Lease vs. Bank Note

leasing is corporate America's largest external source of equipment finance. It is larger than bank loans, larger than bonds, larger than stocks, and larger than commercial mortgages. It is the fastest growing form of business investment. Over $75 Billion of equipment was leased in 1984 and $194 Billion leased during 1998. More companies, particularly small companies, acquire new productive equipment through leases than through loans. Of the $697 billion spent by business on productive assets in 2001, $216 billion, or 31 percent, was acquired by American businesses through leasing. In 2002, that figure is estimated at $204 billion. The projected 2003 volume is $208 billion.

(Source: The Leasing Professionals Handbook, U.S. Dept. of Commerce, Economics and Statistics Administration, Bureau Of Economic Analysis and Equipment Leasing Association of America.)

For more information on how leasing can help you acquire equipment or software call: Milton W. Talkington (National Accounts) Omni Funding 888-268-OMNI (6664)

Lease vs. Bank Note
	Leasing	Bank Finance
Term:	Up to 5 yr	Usually 2—3 yr
Down Pmt.:	2 Pmt's Approx. 5%	Typically 20%
Soft Cost:	Includes: Installation, Training, Shipping	Usually 0%
Monthly Investment:	Fixed Monthly	Can be floating
Tax:	Operating Expense Monthly	Depreciation could take up to 7 years
Financial Statement:	Footnote to Balance Sheet; No Impact Ratios	Long term liability reduces current ratio's & increases debt ratio
Opportunity Investment:	Leaves bank borrowing or current capital free for investments or other opportunities	Ties up bank borrowing, preventing more opportunities
Lien Treatment:	UCC Filing on leased equipment only	Blanket lien for ALL guarantor assets!

For more information on how leasing can help you acquire equipment or software, call: 888-268-OMNI