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Advent Capital Services, Inc. ACS  is a premier provider of life science, health service, vendor, commercial, and public service finance solutions.  10/19/2009 1 ACS - Adding Value to Vendor Services
Leasing Activity by Company Size (Source: Equipment  Leasing and  Finance Assoc. data 2006/2007 survey detail) 10/19/2009 2 ACS - Adding Value to Vendor Services
Propensity to Lease Leasing accounts for nearly 1/3 of all externally  financed equipment in the U.S. $186 Billion of $598 Billion  (Source: Equipment Leasing and Finance Assoc. data 2006/2007 survey detail) 8 out of 10 of businesses lease The average U.S. business acquires $200,000 in new equipment every year The average U.S. business leases $82,500 in new equipment per year 10/19/2009 3 ACS - Adding Value to Vendor Services
Propensity to Lease Why Lease? Preserve Bank Lines Improve Cash-Flow Management Realize Applicable Tax Advantages Spread Cost of an Asset Over Its Useful Life Eliminate Rate Fluctuation Risks with Fixed Payments 10/19/2009 4 ACS - Adding Value to Vendor Services
Type of Financing based on Equipment Type(Source:  ELFA  data 2006/2007 survey detail)  % Lease 	% Loan	% LOC ,[object Object]
2) Office Machinery		32%	5%	14%
3) Trucks/Trailers		24%	28%	15%
4) Communication Eq.		22%	4%	21%
5) Software			19%	4%	21%
6) Furniture & Fixtures	18%	3%	19%

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Propensity to Lease

  • 1. Advent Capital Services, Inc. ACS is a premier provider of life science, health service, vendor, commercial, and public service finance solutions. 10/19/2009 1 ACS - Adding Value to Vendor Services
  • 2. Leasing Activity by Company Size (Source: Equipment Leasing and Finance Assoc. data 2006/2007 survey detail) 10/19/2009 2 ACS - Adding Value to Vendor Services
  • 3. Propensity to Lease Leasing accounts for nearly 1/3 of all externally financed equipment in the U.S. $186 Billion of $598 Billion (Source: Equipment Leasing and Finance Assoc. data 2006/2007 survey detail) 8 out of 10 of businesses lease The average U.S. business acquires $200,000 in new equipment every year The average U.S. business leases $82,500 in new equipment per year 10/19/2009 3 ACS - Adding Value to Vendor Services
  • 4. Propensity to Lease Why Lease? Preserve Bank Lines Improve Cash-Flow Management Realize Applicable Tax Advantages Spread Cost of an Asset Over Its Useful Life Eliminate Rate Fluctuation Risks with Fixed Payments 10/19/2009 4 ACS - Adding Value to Vendor Services
  • 5.
  • 10. 6) Furniture & Fixtures 18% 3% 19%
  • 13. 9) Construction 8% 40% 5%10/19/2009 5 ACS - Adding Value to Vendor Services
  • 14. Commercial Customers ACS Offers: Master Lease Line or Project Financing Solutions Experienced Financial Analysis Customized Financing Structures Equipment, Software & Furniture Financing Solid and Clear Presentations Supporting ROI 10/19/2009 6 ACS - Adding Value to Vendor Services
  • 15. Public Entities ACS Tax Exempt Lease Purchase Financing Removes Burden Associated with Complex Resource Allocation Procedures Supports Balanced Budget Initiatives Preserves Capital Dollars for Other Projects Avoids Creating Long Term Debt Obligations Spreads the Cost of an Asset Over Its Useful Life Eliminates Rate Fluctuation Risks with Fixed Payments 10/19/2009 7 ACS - Adding Value to Vendor Services
  • 16. ROI Analysis Solid & Clear Presentations Supporting ROI - Example - 1. Current end-user’s usage expense for existing solution, etc ....……………$1,200/mo. 2. Projected reduction in expenses with new equipment........................…….$500/mo. 3. ACS est. monthly payment for new equipment ……………………….…..…......$1,100/mo. 4. Net Savings: $1,200 plus 500 less $1,100/mo. lease payment ….……........$600/mo. Immediate Monthly Savings provides an ROI with no capital outlay 5. Savings over 60 months, with no capital outlay…............. $36,000 over life of asset *60 months x $600/mo. 10/19/2009 8 ACS - Adding Value to Vendor Services
  • 17. Net Present Value & Economic Value Added Net Present Value (NPV) An NPV of zero signifies that the project’s cash flows are sufficient to repay the invested capital Direct relationship between NPV and EVA (economic value added to business) Positive NPV = Positive EVA NPV Calculation (based on previous example) $29,175 Savings in Present Dollar Value ($50,000 Cash Outflow year 0; 60 months Cash Inflow at $1,700/mo; plus residual value of equipment of $5,000 at termination. Based on est. 12% Return on money) 10/19/2009 9 ACS - Adding Value to Vendor Services
  • 18. Advent Capital Services –Why Us? The ACSAdvantage: ACS helps Vendors close sales more quickly ACS will tailor customized solutions for Vendors ACS facilitates collaboration with your customers ACS removes barriers to customer’s purchases ACS provides clear presentations supporting ROI www.AdventCapitalServices.com1 (612) 867-7322 10/19/2009 10 ACS - Adding Value to Vendor Services