Creative solution overcomes major obstacles and closes $1M deal.

CASE STUDY
Vendor: FileNet
End customer: American Educational Systems (Formerly Educational Loan Services Incorporated)
Finance provider:  Principal Management Corporation (predecessor firm of Active Capital Funding)
Principal in charge: Mike Wagner
CHALLENGES
Multiple obstacles stood between FileNet and closing a 1.8 million dollar transaction prior to FileNet’s year-end:
  1. A need to update outdated systems to comply with market and regulatory demands.
  2. Equipment and software financed by other lessors that needed to be replaced.
  3. No operating or capital dollars available until the next fiscal year.
  4. Limited financial information was available due to the complex nature of a subsidiary and parent company relationship.
  5. Educational Loan Services Incorporated (ELSI) could only engage in financing contracts directly with the vendor.

SOLUTION
Jim Picardi, a tenacious and seasoned FileNet sales representative, was familiar with these type of challenges having worked with FileNet Leasing (see side bar) on prior transactions.  Jim was also a graduate of FileNet Leasing's Financial Selling Skills Education (FSSE) program.  As such, he knew to get the leasing team involved right away. 

With little time left in the 4th quarter, PMC quickly negotiated an early termination and buyout for the existing lease. The next step was to create an operating lease structure acceptable to Education Loan Services Inc.’s parent company. This structure made it possible for the parent to provide a lease guarantee, which in turn provided a much lower interest rate using PMC’s established lender relationships. The final step was to install the system immediately while delaying lease payments for three months – into the customer’s next budget year.   

RESULTS
FileNet Leasing enabled a very important and bookable year-end transaction for FileNet, and helped create a very satisfied customer.  ELSI was able to acquire an up-to-date system in the context of a budget-friendly payment plan.

FileNet continued to make Financial Selling Skills Education (FSSE) a requirement for all of its sales reps. FSSE was provided without charge by PMC.