1. Financial Solutions for Growth… Equipment Financing

2. Why Choose Financing? More companies acquire equipment through leases than loans Businesses recognize the value of equipment comes from its use, not necessarily it’s ownership Reasons Companies Finance 80% of businesses finance 30% of assets acquired are financed

3. Benefit from Equipment Use With financing, your business need only cover the monthly payment to be profitable Businesses profit immediately from equipment use: Better, high-end equipment for minimal change in monthly payment (avg. $20 increase for every additional $1000 financed!) Lease payments are a 100% tax-deductible expense for your business! Example: Consider the productivity of new equipment and an affordable $500 Monthly Lease Payment (Usage/Rental Fee) Daily Cost of Equipment Monthly payment $500  by 30 days = $16.67/day! Hourly Cost of Equipment $16.67  by 8 workday hours = $2.36/hour!

4. Benefit from Equipment Use Flexible financing options permit you to structure your lease in the most convenient manner for your business. –Not having to come up with cash for “soft costs” means no large outlay of cash. ItemDescription Amount Financed You determine (may include soft costs)* Lease Term12, 24, 36, 48, or 60 months Down Payment0, 1, or 2 payments or 10% down End of Lease Option $1.00 Buyout (Non-Tax Lease) SD=Buyout (Non-Tax Lease) 10% PUT (Non-Tax Lease) 10% Option (Tax Lease) Fair Market Value (Tax Lease) Soft Cost Examples* Training Installation Integration Sales Tax Freight 20-30% of entire funding amount may be in soft costs.

5. Two Types of Leases For IRS purposes, a lease is either a: Each has different tax benefits and end of lease options Tax Lease or Non-Tax Lease

6. Tax Savings: Non-Tax Lease Non-Tax Leases: Attractive to companies that want the tax benefits of ownership Lessee purchases equipment upon lease termination at a pre-agreed amount: $1.00 Buyout, 10% PUT, SD=BO, or EFA (Equipment Finance Agreement) Tax Benefit: Accelerated depreciation using IRC Section 179 in year purchased and put in use and interest write-off throughout the life of the lease Financed Amount $125,000 1st Year Section 179 Write-off: ($102,000 is max. write-off in 2005) $102,000 Normal 1st Year Depreciation ($125,000-$102,000=$23,000x20%*=$4,600) *Depreciation calculated at 5 years=20% $4,600 Total 1st Year Deduction ($102,000 + $4,600 = $106,600) $106,600 Tax Savings Assuming Rate of 35% ($106,600 x.35 = $37,310) $37,310 Cost of Equipment after 1 st Year Tax Savings ($125,000 - $37,310 = $87,690) $87,690

7. Tax Savings: Tax Lease Tax Leases: Attractive to companies that continually update equipment Lessee wants use of equipment without ownership and may return it at lease-end Tax lease is not considered debt and does not appear as debt on the tax return, making the lessee’s balance sheet more attractive to traditional lenders Tax Benefit: Deducting 100% of lease payments as an expense lowers a businesses' taxable income Monthly Lease Payment$1,000 Lease Term36 Months Total Amount Financed$36,000 Monthly Tax Savings$350 ($1,000 lease payment x.35 tax rate =$350) Tax Savings Over Life of Lease$12,600 ($350 x 36 months = $12,600) Cost of Equipment After Tax Savings:$23,400 $36,000 financed–$12,600 savings=$23,400 vs $36,000

8. Lease Versus Cash Lease versus Cash8% Return15% Return Cash Investment$36,733$50,284 Cost of Leasing($31,050) Gain by Leasing$5,683$19,234 Time Value of Money Time Value of Money: The value of money based on where/when it’s invested. 1. CASH: Consider investing $25,000 in a 5 year investment with an average return of 8% (second example shows 15% return). After 5 years, the $25,000 = $36,733 or $50,284 with a 15% return. 2. LEASE: In comparison, finance $25,000 in equipment via a five year lease with a monthly payment of $517.50 and an end of the lease option of 10%. The cost to lease, not including the 10% option is ($517.50 x 60) = $31,050.

9. Financing Will Boost Your Business! Conclusion: What are the most important things to remember in the previous examples? Equipment financing is vital to a company’s cash flow, tax situation, and bottom line profits. With financing, you can cover the complete solution to your needs including “soft costs” such as installation, training, shipping, sales tax, etc. where a loan may fall short, leaving you to come up with a large cash outlay. Financing allows you to acquire better, high-end equipment for minimal change in a monthly payment Businesses recognize the value of equipment comes from its use, not necessarily it’s ownership Lease payments are a 100% tax-deductible expense for your business!

10. Equipment Financing by Nationwide Business Credit, LLC Contact Nationwide Business Credit, LLC today and begin our simplified application process to get the equipment you need for your business! Contact: Justin Pearce Nationwide Vendor Accounts 9861 Irvine Center Drive Irvine, CA 92618 jpearce@nbc-llc.com www.nbc-llc.com jpearce@nbc-llc.com www.nbc-llc.com 800.770.3638 | Toll Free Main 800.455.9108 | Toll Free Fax 949.681.8891 | Direct 949.681.8886 | Fax