American Leasing, Inc. General Equipment Leasing

Vendor Programs

CREDIT decisions are made either the same or the day following submittal. Additional time may be required for large leases.

LESS WORK ON LEASES AND MORE TIME ON SALES for the entire sales staff. ALI will interface with your customers and do all the follow-up work.

IMMEDIATE PAYMENT TO YOU within forty-eight hours of customer acceptance of the equipment and receipt of your original invoice.

TRAINING ON HOW TO CLOSE WITH THE LEASE is available for your salespeople. This is an effective closing tool for sales presentations.

CUSTOM LEASES can be structured when needed. Industries which are seasonal or cyclical prefer a lease structured so that payments are due when revenues are highest.

RESIDUALS ARE DISCLOSED up front. ALI will provide, at the customer's request, a side letter stating a specific end of lease residual. This allows for all lease costs to be known.

TRADE-IN / TRADE-UP allowance is available only to you, as the original vendor. This unique program allows you to keep repeat business with your present clientele. Other vendors of similar products will not have this competitive edge. Call ALI when this feature is needed.

LEASE STRUCTURES

TRUE LEASE
Obsolescence risk and Tax benefits make this the most popular commercial lease. The "True Lease" allows the Lessee to expense lease payments, thereby reducing tax liability.

Larger companies will always use the "True Lease" when trying to acquire the use of equipment under "operating budget" or when trying to limit "alternative minimum tax" liability. Smaller firms will use the "True Lease" when trying to control tax liability.

Generally Accepted Accounting Principals (GAAP) and Internal Revenue Service Code require "Fair Market Value" purchase options on the "True Lease". It's also usually accounted for "off balance sheet" in the financial statements. If the Lessee options to purchase the equipment at the end of a lease, he may then capitalize the purchase and take further deductions.

CAPITAL LEASE
Often referred to as "Conditional Sales Contract". Although not as popular as the "True Lease", the Capital Lease is used where the Lessee has "pride of ownership" or wants all costs known up front.

Capital leases are accounted for much the same as loans. The lessee usually capitalizes the lease and assets, then deducts only the "implicit interest" portion of the payment and depreciation. This lease usually has a $1.00 Purchase Option or fixed purchase option know as a "Put". The capital lease is usually "on the balance sheet", and usually does not allow as favorable financial statement presentation needed for other bank borrowings.

CUSTOM QUOTES
Available for Municipalities and other governmental entities.

Potential Lessees are advised to contact their CPA for detailed information on accounting and tax guidance if they have any question. Financial Statement conditions have considerable effect on GAAP and IRS requirements.

LEASE CREDIT CRITERIA

**$15,000 or LESS**
TWO YEARS IN BUSINESS (Under the same ownership) CLEAN TRADE REFERENCE BANK AUTHORIZED TO RATE (Low four figure average balance with at least a two year satisfactory history.) CLEAN PERSONAL CREDIT HISTORY

**LESS than $75,000**
THREE YEARS IN BUSINESS AND ALL OF THE ABOVE REQUIREMENTS!!!

**$75,000 or More**
COMPLETE FINANCIAL PACKAGE
Including: Two Year End Financial Statements Current Interim Financial Statement Two years Tax Returns Other Information As Requested

HOW YOU GET PAID

Lessee Credit Approved

Lease Agreement Signed

Lessee Signs "Acceptance"

American Leasing, Inc.
Issues Purchase Order

Vendor Sends Invoice
to American Leasing, Inc.

Vendor Delivers
Equipment Now

Lessee Verbally
Confirms "Acceptance"

American Leasing, Inc.
Processes Lease

You Get Paid
Invoice Amount NOW

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