Seeing financing in a new light

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1 Seeing financing in a new light Managing capital budgets is no easy task. Every department seems to have a unique opportunity they want to pursue or a pressing problem that has to be solved. Opportunities and problems cost money and yet your budget is fixed and there is only so much to go around. Comprehensive financial solutions for commercial & government projects How do you decide what projects gets prioritized and what projects get funded. How do you decide how much they get? A Smarter Way of Doing We understand the tough financial decisions you have to make. That s why we ve created OneWorld. Financing your equipment and expansion solutions through OneWorld is an easy way to optimize your capital budget. With competitive rates, a wide range of flexible terms and financing options, and a team of finance professionals to assist you every step of the way, OneWorld can help you acquire the equipment and solutions you need at a price you can afford while conserving cash for other operational aspects of your business. Competitive rates that help you acquire the products & services you need regardless of vendor at a price you can afford. Eliminates technology obsolescence and solves disposal issues in an environmentally friendly manner By using OneWorld, you ll receive these benefits & capabilities: SIMPLE: Financing for transactions as low as $5,000 Automated credit assessment processes to expedite approvals Electronic delivery of all financing quotes and proposals Rapid turnaround on all financing requests SMART: Single source financing hardware, software & services, from any vendor Competitive rates and flexible terms and conditions Simple, easy-to-understand, easy-to-execute contracts Streamlined process to eliminate time and paperwork A dedicated team of financing professionals to assist you and your clients with any questions EFFECTIVE: Leasing provides your clients with the following benefits Lower total cost of ownership (TCO) Preserves cash and other credit lines for other core business initiatives Requires no upfront cash expenditures Provides a single payment plan across all hardware, software & services Improves ROI by matching payments to the useful life of the solution Eliminates equipment obsolescence and asset disposal issues Enables technology refreshments with little or no increase in monthly payments For a financing quote please call x240

2 Benefits You Can Expect From OneWorld Leasing provides organizations with a variety of benefits. For your convenience, we have summarized these advantages into four (4) categories: Financial Advantages: Conservation of (Working) Capital Leasing enables you to finance 100% of your acquisition hardware, software, services, insurance, taxes, etc so that little of no money is needed upfront. This conserves your cash so that it can be used for other business purposes such as expanding sales, new marketing programs, quantity discounts, increasing inventory or opening a new line of products and services. Preserves Other Credit Lines Leasing enables you to acquire the solutions your require without impacting the other credit lines you have established. These lines are therefore available for working capital, seasonal requirements, other appreciating business opportunities or emergencies. Leasing essentially enables you to have another line of credit without negatively affecting your bank or other lending relationships. Hedge Against Inflation With lower, fixed-rate payment of an equipment lease, you are protected against inflation. With leasing, cash outlays are deferred as compared to an upfront purchase. Inflation will lessen the cost of future lease payments since the payments will be made with cheaper dollars. You will be making your monthly payments with ever-inflating dollars thereby essentially reducing the cost of your financing. Beneficial Terms & Structures Most bank loans require large down payments, compensating balances, additional collateral or restrictive covenants. Typically banks are not as flexible with their payment schedule and routinely tie the financing to a floating interest rate that can cause your payments to rise as interest rates increase. Cash Flow Advantages: Improved Cash Flow Instead of one substantial payment (purchase), the cost of your acquisition is spread over a number of regular monthly payments. Customized Payment Schedules Lease payments can be customized to fit the unique needs of your business including seasonal downturns, project roll-outs, cash flow and budgetary requirements. Once established, these payments remain fixed for the term of the contract. As such, you are protected against payment volatility thereby enabling you to manage your cash flow more effectively. Cost Alignment & Efficiency Its advantageous to pay for equipment as the asset delivers value and benefits to your business. Your payments can be structured to match the useful life of the equipment as it operates within your company. Equipment Advantages: Enhanced Purchasing Power Nearly any type of equipment can be obtained through leasing. You decide what you want, who you want it from and we ll provide the funding to complete the transaction. You are covered by all of the manufacturer s warranties and because your monthly payments are low, you can acquire more of the equipment you need or more advanced technology for the same investment dollars.. Protection Against Obsolescence When you lease, you are never tied to outdated machinery, technology or software. Your end-of-lease options enable you to (a) return the equipment to the leasing company, (b) purchase the equipment for an agreed upon amount or (c) renew or extend your lease for a specific period of time. Should you need to upgrade your equipment during the term of the lease, your leasing company can easily amend your original agreement to accommodate your requirement. Easy Equipment Disposal At the end of the lease, provided you have properly taken care of it and it is in good working order, you can return the equipment to your leasing company. This enables you to avoid all disposal issues; state and federal government regulations and retirement costs. Accounting Advantages: We recommend that you consult your accountant to determine how any or all of these benefits may apply to your organization. Tax Advantages Operating leases are generally treated as fully deductible direct operating expenses, which means a lower taxable income. In addition, equipment leasing can be a tool to avoid certain negative impacts of of the Alternative Minimum Tax. Sales / Use Tax Deferrals With a purchase, sales tax must be paid in full at the time of purchase. With most types of equipment leasing, sales / use tax is paid over the time that the equipment is being used (except in IL, MN, NJ & DC). This can result in substantial cash savings in the first year of the lease. Financial / Balance Sheet Ratios Larger companies often have a need to maintain certain debt-to-equity ratios or comply with debt covenants. Operating lease do not show on the balance sheet as liabilities and the equipment is not counted as an asset, thereby keeping your ratios unaffected. In addition to the above benefits, OneWorld makes it easy and convenient for you to acquire the products and services you need. We can package all of your requirements hardware, software, services and other soft costs into a single agreement featuring low monthly payments and maximum flexibility. Our staff of financing professionals will work closely with you to make your financing transaction a positive and pain free experience with NO SURPRISES!

