TECHNOLOGY COUNCIL OF GREATER PHILA.
FINANCING SEMINAR

What Are The Basic Functions Of A Leasing Company Fund software/hardware purchases in return for payment over time Take credit risk and software/equipment risk Provide tailored solutions to customers needs Proved a vendor the ability to offer the customer extended payment terms without having to finance the payments Why Your Customers Use Leasing 100% financing Preserve bank lines - or eliminate the need for a line Pay for software/equipment as they use it Payments fixed and do not increase with interest rates Avoid delays of capital budgeting process For the middle-sized company - convenience For the small or new company - an excellent source of funds Simple documentation What Is Software Leasing Method of paying for software over time instead of a single upfront payment The functional equivalent of a loan from the leasing company Structure that can be tailored to meet the specific needs of a customer What Can Software Leasing Do For A Software Company Shorten the sales process No upfront payment Offer convenience to your customer Remove capital budget delays Expand your customer base Better satisfy customer needs Tailor the lease to the need Improve your competitive and financial position Reduce your receivables and increase your cash Having a leasing program gives you a competitive advantage What To Look For In A Leasing Company Experience in leasing Experience in your business or the software/equipment Reputation, particularly for fair dealing Service Efficiency Financial strength or access to capital Competitive pricing How To Do Business With A Leasing Company Explain your business Software Characteristics Customer Characteristics Distribution Methods Pricing-Per Item and Average Plans for the Future Discuss if and how leasing might favorably impact your business Discuss how a leasing company will interface with your customers Discuss administrative aspects of the relationship What A Leasing Company Looks For - Ideally Acceptable credit risk Some risk protection from value of software/equipment or other collateral Acceptable return for the risk Potential upside from software/equipment at the end of the lease Maybe some tax benefits Some minimal level of business

© LPI Software Funding Group, Inc.  

593 Cricket Lane, Suite 200     Wayne, PA 19087  

610.687.4434      610.341.6100   sales@lpilease.com
                         February 27, 2006