Often, Prime Contractors have diversity goals embedded within their prime contracts. They can fulfill those diversity goals by subcontracting to Cadence. Cadence leases equipment, provides fleet services, and delivers products & equipment needed by Prime Contractors.
Of significant note, leasing provides the following unique advantages for Prime Contractors:
Predictable Diversity Results
Leasing has the tremendous advantage of creating repeating and very predictable diversity results. Once a lease is initiated, the ongoing lease payments all count toward the Client’s diversity results. These results are generated with no additional effort on the Client’s part.
No Adverse Impacts on Quality or Safety
With many forms of diversity solutions, there can be unintended impacts on project quality and/or safety. With leasing, these risks are eliminated.
Cadence typically works with Fortune 500 customers who have preferred vendors and corporate agreements in place. These vendors often have custom features and special pricing in place for their large customers. Cadence is more than happy to work with our customers’ vendors and does so on a routine basis.
The purchase price of the equipment is the most important factor in the amount of the lease payments. Cadence typically buys the equipment from the customer’s chosen vendor. This way, the eventual lease payments are discounted in proportion to the price discounts the prime contractor has negotiated with their chosen vendors. Using the discounted equipment price as the basis, Cadence applies it’s extremely competitive lease rates, ensuring that lease payments are as low as possible.