3 Why Lease? Some things to consider when acquiring new equipment By financing your equipment and expansion solutions through OneWorld, your organization can: Acquire state-of-the-art technology with minimal investment and with predictable, manageable payments Conserve valuable capital by spreading the cost of technology over time thereby preserving lines of credit and freeing capital for other investments Reduce your Total Cost of Ownership by managing assets within a coordinated long-term plan Simplify budgeting by using Operating Expense dollars to acquire capital equipment Protect against obsolescence and financial risk enabling upgrades as they are needed without requiring another large capital investment Maximize flexibility by matching payment schedules to cash flow, budget and ongoing business requirements Simplify technology acquisition with a fast, easy documentation process and the ability to combine hardware, software and services into a single periodic payment Considering a bank loan? You might want to consider some of the trade-off s you potentially will have to make when utilizing a bank line or note. Lease 100% Financing OneWorld can include hardware, software & professional services in a single lease Loan Selective Financing Most banks only want to finance hard assets. This requires you to pay all other charges upfront along with any down payment the bank required Lease vs. Loan? Low Up Front Costs OneWorld only requires the first monthly payment in advance.. Fixed Monthly Payment, Locked in Interest Rate Once the lease is started, the interest rate and the schedule of monthly payments is fixed & predictable Flexible Terms & Conditions OneWorld offer many different terms and can structure payments to meet your cash flow requirements and / or accommodate slow business cycles. High Up Front Costs Banks traditionally require 20% up front Floating Interest Rates, Variability in Payments Banks use floating interest rates. As such, customers can t predict what their monthly payments will be since the payments rises when interest rates go up Cross-Collateralization Banks loans often hold your business & personal bank accounts as collateral for your loan limiting your flexibility. If a bank perceives a down-turn in your business, they can call your loan forcing you to pay all outstanding balances immediately Please consult your Sales Representative or contact one of our OneWorld Representatives at x240 or us at lharkrider@oneworldbusinessfinance.com

4 Benefits You Can Expect From OneWorld If you are acquiring equipment, expanding, or renovating, OneWorld financing program is the perfect way to optimize your organization s capital budget. With competitive rates, a wide range of leasing options, a dedicated team of finance professionals to assist you and the ability to finance hardware, software and services from any vendor on a single contract, our program can help you acquire the equipment and expansion solutions you need at a price you can afford. Additionally, when you finance through OneWorld, you ll also enjoy these benefits as well: Benefits of Leasing Through OneWorld Simple Smart Conservation of Capital Leasing allows a company to conserve capital for investment in its business rather than in the infrastructure required to run it. Leasing typically requires only a small down payment or deposit. Thus, you are able to preserve valuable credit lines and cash resources for growth initiatives within your company. Increased Purchasing Power Leasing enables you to do more with less. Leasing stretches your available budget dollars so you can acquire the latest technology and more equipment. Maximizing your budget in this fashion contributes to a lower overall cost of ownership and provides your employees with the essential tools and capabilities they need to be successful. Value and Expense Alignment Unlike purchasing which requires payment on delivery or at installation often ahead of the productive use of the equipment - leasing enables you to align the value you receive from the equipment you ve acquired with the monthly payments you make. With flexible terms of 24, 36, 48 and 60 months, you can pick the payment plan that best matches your project needs or revenue generation milestones. Effective Risk Elimination Your requirements are constantly changing. Leasing enables you to take advantage of the latest technology without the fear of your equipment becoming obsolete. With wide variety of end-of-term options, leasing eliminates all asset disposal issues while enabling you to rotate and refresh your equipment in a logical fashion and on a scheduled basis. Please consult your Sales Representative or contact one of our OneWorld Representatives at x240 or us at lharkrider@oneworldbusinessfinance.com

5 Benefits You Can Expect From OneWorld If you are acquiring equipment, expanding, or doing renovations, OneWorld s financing program iare the perfect way to optimize your organization s capital budget. With competitive rates, a wide range of leasing options, a dedicated team of finance professionals to assist you and the ability to finance hardware, software and services from any vendor on a single contract, our program can help you acquire the electrical and lighting solutions you need at a price you can afford. So does leasing make sense for your business? Only you can decide but look below to see what your fellow executives said when the Equipment Leasing Association (ELA) surveyed business owners participating in a United States Small Association study. Benefits Of Leasing Cited By SBA Participants 70% 60% 50% 40% 30% 20% 10% % Benefits of Leasing Cited By SBA Participants 1. Ability to have the latest equipment (65%) 2. Consistent expenses in budget planning (35%) 3. Helps manage company growth (30%) 4. No down payment (30%) 5. Increase cash flow (20%) 6. Lower cost (20%) 7. Convenience (15%) 8. Customized solutions (15%) 9. Other (15%),tax advantages,off-balance sheet 10.Maintenance options (10%) 11.Asset management (10%) 12.Transfer risk to lessor (5%) SBA participants response to Is leasing equipment a good business strategy for meeting the demands of a small company? Agree Somewhat (60%) Is Leasing Equipment A Good Strategy For Meeting The Demands Of A Small Company? Disagree Somewhat (20%) Agree Strongly (20%) Disagree Somewhat (20%) Disagree Strongly (0%) Agree Strongly (20%) Agree Somewhat (60%) (Source: SBA U.S. State Small Winners Equipment Leasing & Survey) Please consult your Sales Representative or contact one of our OneWorld Representatives at x240 or us at lharkrider@oneworldbusinessfinance.com