What makes US Server Supply’s program both attractive and beneficial to a small business client or professional who has currently exhausted their remedies for traditional financing is the following:

MONTHLY PAYMENTS 

Clients will never have a weekly or daily repayment. Their payback will be on monthly payments. This causes less stress on cash flow for a small business or practice.

MULTIPLE-YEAR TERMS

Clients can choose a 3, 4- or 5-year term to spread costs and reduce the size of monthly payments down to a manageable and affordable amount each month.

COSTS LESS THAN A HIGH-INTEREST CREDIT CARD

The structure of the transaction (created by US Server Supply’s Agreement with the clients), from just a cash perspective, after writing this off as an operational expense, a client’s true cost of funds will be somewhere between 17% and 22% per year simple interest, times 5 years. Usually in the 18%-19% per year range (APR figures higher).

DOES NOT COUNT AS PERSONAL DEBT

This will not report to the client’s personal credit reports as personal debt. Therefore, if a client desired, they could potentially use the cash back provided to their business to pay themselves, so they can then pay down personal revolving debt balances for the purpose of increasing their personal credit scores. This could in turn make more traditional types of financing available to them, as their revolving balances will be decreased, and their personal debt to income ratio will not have increased due to getting this financing.

WILL NOT REPORT TO PERSONAL CREDIT REPORTING AGENCIES

Unless a client defaults this will not report to any of the personal credit reporting agencies. The only thing that will ever show is one bank or leasing company inquiry per transaction. US Server Supply only does a soft pull of personal credit and will also run a full Dun & Bradstreet report and an Experian Business credit report to get a full credit profile on each client.

PROVIDES AN ONGOING TAX DEDUCTION

The structure of the written Agreement between US Server Supply and each client allows their accountants to write off the entirety of all payments (principal, interest and sales tax) for the duration of the client’s 3rd party finance agreement (5 year lease). The client will be able to write this off on the P & L side as an operational expense for both a federal and state tax deduction.

BUILDS BUSINESS CREDIT AS IT IS PAID OFF

As clients pay this off it will report automatically to Pay Net, and to either Experian Business, Equifax Business, or both. Clients could also buy D & B Credit Builder to add it in there; but that is usually not necessary. The bottom line is that paying this off will lead to having an easier time in the future for getting traditional funding, if the clients continue to take care of their personal credit and their businesses stay profitable with good money management.

DOES NOT COUNT AS A FUNDING POSITION 

The cash back the client gets does not count as any type of funding position. By contract – Half the cash they get back is called a “payment assistance incentive” (which is actually a rebate), and the other half is called an “advanced buyback payment” (which is actually the client selling US Server Supply the equipment back after they pay it off, in exchange for a cash payment now).

Does that sound familiar: get cash now in exchange for the purchase of something in the future? Only in this case it is not receivables, with repayment beginning tomorrow, or next week, it is enterprise class IT equipment 5 years out.

When the client gets this 2-part, contractually owed cash back from US Server Supply in one wire payment, it does not show in their business bank account as a funding. It instead shows as payment for the fulfillment of a contact (which is exactly what it is).

THERE ARE NO RESTRICTIONS ON USAGE

The client will not have to pay down any merchant cash advance positions or any other funding with the cash they get. Technically the cash’s purpose is to help pay for the costs of the IT system for the first 2 years or so; but what they do with it is on them. No judgments here. Some clients need cash for working capital now; and if so, this product makes sense.

WILL NOT INTERFERE WITH OTHER FUNDING PRODUCTS

The UCC filed by whichever leasing companies or banks our vendors utilize to secure the client 3rd party financing will either file no UCC or will file a zero-dollar amount UCC that says “equipment” on it. This makes it so anyone looking knows it is an equipment lease UCC and not a loan, line of credit or merchant cash advance UCC. Add to that, the fact that the money appears in the client’s business account with a memo declaring that it is payment for satisfaction of a contract (which it is), and there is no MCA provider that could call this (or view it as) a “position”, and there is no bank which would require the client to pay off equipment leases in order to provide traditional the client traditional cash financing.

PROVIDES SOMETHING USEFUL TO THE BUSINESS BESIDES CASH

Besides getting unrestricted, non-interfering cash, on a 5-year term, with monthly payments that does not count as personal debt or report to personal credit; but builds business credit as it is paid off; the client also gets something else that potentially has great value for their business or practice.

Each client gets, per IT system, one unused, Hewlett Packard Enterprise DL 380 Gen 10 server with multiple hard drives, installed RAID and a software license, that is also protected for 5 years with an extended warranty and that also comes with data back up and disaster recovery protection.

These IT systems can be installed and networked anytime the client wants and can even be temporarily used as high-powered computers and data storage, simply by adding a mouse, keyboard, and monitor, and installing the Windows operating system provided.