Equipment Financing in Today’s Economy Recommending an Equipment Acquisition Strategy for Funding Universe Clients Tel Presented by Jim Gibbons, Director of Funding & Principal

Equipment Financing: The Business Owner’s Secret Weapon

Leasing Expands Borrowing Power Leasing expands alternative credit avenues. Leasing has Tax Benefits through IRS code 179 : Up to $250,000. in equipment expenses can be written off against taxes per IRS Code 179. Leasing keeps the latest technology available to the small business owner by rotating equipment- As an example, we can swap new computers out every two years.

Today’s Situation Lease approvals take patience and planning. 220 Leasing Lenders offer a variety of programs

How Did We Get Here? Leasing approvals are based far more on collateral value than traditional bank underwriting guidelines.

Available Equipment Financing Options-’A’ Credit ’A’ Corporate Credit is defined as:  700+ scores (Equifax Primary)  3-5 years time in business,  Positive Net cash-flow,  Average daily bank balance in the id 5 Figures.  D&B Paydex = 80+

‘A’ Credit Lease Options:  $1.00 Buy Out  Rates as low as 6%  Skip up to 1 st 4 mo. payments  Seasonally adjusted payments  Lease Payments with higher residual (up to 20%) =lower payments.  Step-up and Step down payments

Working Capital Options  Asset Based ‘Title Loans’ Known as Sale Lease Backs..  Credit Card Advances = 3 X Monthly Receipts  Factoring: Money Now Against Invoices no more than 60 days old = Less Profit Later

Submission CHECKLIST for a Lease Approval  Complete and Signed Credit Application:  Goto and fill out secure encrypted online application.  Transaction Summary answering the following: a.) How does this equipment acquisition help the lessees’ bottom line/ROI? c.) Detailed itemized proposal or invoice with serial numbers.  Personal Financial Statements for each guarantor.  6 months current Business Bank Statements  6 months current Personal Bank Statements

 Considering leasing ?  Ask yourself these Questions: 1. Do I want to protect my company against technological obsolescence? 2. What Tax Benefits do I need, all, some or none? 3. Do I need to own the equipment or just use the equipment. 4. I need the equipment, but I did not budget for it. How can I get it now? 5. Do I want the comfort of knowing that I can upgrade the hardware and software, as my needs change?