One-third of all domestic equipment acquired is leased and more than 80% of U.S. corporations lease some or all of their equipment. Obviously, leasing is an advantageous alternative to traditional financing.

Specific Benefits of Leasing:

• Preserves Cash - You only pay for the use of the asset, not for the ownership. This avoids tying up capital in assets. Your cash can then be used to support working capital requirements due to growth, or maintain liquidity for seasonal, cyclical, or investment needs.

• 100% Financing - You receive 100% financing, eliminating the need for a down payment. You can use this cash elsewhere in your company for expansion.

• Cash Flow/Budgeting - You receive longer-term, fixed-payments, and potentially lower payments if the lessor receives the tax benefits of ownership.

• Alternate Source of Capital - Your existing bank lines of credit, which are limited, are not impacted. Also, leasing is a less restrictive form of financing. Quite often leases are completed without personal guaranties or restrictive covenants.

• Off-balance Sheet Source of Funds - You can improve ROE, ROA, and many other financial ratios by utilizing leasing instead of traditional finance methods.

• Tax Advantages - You may avoid certain tax limitations. Operating lease payments are expensed and, as opposed to depreciation, do not contribute to Alternative Minimum Tax exposure. Leasing may also allow you to avoid mid-quarter depreciation penalties.

• Equipment Obsolescence - You avoid the risk of owning equipment that is no longer technologically useful or valuable. The lessor assumes this risk.

• Flexibility and Convenience - You can include many services in the lease payment, such as insurance, maintenance, and taxes. Leasing generally involves less "red tape" and time than conventional financing. Additional equipment can be acquired without renegotiating existing loan covenants. Creative structures also are available to meet your specific needs. Moreover, flexible payment schedules that include skip payment, "high-low", "step payment", and many other structures can be created to match your specific needs.

• Avoids Capital Budgeting Constraints - You can acquire needed equipment outside of the capital budget. Lease payments usually are paid out of the operating budget.