After many months of planning and hard work, we are excited to announce that EZ Equipment Zone, LLC has created a new equipment rental program for EZ’s clients to purchase equipment and participate in and allow you to take your equipment rental business to a whole new level! Since there are several new advantages in this new equipment rental program, plus some of the great features from our First-Generation program, we are happy to be introducing the ADVANTAGE PLUS equipment rental program.

One of the first things we are excited about with this Advantage Plus program is that EZ will now have a much larger supply of rental equipment to sell to our clients as they choose to expand their individual rental fleets. We now have the potential to add approximately $1B of additional rental equipment per year to EZ’s combined fleet of rental equipment for the next several years, as the Master Rental Company will be increasing their footprint of locations in the US drastically over the next several years.

Additionally, the Advantage Plus equipment rental program will still be managed and operated as a revenue sharing platform through EZ’s highly popular Asset Management Rental Program, ensuring that each individual equipment owner receives their pro-rated share of rental income on a monthly basis, while maintenance, insurances, and all other operational expenses are shared prior to net rental distribution.

The new Advantage Plus equipment rental program revolves around the following main points and criteria:

1. Each client will be able to purchase and be invoiced for individual pieces of rental equipment and place that equipment into the Advantage Plus rental program by signing the new Asset Management Rental Agreement. Each purchase will have a starting rental date and a projected ending date of a minimum of 5 years.

2. Each client will be required to finance the equipment purchases with a minimum down payment required of 10% of the total price of the equipment package. A maximum amount of down payment allowed will be 20% of the equipment package price.

3. Financing term guidelines will be required, including a 10-year amortization term, with a 5-year balloon payment. (EZ has several banks lined up to provide the financing, or you may use your own bank if they are willing to meet these parameters). Each client will be giving EZ and The Master Rental Company the First Right to Re-Purchase the equipment at the end of the 5-year period. Each client will be able to use the full purchase amount of equipment including the amount financed in determining their Depreciation/Deduction total as long as they meet the guidelines as set up by the tax codes.

4. The Master Rental Company will be signing and granting a First Loss Guarantee (separate document) of 9.99% of original equipment sales price to each individual client/borrower ensuring that they have full intentions to fulfill its First Right of Re-Purchase agreement at the 60-month balloon payment term.

5. Rental Income will be calculated by the following method:
A. A projected Annual Target rate of 15 to 18% net return per year paid monthly on the amount of capital/down payment used to secure the financing.
B. Plus the sum of the principal and interest payment paid monthly during the 5-year balloon payment period.
C. Plus the sum of the maintenance costs, asset management fees, and insurance costs
D. Example: $1M purchase of equipment, with a down payment of $100K, is projected to net the equipment owner a target rate net rental return of $18K per year for 5 consecutive years, after all bank payments, insurance, and maintenance contracts have been previously deducted.
E. Example 2: $1M purchase of equipment, with a down payment of $200K, is projected to net the equipment owner a target rate net rental return of $36K per year for 5 consecutive years, after all bank payments, insurance, and maintenance contracts have been previously deducted.

6. At the completion of the 5-year (60 month) balloon payment term, EZ and/or the Master Rental Company, will be exercising their First Right to Re-Purchase the equipment by paying off the principal balance remaining on the loan plus paying back the client 100% of their capital/down payment used to originally purchase the equipment.

7. After selling the equipment to EZ/Master Rental Company at that time, each client will be free to determine whether to participate in the rental program again by purchasing more new equipment and starting another 60-month cycle or use their capital towards some other endeavor or investment.

 Advantage Plus Highlights:

1. Is projected to net an 18% Rental Rate Return per year for 5 years on your capital/down payment
2. Loan payment and all expenses already accounted for.
3. Set purchase date and pre-set sell date. No worries about re-sale value.
4. First Right of Re-Purchase and a First Loss Guarantee signed by Master Rental Company.
5. Receive 100% of your capital/down payment back at the ending sale date.
6. Tax Deduction based on the total purchase including amount financed.
7. Immediate positive cash flow allows for additional equipment purchases/compounding effect

The initial reception by our clients and partner banks has been tremendous and we expect the Advantage Plus rental program to be highly popular and a sustainable program for many years to come. We are currently taking orders for equipment and will do our best to fill as many orders as we can before year end. Feel free to call or email us and ask for an info pack on the Advantage Plus rental program.