CUSTOMER ADVANTAGE

100% FINANCING - No down payments are required. A check for the designated advance payment only is required upon execution of the lease.

ELIMINATION OF BUDGET WORRIES - Leasing allows the acquisition of capital equipment through the budgeting of a monthly payment.

TAX SAVINGS - Lease payments are fully deductible for tax purposes resulting in a lower after tax cost. Lease payments are deductible over a period equal to the lease term, which is normally shorter than the standard 5 or 10 years recovery period. This results in accelerated write-off. Also, the monthly deduction is not subject to AMT (Alternative Minimum Tax).

PRESERVATION OF WORKING CAPITAL - Leasing allows the customer to retain cash for current needs or for other investment purposes.

CONSERVATION OF CREDIT LINES - By leasing equipment, the customer retains their available lines of credit at other financial institutions for emergency needs, current cash flow purposes, investments and other loans.

EASE OF OPERATIONS - Customer is now consolidating various costs, i.e. equipment, maintenance, taxes where applicable, delivery and installation charges, software, etc. into one monthly invoice.

ACTS AS A HEDGE AGAINST INFLATION - Lease payments are fixed and therefore are not subject to inflationary increases. The net cost of a lease will then decrease relative to revenues, which will increase during inflationary times.

EQUIPMENT UPGRADE - Leasing has the flexibility to upgrade the equipment at any time during the lease term, providing the freedom from the worry of possible obsolescence.

See your authorized E.L.S. Representative for more information

TAX BENEFITS

The primary reason profitable companies lease their equipment is to utilize tax benefits. In 1986 the tax reform act eliminated many deductions, but lease payments are still 100% tax deductible.

No A.M.T: Alternative Minimum Tax recalculations originally designed for huge corporations by the Government to avoid hefty ?tax sheltering? are now being calculated for the small business as well. Since leasing is considered ?off balance sheet? financing, your investment will not be subject to AMT, which is likely to cost you thousands of dollars annually.

Accelerated Depreciation: When you pay cash for equipment, you must depreciate the equipment over 5 1/2 - 10 years according to the IRS guidelines for high-tech equipment. Leasing accelerates depreciation allowing you to swiftly recapture your investment over the term of the lease (1 - 5 years).


30 Day Return on Investment: Because your out of pocket money is significantly less, you will realize a return on your investment sooner.

Simplicity: Our procedures are streamlined to save you time and effort. A lease application is generally completed within 15 minutes. You do not have to fill out lengthy forms, or even leave your office.

100% Financing: In addition to the equipment cost, applicable sales tax, freight charges and service contracts can be included in your lease. All items then become part of your fully tax deductible lease payment.

Conserve Working Capital and Credit Lines: By leasing equipment, you retain available lines of credit at other lending institutions and preserve working capital for other investments, emergency needs, overhead, etc.

Elimination of Budget Restrictions: Equipment Leasing Specialists, Inc, can create a lease term and monthly payment to fit into virtually any budget. This will allow the acquisition of capital equipment with little capital expenditure.

Flexibility: Under the E.L.S. Leasing Program, you may upgrade your equipment without penalty, or add-on equipment to an Existing lease. Add-on billing will comply with your original lease.

Simplifies Bookkeeping Procedures: Since lease payments are fully deductible, there is no need for lengthy amortization schedules which separate principle and interest, nor is there a need to account for each separate deduction.

Fixed Rate Financing: Lease payments are based on fixed rates and therefore, not subject to inflation. It is also easier to plan budgets based on fixed monthly payments.

Consolidated Billing: You can utilize the benefits of leasing for all you equipment needs.

We specialize in office, industrial and medical financing. Simply call us with the details of any of your planned purchases.

Leasing Terminology
The following is a list of commonly used leasing terms with descriptions based on standard equipment leases in the U.S. leasing industry.

Lessor
The party that owns the equipment, technically the owner of the asset. ie..lending institution or bank.

Lessee
The party that will use the equipment, until the term is completed.

Lease
A legal contract where the owner (lessor) gives another party (lessee) the right to the use of equipment for a term of time in exchange for scheduled payments.

FMV - Fair Market Value
The assessed value of equipment based on actual market demand.

Purchase Option
A residual that allows the lessee to purchase the equipment at the end of the lease. The residual price may be stated at a specific amount or at a fair market value.

True Lease or (FMV Lease)
A lease, is where the lessee has the option to purchase the equipment at fair market value, renew the lease (payments based on fair market value), or return the equipment to the lessor. An FMV lease provides tax advantages because the lessee can fully claim the lease payments as a business expense, thus lowering the businesses taxable income. The lessor, as the owner of the equipment receives the benefit of claiming depreciation on the equipment. An FMV lease, offers the benefit to be passed on to the lessee in the form of lower payments.

TRAC Lease
A TRAC lease is designed for commercial vehicles and trailers that generate revenue for a business. At the end of the term, the vehicle may be purchased for a pre-specified amount (usually 10-20%) or sold to a third party. If it is sold to a third party for more than the pre-specified amount, the lessee keeps the profit. If it is sold for less than the pre-specified amount, the lessee must still pay the specified amount to the lessor. This "adjustment clause" allows the lessee to fully claim the lease payment as a business expense thus lowering the businesses taxable income.


Certificate of Acceptance or also known as (Delivery and Acceptance)
A document whereby the lessee acknowledges that the equipment has been delivered, installed correctly and is acceptable for use. Also, approving that the equipment has been manufactured and or built to specifications.

Sale-Leaseback
Is a lease transaction that allows a business to turn an equipment purchase into an equipment lease. The lessor buys the equipment and becomes the equipment owner. Doing a transaction of this nature can produce cash flow for the business, but allows the business to continue to use the equipment.

Residual Value
The current value of an asset at the end of a lease term.

Master Lease Agreement
A contract that allows a lessee to acquire capital asset for the business.

Equipment Schedule "Exhibit A"
A document that describes in detail the equipment being leased.

Broker
A company or person who arranges lease transactions between a lessee and a lessor, on behalf of the lending institution.