Non-standard financing agreements are perhaps the fastest-growing equipment finance option available to customers in today's market, but there remains a certain amount of uncertainty around the model.
In a new article in the National Equipment Finance Association's Newsline, Joseph D. Pulicano, senior vice president of techology financing for Key Equipment Finance, describes the proliferation of non-standard financing agreements, the basics about their features, customer demand, making the shift to a service model, evaluating risk, and the key to success.
“As a service” offerings – sometimes also called managed solutions agreements (MSA) – are a relatively new category of products that provide maximum flexibility for the customer. They frequently include bundled hardware, software, services, maintenance and other assets, with payment variability that can include everything from usage-based payment plans to early cancellation.
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