Enabling Your Sales GrowthThrough Competitive Financing

Enabling Your Sales GrowthThrough Competitive Financing

Types of Technology LeasesTypes of Technology Leases

Capital Lease $1 Buyout Finance Lease Higher Rate

Operating Lease Fair Market Value True Lease Lowest Monthly Cost

Capital Lease $1 Buyout Finance Lease Higher Rate

Operating Lease Fair Market Value True Lease Lowest Monthly Cost

Capital LeaseCapital Lease

Fixed monthly payments, with guaranteed bargain price to purchase the equipment at end of lease (usually $1)

Lessee considered the owner of equipment Assets carried on balance sheet and must be

depreciated

Fixed monthly payments, with guaranteed bargain price to purchase the equipment at end of lease (usually $1)

Lessee considered the owner of equipment Assets carried on balance sheet and must be

depreciated

Operating LeaseOperating Lease

Fixed monthly payments with several options at lease expiration:

Return equipment at end of term Purchase equipment for FMV at end of lease Continue leasing equipment at a lower rate

Lessee is “renting” the equipment from the Lessor (CSC)

Treated as a monthly expense Not reflected on balance sheet because it’s an

operating expense

Fixed monthly payments with several options at lease expiration:

Return equipment at end of term Purchase equipment for FMV at end of lease Continue leasing equipment at a lower rate

Lessee is “renting” the equipment from the Lessor (CSC)

Treated as a monthly expense Not reflected on balance sheet because it’s an

operating expense

Example Lease Comparison (based on actual client)

$1 Buyout Option:Amount Financed = $64,317.98

Monthly Payment

Lease Term

Term Cash Flow Buyout Total Cash Flow

$2,168 36 mo $78,048 $1 $78,049

CSC Leasing Options:Amount Financed = $64,317.98

• Fair Market Value (FMV) – Operating Lease Structure

Monthly Payment

Lease Term

Term Cash Flow Estimated FMV Buyout

Total Cash Flow

$1,897 36 mo $68,292 $9,300 $77,592

Option 1: Buyout Equipment at End of Term

Option 2: Extend Lease by 12 Months (Ownership transfers to client at end of extension)

Monthly Payment

Lease Term

Term Cash Flow

$1,897 36 mo $68,292

Extension Payment

(Based on FMV)

ExtensionTerm

Extension TermCash Flow

Total Transaction Cash Flow

$817 12 mo $9,804 $78,096

$9,300

Estimated FMV

Option 3: Return Equipment at End of Term with No Further Obligation* Often exercised when upgrading equipment

Monthly Payment Lease Term Term Cash Flow

$1,897 36 mo $68,292

Why use an Operating Lease?Why use an Operating Lease?

Preserving Cash Flow- free up cash and credit lines for other projects

Lowest Cost for Use of Technology Flexibility- Leases can be appended at any time

throughout term to suit customer needs Maintain a Competitive Edge - With technology

changing faster than ever, FMV leases allow companies to stay on the forefront of technology and avoid obsolescence

Preserving Cash Flow- free up cash and credit lines for other projects

Lowest Cost for Use of Technology Flexibility- Leases can be appended at any time

throughout term to suit customer needs Maintain a Competitive Edge - With technology

changing faster than ever, FMV leases allow companies to stay on the forefront of technology and avoid obsolescence

What does this all mean to YOU?What does this all mean to YOU?

Opportunities for repeat business at end of lease Measure of control within account

Another valuable option in your proposal to help win the deal, increase the size of the deal, & another opportunity to get back in front of client

Streamline your commissions We pay upon acceptance of equipment

Ability to add equipment to lease Grow with the customer- many want/need to add equipment

as company expands Most of our clients are repeat customers

Opportunities for repeat business at end of lease Measure of control within account

Another valuable option in your proposal to help win the deal, increase the size of the deal, & another opportunity to get back in front of client

Streamline your commissions We pay upon acceptance of equipment

Ability to add equipment to lease Grow with the customer- many want/need to add equipment

as company expands Most of our clients are repeat customers

Simple Process – Improving Your Productivity:Simple Process – Improving Your Productivity:

Analyze the proposed hardware and soft costs Create the Proposal (reseller tools) Get the Signed Proposal Credit Approval and Final Terms PO placed – ship to client – bill to CSC You Install CSC obtains Acceptance Certificate CSC pays you

Analyze the proposed hardware and soft costs Create the Proposal (reseller tools) Get the Signed Proposal Credit Approval and Final Terms PO placed – ship to client – bill to CSC You Install CSC obtains Acceptance Certificate CSC pays you

iPad IncentiveiPad Incentive

Refer 100k in hardware that closes by end of quarter (Sept. 30th)

Bring CSC Leasing any number of hardware deals totaling 100k or more and receive a 16GB iPad2 or a $500 gift certificate to the Apple Store

If you close 200k or more in hardware business with CSC, you will be rewarded with a 64GB iPad2!

Refer 100k in hardware that closes by end of quarter (Sept. 30th)

Bring CSC Leasing any number of hardware deals totaling 100k or more and receive a 16GB iPad2 or a $500 gift certificate to the Apple Store

If you close 200k or more in hardware business with CSC, you will be rewarded with a 64GB iPad2!