What is a Lease?

A lease is simply an agreement by a customer (Lessee) to pay monthly/quarterly rent for a specific amount of time for the right to use equipment and/or furnishings owned by a lessor. The customer does not own the property during the term of the lease, however, at the end of the lease, the lessee will have the option either to buy, re-lease or return the property to the lessor. Leasing is a powerful and flexible tool; powerful because there are many different kinds of leases and variety of structures for each. Thus, a lease can be tailored to meet almost any need.

WHO LEASES?	WHAT IS LEASED?
All American Business             Fortune 1000 Companies	Business equipment
80% of all businesses, and 70% of Fortune 1000 companies lease some of the equipment they use.	Of the estimated $130 billion of equipment to be leased this year, nearly 40% of it will come in categories familiar to all businesses: audio/video and broadcast equipment, telecommunications products, computers, office equipment, vehicles, furniture and fixtures.

Theory Behind Leasing

Any business must choose from financial opportunities which yield the highest return. Leasing allows a business to take advantage of additional opportunities, while managing cashflow and conserving capital for expenses which cannot be leased -- i.e., employees, tenant improvements, marketing, etc. Therefore, it makes sense for any business to extend its dollars by choosing some type of financing alternative. When a company acquires new equipment and furnishings, it does not necessarily bring immediate profits but does bring profits over time. Why pay for equipment upfront when it makes financial sense to pay over time?

Why Lease

•Leasing conserves valuable working capital, making it available for use where it can produce the best return. Leasing also leaves you with more available cash for use when you really need it.

•Leasing leaves your existing bank lines and other credit sources untapped, leaving them available for working capital and other uses. Leasing allows you to maintain access to funds for short term needs or unexpected opportunities, and keeps capital liquid for emergencies or for further expansion. Leasing also avoids many restrictions found in typical bank loan agreements.

•Your lease payments may be 100% tax deductible. (A lessee may be able to amortize the cost of equipment faster through tax deductible rental than through depreciation and after-tax cash flow, helping you keep more money.) Consult your tax specialist or attorney for potential deductions applicable to your situation.

•Leasing covers all equipment and furnishing costs. No need to arrange other financing sources. Additional expenses such as installation, maintenance, freight and taxes may be covered in the lease and amortized over the lease period. Leasing provides 100% financing of the "true" cost of your equipment.

•Lease contracts can be tailored to meet cash flow requirements for your company.

•Leasing protects against obsolescence. Because lease payment schedules can be written to mirror equipment value curves, the cost of moving on to the latest technology can be controlled. Leases may be written to include options for "no penalty upgrades", so that your equipment is always "state-of-the-art". Therefore a company choosing to lease can enjoy the use of equipment without assuming the risk of either functional or technological obsolescence.

•Leasing allows affordable monthly or quarterly payments in most cases. Lease-to-own options are available, providing accurual of equity and ownership of equipment at end of term.

•Agreements may be for 3, 4, 5, or up to 7 years, with payment schedules to fit your needs.

•Leasing is an answer if your problem is finding financing for capital equipment replacement. Nobody knows more about film projection and sound system equipment than Cinema Equipment Sales of California Inc. With our leasing agreements tailored to your specific needs, you can obtain the latest cinema equipment and furnishings.

•We supply projectors, lamphouses, lenses, stereo digital sound equipment, screens and all other accessories for film projection; and seating and lobby furnishings and equipment.

Example Payments

The following are examples of leases of 36 months in length.

Equipment costs of $5,000 approximate payments would be $169 a month

Equipment costs of $15,000 approximate payments would be $499 a month

Equipment costs of $50,000 approximate payments would be $1,629 a month

Leases of longer lengths, such as 48 or 60 months would have even lower monthly payments.

HERE is the best leasing agent that we have dealt with to date.