Municipal Lease or Bond Financing of Equipment and Vehicles

COMMERCIAL FUNDING NETWORK, INC

1-800-503-1972

1-212-658-9003 fax

"independent financing for your business growth"

Commercial real estate mortgage, commercial equipment lease financing, merchant cash advance

PO Box 9584

Niskayuna, New York 12309

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Municipal Lease:

INTRODUCTION

ELIGIBLE AGENCIES

FAQ

LEASE vs BOND

WHAT IS TAX EXEMPT?

MUNICIPAL LEASE vs. BOND COMPARISON

Lease/Purchase Agreement transactions are placed with a single investor, with an average maturity of about 5 years. Sizes run from around $10,000 to $millions – depending on the useful life of the asset, transaction size and essentiality of the equipment. Vehicles and office equipment are typical items being financed.

Other advantages:

100% Financing including delivery, installation and sales tax (where applicable).

Cost effective – Nominal associated origination costs, if any.

Equipment and Real Property may be financed on a Lease/Purchase Agreement.

Flexible payments: Monthly, Quarterly, Semi-Annual, Annual or Delayed Payments.

No Reserve Accounts are required.

Uncomplicated documentation!

Financing Characteristics and/or Requirements	Public Bond Offering	Direct Source Financing	Why “NO” is the Better Answer
Compliance with SEC	YES	NO	Disclosure rules do not apply
Exact Rates Unknown Prior to Closing	YES	NO	Rates quoted before funding. Rate lock option available.
Underwriter’s Fees	YES	NO	No additional fees
Rating Agency Fees	YES	NO	No additional fees
Printing Costs	YES	NO	No additional fees
Reserve Fund	YES	NO	Not required
Prepayments only on Call Dates	YES	NO	Prepayment options throughout term.
Multiple Investors	YES	NO	Private Placements
Semi-Annual Only	YES	NO	Payment Schedule designed to meet your needs.
Time Consuming Documentation Process	YES	NO	One simple process

Acquire the equipment you need without Disclosure. Beginning July 3, 1995, an amended SEC Rule 15c2-12 governing disclosure obligation of municipal securities issuers and obligor went into effect. The new Rule was designed to protect investors by ensuring adequate ongoing disclosure of information relating to the financial health of the issuer and obligor.

The Rule increases the complexity of debt issuance in the public market.

Direct source financing is not subject to disclosure requirements

Copyright © 2010 Commercial Funding Network, Inc.

P.O. Box 9584, Niskayuna, New York 12309-0584

Telephone: 518-346-2115 Fax: 212-658-9003

Revised: March 01, 2010