Frequently Asked Questions

Training your sales organization begins with educating them how to respond to your prospects most frequently asked questions, (FAQ). The following are examples of some of those questions. These are examples of the materials each EBA client is given access to in our “client only” Login section of this web site.

Is what you are describing, leasing?
No, you may be thinking of this in similar terms, which are often used for the acquisition of hardware. This is a simple payment method – not a lease, which is normally secured by the asset
 

Why should I finance with you, we have our own bank which provides all our financing needs?
Your banking institution probably may not finance software, since it is in effect an unsecured loan. This is why we are in business; we offer a unique service which most financial institutions are unfamiliar with, and unable to accommodate. Our program further allows you to keep your existing credit and cash in reserve for additional expenditures or to respond to unexpected opportunities.
 

What kind of interest rate am I going to be paying for this?
Our rates are commensurate with your credit worthiness.
 

Won’t financing just cost me more in the long run?
Clearly there is a finance charge associated with this program, however we will work with you to determine whether accommodating your current needs for financing out weigh the charge you will pay over the life of this agreement. This package is being offered to accommodate your needs, which will include highly competitive interest rates over the term of the agreement.
 

Can you structure the payment schedule according to my needs and budget?
Yes, our financial services program is intended to allow you to structure payments in line with your corporate budget planning. We are not starting this conversation with any particular plan in mind. Rather, we would like to design a payment plan, which is unique and takes into account the requirements of your entire corporation.
 

Who is actually holding the paper? – Who are we paying?
Ultimately the ‘paper’ is held by an accredited lending institution that offers the best and most competitive rate structure for the terms we are seeking. EBA will act as an agent for this agreement. Our job in effect is to structure a payment strategy that fits your requirements, locate a national lending institution, and complete the transaction with all parties in approval. Since EBA is not a bank the only thing we are assigning are the payments but none of the obligations outlined in the license agreement.
 

We would like to move forward, but our budgetary limits are stopping us
We recognize the real value of any software will not come immediately. Ahead are implementation, verification, and finally – rollout and deployment. Our proposal is designed with a payment schedule, which will attempt to match payments with the value rate of return you can expect.
 

Why should we use payment terms when we have a line of credit from the bank or we can obtain a line of credit from the bank?

Our customers have often indicated the following as major reasons why they have used payment terms rather than bank financing:

·         Payment Terms are faster than bank financing.

·         EBA documents do not contain restrictive covenants sometimes contained in bank loan agreements.

·         EBA documents are generally easier to understand and shorter than bank financing documents.

·         Payment Terms preserves bank lines in the event a need arises.

·         EBA is more flexible than banks.

·         EBA personnel specialize in the software industry and thus understand a customer's need better than bank personnel.

I need your products, but I don’t have the capital budget available at this time to acquire them.
By structuring your acquisition as an operating lease, we take your payments out of the realm of a ‘capital expenditure’ with nominal or no impact on the balance sheet, and allow your finance department to handle them with your expense budget. Payments are expensed as they are made.
 

To implement our long-term strategy best, we should be using a site license, but most of our limited capital is budgeted for other projects. I may have to go with a ‘pilot program’ or small development license to begin the project.
We have found that pilot programs or trials are excellent for evaluating technology. We recommend that we address the technology evaluation with a project-based solution that is designed to solve a critical business issue while applying the right amount of resources to achieve results. This often may be beyond the scope of available dollars within existing budgets. As part of our project based solution is our ability to design the right payment plan to support your budget issues.

We won’t see an adequate return on this project for at least a year. My CFO is really ‘crazy’ about positive cash flows.
We can structure a payment program with low payments up front, higher payments toward the end. This approach will keep your cash flow positive through out the investment and permit a better matching of benefits to expenses. You will be able to pay for the investment out of the benefit derived.
 

We already have a line of credit at our own bank, and are fortunate to be in a good cash position. Why should I consider financing?
Normally bank loans are secured with other assets. If this is the best use of your cash we always will accept a cash payment. However, our payment terms would allow you to keep your existing credit and cash in reserve for additional expenditures or to respond to unexpected opportunities. Additionally, there maybe advantages to payment terms that could make it the most attractive acquisition method for you.
 

I would like to start the project now, but can I delay the start of the payments for a few months?
We offer a variety of flexible payment structures that offer the ability to start payment as much as six months after starting the payment plan.
 

What do we do at the end of the financing period?
We can end the payment schedule in a manner that best fits you corporate financial objectives. Basically there are two major options:
An installment payment plan involves no buyout at the end.
An operating lease ends with you purchasing the product at a ‘fair market value’ which we will mutually determine, or renew the lease at mutually agreeable terms.
 

Why don’t we just rent your software?
In effect you can. An operating lease allows you to make rental payments for a period up to three years.