As seen in Forbes

AS SEEN in FORBES MAGAZINE: March 1, 2010

Merrimak Capital Company Earns
Customer Loyalty with Flexible Leasing Programs

In the $600 billion equipment finance sector, Merrimak Capital Company successfully competes by focusing on the long run. “We emphasize customer service…not just having the lowest lease rate to win the deal. What is most important is how we treat our lessees throughout the life of the lease.” says Mary Kariotis, CEO of the independent, full-service leasing company based in Novato, California.

Merrimak caters to the investment-grade marketplace with nearly all of its lessees being well-known and respected names. Merrimak has retained the majority of its lessees for 10 years or more, and its administrative and sales staff also have an average term of employment of 10 years. This is an unusual feat in a cutthroat industry.

Kariotis credits her company’s 80% customer retention rate to Merrimak’s ability to offer flexible terms and conditions to businesses and institutions with fair treatment at lease end. As an independent lessor with its own refurbishment centers, Merrimak doesn’t need to nickel & dime lessees when they return equipment. Merrimak has virtually eliminated any end-of-term chargeback fees for IT equipment with missing, damaged and/or broken parts and has reasonable policies for normal wear and tear of all types of capital equipment.

“Because we are manufacturer indifferent, we can be flexible throughout the lease term.” says Kariotis. “Manufacturers who lease equipment can be very heavy-handed in chargeback fees on retired equipment. We don’t have a stake in a customer’s choice of manufacturers. Our priority is to help them manage capital, utilize assets efficiently, minimize equipment obsolescence, properly dispose of capital assets and ensure that leasing is and was the most economical way to acquire equipment.”

Merrimak typically holds nearly 90 percent of the equity invested in its equipment leases. Merrimak willingly renegotiates lease agreements with customers mid-term without penalty – a practice practically unheard of in the industry. Recently, a lessee needed to restructure 29 schedules for accounting purposes. Merrimak rewrote all its schedules and invested additional capital in the leases mid-term with absolutely zero financial repercussion to the lessee. No wonder Merrimak is the preferred lessor.

Solutions for Business, Healthcare, Legal & Education

Merrimak was founded in 1991 as an IT equipment broker by Michael Kariotis. Today, it is a full-service equipment lessor with significant expertise in IT and a robust portfolio of medical, manufacturing & materials handling equipment. Merrimak provides customers with a single point of contact for all leasing requirements. Leasing solutions are available globally and include currency exchange for international customers.

Merrimak has a unique niche in the educational marketplace where it successfully offers comprehensive seat management programs for high schools & large accredited colleges. To address the inventory management challenges posed by historical attrition rates, Merrimak’s seat management feature aligns equipment use with its corresponding expense and provides the flexibility to return excess equipment during the lease term without penalty.

All of Merrimak’s customers enjoy unparalleled asset tracking power through the company’s web-based tracking system. iTrack offers customers unlimited ways to sort, track and report data, whether leased from Merrimak or owned by the customer.

When Mary joined her husband in 1996, the company began its leasing services. Merrimak recently became a Women’s Business Enterprise, making it possible for customers to qualify for Tier One Diversity Spend Credit. Mary Kariotis explains: “Lessees truly benefit when they deal with a real WBE lessor who offers competitive pricing, flexible terms and excellent service rather than a broker posing as a lessor who is just passing the deal to provide diversity spend credit.”