Sparta Commercial Services, Inc. (SRCO) Satisfying Local Municipalities' Car Replacement Needs With Leasing Program
Seeking Alpha Analyst Since 2008
Sparta Commercial Services is a New York-based technology company with footholds in the automobile, powersports, and recreation industries. The company offers a wide range of tools and applications for state and local governments, consumers, retail dealers, and vendors in these sectors, which includes consumer and municipal financing options and innovative technological solutions.
Among the company's many services, one program stands out: Sparta Commercial Services' Municipal Leasing Program. In this division, the company focuses on giving local or state governments economical, efficient equipment acquisition services so that these entities can quickly replace critically needed equipment. This fills a critical gap as local or state governmental agencies may require equipment that is crucial, or even necessary, for efficient public services, but may not have the immediate financial resources required to purchase that equipment. The company's lease purchase financing service enables these agencies to obtain their needed equipment and make payments over time, letting the agencies avoid making sizable, upfront payments all at one time.
Sparta Commercial Services offers great flexibility in these payment options, allowing its clients to pay on a monthly, quarterly, semi-annual, or annual basis. As a client makes these payments, it retains ownership of the equipment and builds up its equity over time. Furthermore, municipalities commit to making lease payments, not contributing to debt. In addition, with a "funding-out" clause incorporated into its leasing agreements, Sparta Commercial Services is able to extend its Municipal Leasing Program benefits to municipal clients without the time-delaying, uncertain process of voter approval.
Leasing payment agreements are handled on a year-to-year basis. Municipalities are granted the benefit of low interest rates on the leasing payments as well. To ensure the municipalities' equipment acquisition needs are constantly managed, the company maintains relationships with a wide variety of vendors, which often are repeat equipment providers for the company in multiple leasing transactions.
Since the Municipal Leasing Program has been up-and-running, one equipment type that has emerged as a popular item for the division to cover is vehicles. The division is capable of serving a municipality or public entity of any size, along with filling any size demand or need. Whether a small town requires just a single vehicle, or a populated city needs to replace an entire fleet of vehicles in one of its departments, Sparta Commercial Services' leasing program truly has a solution for every need.
In December 2013, the city of Raleigh, North Carolina turned to Sparta Commercial Services' leasing program to replace a fleet of police motorcycles with BMW vehicles. The city was the company's eleventh jurisdiction in North Carolina to tap its Municipal Leasing Division for equipment acquisition. The other 10 jurisdictions were municipalities, all of varying sizes. The service recipients in that transaction were actually repeat clients, commending Sparta Commercial Services for its swift attention to their needs as well as economical and easy-to-deal-with process.
As Sparta Commercial Services' Municipal Leasing Program continues to grow, so will its asset classes which it can provide. Since its beginning, the program has grown to accommodate asset classes including motorcycles, police cruisers, surveillance systems, fire apparatus, tactical vehicles, buses, trucks, EMS vehicles, and others. The company looks forward to expanding these beneficial relationships to new municipal clients, and renewing ongoing, same-term contracts with municipal clients throughout the United States.
For more information, visit: spartacommercial.com
More information about Sparta Commercial Services' Municipal Leasing Program can be found at: spartamunicipalleasing.com
QualityStocks provides investor relations services to publicly traded companies in exchange for compensation. This article may be part of our efforts to widen a client's exposure. To read our full disclaimer, visit http://disclaimer.qualitystocks.net
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.