Commonly Asked Questions

Who is IRFS?
Ingersoll Rand Financial Services is an enterprise wide Ingersoll Rand Initiative created to ensure that all Business Units have access to innovative and competitive financing solutions to support the sale of Ingersoll Rand products and services globally. We are an experienced team of Ingersoll Rand employees working with different lenders to make it easier for our customers to acquire the solutions they need.

What can be financed?
IRFS can finance new and used Industrial Solutions equipment including installation, start-up and commissioning. We also have the ability to bundle contracts for Ingersoll Rand services into the lease payment.

What is a Soft Cost?
A soft cost is something that cannot be taken out and/or resold once its been delivered and installed. Examples are installation, software, service, air, start-up.

What is a Hard Cost?
Hard costs are the equipment being financed. This is all equipment that could be removed and resold from the customers facility.

What about Air?
Air contracts may be added into the equipment financing.

Is Used Equipment Financing different?
Depending on the age of the equipment, its condition and the credit strength of the customer used equipment financing may have a shorter lease term and be limited to nominal purchase options ($1 Purchase Option or small Balloon).

What terms are available?
12, 24, 36 48, 60 month terms are available for all equipment. Longer terms are available for customers with exceptional credit quality.

What products can you offer?
IRFS offers Loans, $1 and Fixed Buyouts/Balloon, Fair Market Value Leases, and Operating Leases.

Can IRFS offer skip or seasonal payments?
Yes. We can offer many different structures to meet cash flow requirements including skips, seasonal payments, deferred payments, and step-up payments.

What rates can I expect?
You can expect rates that are extremely competitive. Rates are based on credit strength, the size of the transaction, equipment, and the term.

Are rates floating or fixed? (not applicable to special promotional rate deals)
Rates are held for 30 days after the credit approval. After that period, they are indexed to U.S. Treasuries (or Government of Canada Bonds) and float until the equipment is accepted and the lease begins. Once the lease begins the rate is locked in and will not change during the term.

What information is needed to submit an application?
IRFS will look at deals under $150,000 on an application only basis assuming enough public information is available to make a credit decision. Transactions over $150,000 will require a complete credit package including:

1. Signed and completed credit application.

2. Last two year-end audited Financial Statements. Accountant reviewed statements are also acceptable. If in-house statements are the only information available, they will be accepted accompanied by Tax Returns.

3. Three years financial statements will be required for transactions over $500,000.

4. If a Personal Guaranty is required, a personal financial statement for each guarantor and/or their personal tax returns will be requested.

5. Specifications and selling price for each piece of equipment.

How long does the credit approval process take?

• Transactions under $150,000 will be decisioned within 48 hours.
• For transactions between $150,000 and $500,000, the decision typically takes 2-3 business days from receipt of complete credit package.

For deals over $500,000, a credit decision takes approximately 3-5 business days from receipt of complete credit package.

What happens after credit approval?
Documents are prepared and sent out. The documents are completed by the customer and returned along with the documentation fee and any required advance payments (if applicable). Once this is complete, IRFS will authorize shipment and installation of the equipment. After that the equipment is installed, the customer signs a delivery and acceptance certificate and the lease begins.

Who should sign lease documents?
A person who is authorized to commit the company to legal and financial obligations must sign the documents. Examples would be a President, Vice-President, CFO or Controller.

Why are Personal Guarantees sometimes required?
The vast majority of financing for transactions under $100,000, whether it be through a bank, leasing company or other lending institution, requires a Personal Guaranty. With small businesses where the individual is the business they are almost always required for financing. With larger companies where the length of time in business is short and/or they have not generated significant retained earnings Guarantees are often required.

Who do I contact if I have questions after my lease has started?
Contact your IRFS representative. Your IRFS rep is Lori Fike. (p) 704-896-4809 (f) 704-896-5097 (e) lori_fike@irco.com

How do I get started?
Either fax in your application form or contact your IRFS representative. Your IRFS rep is Lori Fike. (p) 704-896-4809 (f) 704-896-5097 (e) lori_fike@irco.com