Cindy Grimes

1
FUNDING SOLUTIONS CAN ASSIST YOU IN ACQUIRING
EQUIPMENT TODAY

• Cindy Grimes
• Area Manager
• December 8, 2005

2
Who is Avaya Financial Services

• AFS is the worlds largest telecom lessor
• Over 3 Billion in Assets
• Annual funding volumes in excess of 700 million
• Avayas funding partner. AFS offers its
  customers the ability to acquire equipment
  through seemless integration with Avaya sales and
  services
• AFS has in-depth knowledge of Avaya products and
  offers industry leading funding solutions to its
  customers

3
The BIG Questions

• I want to take advantage of the latest technology
  today, but how am I going to budget for this or
  pay for it?
• I have a limited IT budget, I would like to
  upgrade my equipment, but how am I going to get
  everything I want on my limited budget?
• The equipment is more expensive than I have
  budgeted for therefore do I cut other IT
  expenses to acquire this equipment, or delay the
  acquisition until the funds are budgeted, or buy
  less than what I really need?
• My budget this year does not allow for any
  equipment upgrades, so how do I acquire the
  technology today and pay for it next year?

4
AFS Offers

• AFS can work with you to structure a funding
  solution that fits within your budgetary
  limitations
• Payments can be deferred until budget monies
  become available
• 90 days/120 days Same as Cash offers which
  allow you to acquire the equipment today, have no
  payments for 90 or 120 days then pay for the
  equipment for same as cash price
• Step payment structures which allow you to pay
  what your budget allows for today, then increase
  your payments as more budgetary funds become
  available

5
AFS Offers

• AFS structures its funding solutions in the form
  of a lease. Leases can be either
• Capital Lease customer owns equipment at the
  end
• Operating Lease equipment is owned by AFS with
  an option to renew, return or purchase at the end

6
AFS Offers

• AFS offers short term funding solutions
• 90/120 day same as cash (no interest)
• 18/24/36 month capital or operating leases
• 3 semi-annual payments and title transfers to the
  customer
• Interest free 18 or 24 month funding solutions
  for qualified customers
• AFS offers long term funding solutions
• 36, 48, 60 month terms
• Payments can be deferred upfront to accommodate
  budgetary constraints
• Payments can be made monthly, quarterly,
  semi-annual or annual depending on your needs
• Interest free funding solutions for qualified
  customers.

7
What all can I fund through AFS?

• New equipment equipment upgrades
• Avaya Services
• Avaya Maintenance
• Wire Cable
• Software
• Installation

8
Why Lease?

• Overcomes budget limitations
• Addresses the question how am I going to pay for
  it?
• Technology Refresh
• Keeps your business abreast of current technology
• Upgrade and Product Migration Programs
• Continuous investment in state of the art
  technology
• Lifecycle Investment Protection
• Hedges against obsolescence
• No upfront costs or heavy down payments
• Financial solutions that complement technology
  solutions
• One stop shopping advantage

9
Leasings Financial Implications

• Improves Cash Flow
• Balance Sheet Management
• Manages Obsolescence
• Tax Positions
• Helps with Asset Management
• 100 Financing
• Fast
• Convenient

10
AFS Funding Solutions Create Buying Power

• EXAMPLE
• Customers lease today is 8000 per month. No
  additional budgetary monies are available,
  however, customer wants to refresh their
  technology. How can this be done?
• Solution The existing lease is collapsed and
  refinanced thus creating buying power. If the
  refinance payment equals 2500 per month, then
  the buying power would be 5500 per month or
  183,000 over a new 3 year term. The payment
  stays the same at 8000 per month, the customer
  acquires 183,000 in new equipment.

11
AFS Funding Solutions Create Buying Power

• Example
• Customer is currently paying networking charges
  of 9000 per month today. Customer would like to
  replace or upgrade their equipment to the latest
  technology, however the funds are not available.
• Solution
• By improving or refreshing the technology and
  networking the telecommunications equipment,
  network charges may decrease dramatically. If
  network charges were to decrease to 2500 per
  month in this case, this creates buying power of
  6500 per month or 367,000 of buying power.
  Cash outflow per month remains at 9000 per month
  (2500 toward networking charges and 6500 to AFS
  to fund the new equipment).

12
HOW CAN A FUNDING SOLUTION ASSIST YOU?

• Allows you to acquire new technology today
• All risk of obsolescence is transferred to AFS
• AFS manages the disposal of outdated equipment
• Flexible payment options
• Keeps you abreast of current technology
• Allows you to conserve cash for other projects
• Preserves credit lines and working capital in the
  business
• Allows you to pay for the equipment as it
  generates income for the business (pay as you
  go)

13
Questions?

• Avaya Financial Services
• Cindy Grimes
• Tel [phone]
• Email cindy.grimes_at_afsleasing.com