Advantages of Leasing

1. Frees working capital for more productive uses since leasing provides up to 100% financing.

2. May cost less than other financing alternatives.

3. May provide faster tax write-off.

4. Avoids restrictions often contained in loan agreements.

5. Permits 100% financing (including tax, freight and installation) vs. 75 – 80% through other methods.

6. May not appear as a liability on the lessee's balance sheet thus providing "off-balance sheet" financing.

7. Does not disturb present bank credit lines.

8. Provides a hedge against inflation (equipment is paid for in "cheaper" dollars).

9. Is more flexible in meeting the lessee's needs than conventional financing (longer terms, etc.).

10. Does not dilute ownership or control (as would a sale of common stock or bringing in a new partner to provide necessary funds).

11. Provides a new credit source.

12. Book earnings may be higher with a lease.

13. Provides fixed rate financing.

14. Overcomes capital budged restrictions (lease payments may be expensed in the operating budget).

15. May be a hedge against obsolescence.