Financial Solutions for Growth

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 its ownership

• Reasons Companies Finance

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.

5
Two Types of Leases

• For IRS purposes, a lease is either a
• Each has different tax benefits and end of lease
  options

6
Tax Savings Non-Tax LeaseNon-Tax Leases
Attractive to companies that want the tax
benefits of ownershipLessee purchases equipment
upon lease termination at a pre-agreed amount
1.00 Buyout, 10 PUT, SDBO, 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
7
Tax Savings Tax LeaseTax Leases Attractive to
companies that continually update
equipmentLessee 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 lessees
balance sheet more attractive to traditional
lenders Tax Benefit Deducting 100 of lease
payments as an expense lowers a businesses'
taxable income
8
Lease Versus Cash
Time Value of Money The value of money based
on where/when its 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.
Time Value of Money
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 companys 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 its 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 DriveIrvine, CA
  92618jpearce_at_nbc-llc.comwww.nbc-llc.com
• 800.770.3638  Toll Free Main800.455.9108 
  Toll Free Fax
• 949.681.8891 Direct949.681.8886  Fax