Equipment Leasing

Leasing Defined A lease is a contractual arrangement in which a leasing company (known
as the lessor) gives a customer (know as the lessee) the right to use its equipment for a
specified length of time (lease term) with a specified monthly payment. Depending how the
lease is structured, the customer may either purchase, return, or continue to lease the
equipment once this agreement expires.

What are some key reasons why people lease as opposed to purchasing? The reasons
are many. Here is a short list:

• Conventional bank loans usually require more money upfront than leasing and often
  have restrictive covenants.
• Conventional debt financing may require a 10-20% down payment.
• Leasing generally requires only one or two payments upfront, which are applied to your future payments.

Finance 100% of your costs today! In most cases, the full amount of the equipment, as well as the service, shipping, installation costs and maintenance can be included in the lease. This spreads the cost out evenly over the term of the lease, freeing up cash flow for your business now, when you need it most.

Significant Tax Savings Monthly payments on equipment and operating leases are typically viewed as operating expenses. These expenses offer significant tax benefits. You should always consult with your financial advisor to determine the most tax-beneficial lease for your company.

Fast Turnaround M ost applications receive bids within two business days. This means you can acquire equipment right away, without having to consider loans or other more time-consuming financing vehicles. As well, leasing enables you to completely tailor a solution that meets your company's requirements. The flexibility of leasing is unprecedented - the length and amount of your payments can be customized to fit your situation.

Debtor In Possession (DIP) Financing

DIP Financing Defined: Financing arranged by a company while under the Chapter 11 (Reorganization) bankruptcy process. DIP financing is unique from other financing methods in that it usually has priority over existing debt, equity and other claims. In most cases, DIP financing in done only under order of the Bankruptcy Court, which is empowered by the Bankruptcy Code.

Bankruptcy is a costly process but liquidation may be avoidable. By putting an asset-based lender (factor) in place early in a company's life cycle--while there's still liquidity--it stands a better chance of successfully restructuring and rebounding from the reorganization.

Purchase Order (PO) Financing

Purchase Order Financing defined: Financing provided to fulfill a purchase order. PO financing is used to pay your suppliers, laborers or other intermediaries for goods or services to generate additional sales. A company will need PO financing if it needs additional working capital to complete the sale.

Every PO finance transaction is different; but they can be broken down into two main categories:

• Finished Goods: refers to transactions where the goods are usually delivered directly from the supplier to the customer, and never touched by the client.
• Non-Finished Goods refers to transactions where the client takes possession of the goods in a raw or semi finished state, in order to finalize the product and deliver to the customer.

Call us at 877-254-6290 to discuss any of the above financing options.