Non-Profit University Uses Custom Structured Equipment Lease to Solve Multiple Strategic and Budgetary Challenges


A non-profit university was to be the beneficiary of a seven-figure donation to launch a new specialized chemistry department. The donor pledged to contribute specific amounts, on specific dates, over the course of five years. However, the school needed to make significant upfront information technology and laboratory acquisitions. The school also wanted to start refreshing its technology infrastructure on a more frequent, predetermined schedule.

Business Challenge

The university faced two key business challenges. They needed to smooth out cash flows relating to charitable gift receipts, and better manage technology refresh cycles so they could position themselves as a technology leader in order to attract the best and brightest students and faculty.

Financing Solution

The university acquired financing through First American Equipment Finance, which serves middle market and investment grade corporations throughout the U.S. First American structured a leasing solution that matched the donation timeline. The school leased their laboratory and IT equipment, utilizing the donation to make the lease payments. This custom structured equipment lease�centered around the customer's unique business needs and objectives—solved multiple strategic and budgetary challenges for the client.

"Understanding WHY the financing is needed, and the customer's long-term business objectives, is critical," said Bill Verhelle, First American Chief Executive Officer. "The most satisfying part of our work is helping our customers succeed."