ASSET-BASED CAPITAL SOLUTIONS

LEASING

Leasing is a product where Alloy, as lessor, transfers the right to use an asset to your company in exchange for rental payments during a fixed term. Leasing is offered in Mexico, and includes firms in the United States looking to establish or expand operations in Mexico.

CHARACTERISTICS:

  • Rental contract with equal monthly payments ranging from 12 to 60 months
  • Used to acquire new or used equipment with a minimum up-front investment or to generate liquidity via a sale and leaseback transaction
  • Used for equipment of the following types: industrial, technology, medical, manufacturing, and transportation; among others
  • Lease related expenses are 100% deductible*

*Individual situations may vary. You should always consult your tax and accounting advisors prior to entering into a transaction.

Alloy Diagram - Leasing

FACTORING PROGRAMS

Factoring is a short-term financing mechanism through which you can accelerate the growth of your commercial, industrial, or service company by selling current accounts receivable to Alloy. While factoring is primarily offered in Mexico, Alloy will consider factoring opportunities in the US.

CHARACTERISTICS:

  • Used to obtain immediate liquidity based on the value of the accounts receivable
  • Sale of invoices up to the committed amount
  • Direct collection at invoice due date
  • Easy to manage
  • The factoring discount is normally less than the early payment discount often available to vendors
  • One-year contract with annual renewal
Alloy Diagram - Factoring Program

VENDOR FINANCE PROGRAMS

Vendor finance programs allow the vendor to offer a solution to clients that want to finance their new equipment purchases rather than pay for them in cash or source their own financing. The flexibility of these programs enables growing small and medium size companies to acquire the latest technologically advanced equipment without making a large investment, all while allowing the vendor to increase its sales. Vendor finance programs are offered in Mexico.

CHARACTERISTICS:

  • Alloy qualifies and authorizes financing based on the credit quality of each client and the proposed structure of the sale
  • The distributor sells on credit and begins collecting payments
  • The client is notified and Alloy performs its underwriting
  • Once approved, the client directs its payments to Alloy
  • The distributor continues to support the client and honor the warranty on the equipment under the terms of the original contract
Alloy Diagram - Vendor Finance