Anticipation Discount - Financing

The Trane Anticipation Discount Program can give you the opportunity to add value to your HVAC equipment decisions by reducing the cost of purchase by making payment prior to shipment. With this program you can reduce your costs while financing the project at an attractive rate, gain immediate order approval and enhance your credit standing.

The Trane Anticipation Discount Program can be customized for each project you are planning, allowing for variable payment amounts in addition to variable payment dates.

The amount of your final discount is based on a formula that incorporates several factors:

• the payment amount
• when the payment is made
• the discount rate
• the date the equipment ships

All Trane customers with current accounts are eligible to take advantage of this program. To obtain an Anticipation Discount Program quote, contact your local Trane Sales Representative or the Trane Financial Service Department.

Anticipation Discount Program example:

The formula is as follows:

Discount = (Discount Rate x Payment x (The number of days/360)) divided by (1+(Discount Rate x The number of days/360))

So, assume payment for an equipment purchase valued at $100,000 is made 15 weeks prior to shipment. Also assume the annualized prepayment rate is 6%. The actual discount amount is calculated using the formula:

(6% x 100,000 x (135/360)) divided by (1 + (6% x 135/360)) = $2,300

Note: The 135 days includes 30 days normally given under standard credit terms.

Should shipment occur beyond the estimate used for calculating the discount, Trane will adjust the discount for the additional days per the discount formula. If shipment occurs early, at Trane's discretion, you will be entitled to the full discount quoted. Adjustments are not made for shipping variances of five days or less.