Alex Gish, Director of Business Development for Dynamic Funding, Inc, discusses the craft brewery boom currently taking place in Colorado with ColoradoBiz Magazine. Read how your brewery should be managing growth by exploring cost-saving measures like production equipment leasing.
Contact: Aimee Miller
Aimee Miller Marketing & Communications
DYNAMIC FUNDING, INC. ADDS DIRECTOR OF BUSINESS DEVELOPMENT
Englewood, CO (March 29, 2016) – Dynamic Funding, Inc., (DFI) a Colorado-based equipment leasing company, announces the addition of Robert Haynes as director of business development. Haynes has over 25 years of experience in commercial leasing, corporate finance and banking.
“We welcome Rob to Dynamic Funding and are excited to have such an experienced local commercial finance veteran joining the team,” says Brad Bayless, vice president of Dynamic Funding, Inc.
Haynes joins DFI from NBH Bank in Denver where he was senior vice president of commercial lending. Prior to his position with NBH, Haynes was the commercial banking manager with Mutual of Omaha Bank.
Dynamic Funding, Inc. (DFI) is a Colorado-based, locally owned and operated, independent equipment leasing company. Founded in 1996, DFI is a full service lessor that provides equipment financing for technology assets, software and services, and additional operating equipment. For more information, please visit www.dynamicfundinginc.com.
FOR IMMEDIATE RELEASE
Contact: Aimee Miller
Aimee Miller Marketing & Communications
DYNAMIC FUNDING & ECOSYSTEMS LAUNCH PARTNERSHIP MAKING ENERGY EFFICIENT LIGHTING ECONOMICAL FOR BUSINESSES
Englewood, CO (February 16, 2016) – Dynamic Funding, Inc. (DFI), an equipment leasing company, and Ecosystems Group, Inc. (Ecosystems), a provider or energy saving services, announce that they have formed a partnership to offer energy efficient lighting solutions to local businesses – reducing energy consumption and offering costs savings to business owners, managers and occupants.
The goal of the partnership is to help owners, managers, and tenants of commercial buildings upgrade to LED lighting, while saving money and conserving energy.
“We are here to help make energy efficient lighting financially achievable for businesses,” says Brad Bayless, vice president of Dynamic Funding, Inc. “Our program enables businesses to get the equipment that they need to operate more efficiently and reduce their impact on the environment.”
DFI and Ecosystems recently assisted The Carillon at Boulder Creek with an LED lighting package that is projected to save the retirement community over $42,000 per year with an annual energy savings of over 333,500 Kwh. The team employed rebates and incentives that paid for over 35 percent of the project costs.
“We are excited to be working with such a tried and true company as Dynamic Funding, Inc. Moving forward, we plan on helping even more businesses save money by saving energy with the help of DFI’s financial plans,” says RJ Mastic, CEO, Ecosystems Group, Inc.
The DFI and Ecosystems partnership program is designed to deliver energy efficient lighting systems at specialized rates without the business needing to assume a large cash expenditure. The team provides a designated LED leasing agent from application through installation.
Dynamic Funding, Inc. (DFI) is a Colorado-based, locally owned and operated, independent equipment leasing company. Founded in 1996, DFI is a full-service lessor that provides equipment financing for technology assets, software and services, and additional operating equipment. For more information, please visit www.dynamicfundinginc.com.
Founded in 2010 in Boulder, Colorado, Ecosystems is a dynamic hub of modern energy and energy efficiency innovation. Ecosystems has steadily grown beyond the Front Range of Colorado into a leading provider of energy saving services with more than 200 clients spanning seven states. For more information, please visit www.goecosystems.com.
At the end of 2015, the Protecting Americans from Tax Hikes Act (PATH) was signed into law, allowing business owners to once again take advantage of depreciation and energy tax benefits. The new package provides a set of incentives that could greatly reduce tax costs for qualifying businesses.
The first benefit for businesses that made equipment, asset and building improvements in 2015 is the Section 179 deduction. These businesses can now expense a combined $500,000 for production equipment (new or used), off-the-shelf software, and up to $250,000 in leasehold improvements. This deduction phases out dollar-for-dollar for equipment and improvements costing more than $2 million, and carries the stipulation that these upgrades need to have been “in service” by December 31st of the tax year. The example below demonstrates how beneficial this deduction could be for tax savings.
