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There comes a time......

when things have to be replaced or new things added to help you do your job a little better. There is always the issue of having too many needs with too little funds to address all the requirements. Regrettably, that doesn't make the problem go away. There is a limit to the taxes that can be levied and voluntary support is at an all time low. However, federal funding programs can provide some measure of relief. When coupled with creative financing, many of those we serve have been able to keep pace with expanding public safety requirements. Perhaps a real life example might better make our point.

A suburban/rural volunteer fire department recently contacted us and asked that we attend a special meeting to discuss their communications needs. Like almost everyone else involved in fire and rescue activities, they intended to apply for a grant, but they had an immediate need for radios. Basically, they wanted to know what was new, what it cost, and the significant features associated with our current offerings. We passed out information of pagers, radios, and special products that we thought would be of interest. A copy of what we presented is available by clicking here.

Our department needed radios now. Even if they do get a grant, the money could be up to a year away. So what do that do? They use Interim Financing. So, what is Interim Financing? We are not bankers, but we have dealt with bankers long enough to pick up a few banking terms like bridge loan and Interim Financing which essentially mean the same thing. In a nutshell, it means lending you money with the first payment deferred for up to a year. If you get your Federal grant, or your ship comes in, or your community is authorized to open a casino, then you pay off the loan. If you don't get the grant, endowment, or gift from above, your bridge loan converts to a fixed term loan with terms of up to five years which you can pay off with monthly, quarterly, semi-annual, or annual terms. There is a catch. You must purchase fifteen thousand dollars or more in equipment to qualify for these special terms.

In our example, the department needed radios. They needed a repeater and they needed headsets. Maybe if they set up a fifteen thousand dollar purchase over a five year term with the first payment deferred for one year, they could get much of what they needed immediately. If they get Federal grant money, well and good. If not, they have acquired the equipment they need on terms to fit their ability to pay. So, how do we do this? Glad you asked!

Falcon Direct partners with others who provide specialized services to support our efforts. One of those partners is Brad Schwobel of CTC Municipal Capital. We've been working with Brad since the 80's. We both specialize in serving those who serve others with a major emphasis on public safety - in particular, smaller volunteer fire departments and municipalities. This long term relationship has allowed us to develop creative financing programs to meet the needs of those we serve. The aforementioned Interim Financing plan with automatic conversion to extended payment terms of up to five years is especially well suited for the needs of both fire and law enforcement users.

Actually, this whole thing started as a service to law enforcement users who were awaiting their share of drug task force money. Sheriff's Departments in particular were able to acquire services such as our automatic vehicle location and mobile data systems using task force funds that generally are available in less than a year after confiscation of vehicle, cash, or other valuables. The same concept has now been expanded to include fire departments and EMS rescue agencies who are applying for FEMA grants.

If you are planning to apply for a Federal grant, we can provide a wide variety of communications products that should be eligible for funding. Additional information on products available and estimated costs are available by clicking here.

After you have selected what you need NOW, give us a call and we will finalize the figures. The credit application is available by clicking here. If have any questions, or need to talk to Brad, his number is right there on the application. If you have questions regarding any of the equipment offered by Falcon Direct, please call us at 1.800.489.2611 or email sales@falcondirect.com.

In addition to interim financing, there are other needs by both governmental and commercial users. For example, some of the advanced technology equipment such as automatic vehicle location systems are changing so rapidly that it is difficult to keep up. Vendors are going out of business while new ones enter the marketplace. Under such conditions, leasing is a very viable alternative, both for governmental users and commercial users who want freedom from obsolescence and in the case of commercial users, potential tax advantages. The following is an excerpt of information we provided for a municipality considering GPS automatic vehicle location systems. The comments would apply equally to commercial users.

We do not recommend the outright purchase of any vehicle tracking system due to the potential of obsolescence before the end of useful equipment life expectancy. The shakeout of suppliers as a result of technology advances is an additional concern. Accordingly, we feel that leasing program offering the opportunity to switch to more advanced technology as it becomes available is a much better choice.

We offer a unique leasing program especially suited to the special needs of law enforcement users. We call it FlexLease. In most states, a government entity cannot enter into a lease agreement that extends beyond one year, or in some cases, beyond the term of the existing elected administration. The problem with this is that a typical lease term of three years is generally required to amortize cost over a reasonable operating period. In general, amortizing equipment cost over a three year period allows the equipment cost of be spread out to meet reasonable budgetary requirements while simultaneously providing for planned replacement based on the average operating life of the equipment.

The Catch-22 is that you need a three-year payment schedule, but you are limited by law (in most states) to contract obligation periods of no more than one year. So how do you address this problem? That’s what FlexLease is all about!

We set the FlexLease up to amortize the cost over a three year period and simultaneously provide a provision to cancel at the end of any one year period without penalty. In other words, if funding isn’t available in the second or third year, the lease can be terminated in full compliance with applicable state law. Conversely, if you continue the lease for three years, you have the option of replacing with new equipment, terminating, or continuing to lease at a reduced amount as you choose. You have the option of paying on either an annual or monthly basis as desired.

If you have any questions, or if we can be of service in any way, just give us a call at 1.800.489.2611. We look forward to serving you!

The Falcon Team
At your service!

36 - 20th Avenue NW- Birmingham, AL 35215 - Phone 205.854.2611 - Toll Free 800.489.2611