| Loan Features | |
| Customers keep their monetary funds available for short term cash flow and working capital needs | |
| Customers retain depreciation and tax benefits, and accept the risks of ownership | |
| Competitive Rates | |
| Purchase is capitalized on balance sheet as an asset (could effect operating rations) | |
| Monthly payments are paid from after tax profits | |
| Upon completion of all payments, the equipment is paid for in full | |
| Loan Topics for Discussion | |
| Loans typically require down payments, additional collateral, or blanket lien filings | |
| May increase Alternative Minimum Tax (AMT) concerns | |
| Bank line availabilities | |
| May effect capital gain tax liability | |
| May violate bank loan covenants | |
| After years of usage, production efficiency drops and maintenance costs increase | |
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