Assuming upgrades were “in service” in 2016, the following cost savings could be applied to a purchase of $500,000 in equipment:
$500,000 in equipment
– $175,000 assuming a 35% tax rate
= $325,000 true equipment cost
The next development to come from the PATH Act is bonus depreciation. Bonus depreciation is the provision that allows businesses to expense off a portion of an asset in the year it is added. This has proven to be very helpful for businesses with large amounts of qualifying equipment, as they are able to save large amounts of tax in the year of purchase. A gradual phasedown has been implemented. The bonus depreciation plan through 2019 breaks down as follows:
- As of January 1, 2015 through December 31, 2017: 50%
- As of January 1, 2018 through December 31, 2018: 40%
- As of January 1, 2019 through December 31, 2019: 30%
These rates mean that production equipment and improvement purchases with less than 20 year lives will be able to be expensed at 50% of the asset price in the year of purchase through 2017, 40% in 2018, and 30% in 2019. While this section does carry certain stipulations around qualified assets, it is a great opportunity for companies to invest in necessary equipment for a significant amount of savings.
Qualified Leasehold Improvements
The final piece of the PATH to help businesses save on taxes comes via qualified leasehold improvements. Depreciation lives are reduced to 15 years, instead of the 39 year schedules normally applied. This means that after Section 179 and bonus depreciation deductions, a business will be able to accelerate remaining tax value of improvements over 15 years instead of 39 years. This rapidly reduces the timeframe in which a business can depreciate an asset and enjoy the tax benefits more quickly.
I just returned from the 50th Annual convention of the Equipment Leasing and Financing Association (ELFA), which was held at the JW Marriott in San Antonio, Texas. There were nearly 1,000 attendees, up significantly from previous years.
The general mood at the convention was very upbeat, both in terms of the improving economy, but more importantly, the state of the Equipment Leasing Industry. The feeling is that businesses are returning to the mindset of having to acquire business assets, after scaling back purchases for the last few years. Since they have survived some difficult economic times, where “cash is king”, the option of acquiring new equipment, and paying for it monthly, rather than having a large cash outlay, looks extremely attractive to them.
Another topic of discussion centered around the opportunities available for Independent Lessors, as opposed to Banks and Bank Lessors. This was especially interesting to me, as DFI is an independent lessor. With the numerous regulatory issues confronting banks, independent lessors should be better positioned to react to the specific needs of their lessee customer and prospect base, while not having to deal with these regulatory issues, at the higher levels of the company. This is an exciting time for the leasing business.
Dynamic Funding, Inc. is pleased to introduce the newest member of our team, Brad Bayless. Brad joined us at the beginning of September and comes to the company with over 25 years of experience in the Equipment Lease & Finance Industry. Most recently, he was with the Commercial Equipment Finance Group of GE Capital, as well as Dart & Kraft Financial and CIT. Brad has a degree in Finance from Central Michigan University and a MBA in Finance and Marketing from the University of Minnesota. We are excited to have Brad aboard and know he will be a great contribution to our team.
Dynamic Funding, Inc is pleased to share with you our recently funded equipment leases:
- Industry: Food Processing, Financed: $35K, Location: California, Equipment: Warehouse management solutions equipment, Terms: 36 months, Capital lease
- Industry: Commercial Signs, Financed: $26K, Location: Colorado, Equipment: Computers & Laptop equipment, Terms: 36 months, Operating lease
- Industry: Technology Development, Financed: $10K, Location: Colorado, Equipment: Tape Library, Terms: 24 months, Operating lease
- Industry: Grocery & Liquor Store (Startup company), Financed: $66K, Location: Colorado, Equipment: Point of Sale System, Terms: 24 months, Operating lease
By Jim Tarbel
I attended the Orion First Financial 10th Anniversary Conference July 25 and 26, 2011 in Gig Harbor, WA. The Orion management team updated Orion partners, banks and vendors on Orion First Financial and Mintaka Financial status, business plans and outlook. Conference was very positive. Dynamic Funding is a partner in both Orion and Mintaka. We continue to fund equipment leases with Mintaka and have Orion service the leases. Our focus on operating leases fits well with Mintaka and Orion capabilities. We’re planning to do more business with Mintaka and Orion.