Some examples of
our successes:
Lease
Placements
Success!! Firm -ABC- was a
start-up of three professionals with strong personal financials
but no business history. The computer equipment and software
necessary for the firm to conduct a profitable business came with a
price tag of $150,000. We were able to gather the financial
information in a manner that was not overwhelming to the
firm, making use of existing information, and prepare a
favorable credit package for submission to several funding
sources. Within 24 hours the firm was sent contracts by e-mail
for the full amount. Orders were placed in the next two days,
equipment was delivered within the next two weeks and the firm was running at full-throttle in
less than their 21 day target date. Vendors were paid within
two days of invoice submission.
Success!! Firm -DEF- was a
well-established firm, looking for the most competitive rate and
contract terms, along with a structure that would allow them to
acquire equipment and software from various vendors, over the course
of the year. Their expected total expenditures were in the
$1,000,000. to $3,000,000. range over the next two years. We
gathered together financial information from the firm and prepared a
complete credit package for submission to several funding
sources. After credit review and approval, we solicited
proposals for in-depth analysis. Using our unique presentation
format, we were able to compare all the elements of the proposal,
including pricing, structure and contract terms for the firm's
evaluation. Having taken away all the minutiae for the firm to
consider and with our detailed consolidation of the responses, this
firm needed a minimum amount of time reviewing just one,
all-inclusive, comprehensive report.
Consulting Services
Success!! Firm -GHI-
entered into a lease for a telephone system for which the original
cost was $500,000. The lease payments for 60 months came
to approximately $10,000. with a lease rate at 7.5%. At the
time, this rate was considered to be extremely competitive.
The firm was very happy with the deal. What the firm missed was
that the contract gave the responsibility of end-of-term notice to
the firm. In the absence of this notice, the lessor could
renew the lease for a period of one year. Even if the firm had
noticed this provision, the individuals who may have made the
calendar notation at the time the lease started were no longer
with the firm five years later. Needless to say, the firm did
not send notice the first year.
The lease renewed for a year at a cost to the firm
of $120,000 which raised the lease rate to about 13%. This may
have been tolerable, but the firm was subsequently renewed for
a second year, since the bills kept coming and the expense was not
questioned. The lease rate was now up to about 16.25% with an
overpayment of $240,000.
Stoddard & Associates was called in on an audit
basis to review all outstanding leases, both active and
inactive. We immediately found this oversight and
reported it to the firm. We prepared the appropriate
termination notice which was accepted by the lessor and although we
were not able to recoup the entire overpayment, we negotiated for
return of one-half of the second year renewal which resulted in a
savings to the firm of $60,000.
Success!! Firm -JKL- was a
manufacturing firm with several locations in the U.S. and
abroad. They were interested in closing their Los Angeles
annex but were afraid that the cost to buy out all existing
equipment leases would be prohibitive. Stoddard &
Associates conducted an in-depth review in a short period of time
and pinpointed the exact termination dates as well as
ascertained the costs associated with buyouts and/or early
terminations. With this information, the firm was able to
commence negotiations on their properties from a position of
power and knowledge.
Would you like to be our
next success story?
 
Contact
Stoddard & Associates at (310) 390-2009 or e-mail at
Lease@StoddardAssociates.com
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