Chapter 1. Introduction				1

Part One: Background
Chapter 2. Leases and Loans: Classification Issues				11
	Understanding Lease Classifications			12
	Leases and Loans for Federal Income Tax Purposes			14
		Implications of lease or loan treatment		14
			Finance lease or conditional sale lease	14
			True lease	15
		Rules for classifying as lease or loan		15
		What if we get it wrong?		18
	Leases and Loans for Financial Reporting Purposes			19
		A brief history of leasing accounting		20
		Implications of lease or loan treatment		22
			Operating lease--lessee	23
			Direct finance lease--lessor	23
			Capital lease--lessee	26
		Rules for classifying as lease or loan		27
		What if we get it wrong?		28
	Leases and Loans for Uniform Commercial Code Purposes			29
		Implications of lease or loan treatment		30
		Rules for classifying as lease or loan		31
		What if we get it wrong?		33
	Summary			35
	Review Questions			35
Chapter 3. Why Small Ticket Leasing is Different				39
	Key Reasons Why Legal Issues are of Lesser Importance			40
		Form driven		40
		Type of lease		41
		Creditworthiness of lessee		43
	Summary			45
	Review Questions			46

Part Two: Documentation Issues
Chapter 4. Key Lease Contract Provisions				47
	Key Contract Provisions			50
		Master lease/schedule language		50
		Rent description		50
		Late fee		51
		Equipment description		51
		Equipment location		51
		Security deposits		52
		Hell or high water clause		52
		Lessor assignment		52
		Lessee sublease or assignment		53
		Conspicuous warranty disclaimer		54
		General indemnity		54
		Taxes		55
		Income tax indemnity		55
		Maintenance provisions		55
		Insurance provisions		56
		Event of loss		57
		Default provisions		58
		Return provisions		60
		Purchase/renewal options		60
		UCC Article 2A		60
		Additional lessor duties		61
		Lessee statements		61
		Further assurances		61
		Choice of law/consent to jurisdiction		62
	Summary			62
	Review Questions			63
Chapter 5. Additional Lease Documents				66
	Commitment Letter			66
	Lease Summary Sheet			69
	Guaranty			69
	Vendor-Related Agreements			76
	Broker-Funder Documentation			76
	Lessee Certificates			77
		Secretary's Certificate		77
		Good standing certificate		79
	Landlord/Mortgagee Waivers			80
	Insurance Certificates			80
	TRAC Documents			81
	Summary			82
	Review Questions			83
Chapter 6. Financial Elements in a Lease				85
	Lease Payment Elements			85
		Lease commencement		86
		Length of lease term		87
		Billing frequency		88
	Lease Payment Structures			90
		Straight-line or level payments		90
		Accelerated payments		91
		Decelerated payments		92
		Custom payment structures		94
	Yields, Rates and Profitability			95
		Yield		96
		Implicit interest rate		96
		Rate		98
		End position/residual value		99
			Fair market value purchase options	100
			Fixed price purchase options	101
			End of lease renewal option	102
	Less Common Lease Provisions			102
		Buyouts		102
		Add-ons/master leases		103
		Upgrades		103
		Government leases		104
	Summary			105
	Review Questions			107
Chapter 7. The Lease Package				110
	The Credit Decision			111
		Undesirable lease transactions		114
	Completed Application			115
		Basic information		115
		Information on principals		117
		Credit references		118
		Trade references		118
		Bank references		118
	Equipment Description			120
	Transaction Summary			122
		Background and history		122
		Purpose of the lease		122
		Collateral evaluation		123
		Customer's future prospects		123
		Primary and secondary sources of debt repayment		123
		Comments section of the transaction summary		124
	Business and Personal Documents			124
		Business documents		124
		Personal documents		125
	How to Avoid Problems			125
	Summary			126
	Review Questions			127
Chapter 8. The Documentation Process				131
	Contingencies Cleared			131
	Correct Name of Debtor/Lessor			131
	Invoices			131
	Sales Tax			132
	Commitment/Documentation Fee			132
	Purchase Orders			132
	Shipping Date			132
	Document Signing			132
	Advance Rental Check			133
Part Three: Selling Leasing
Chapter 9. Benefits of Leasing to Lessees: The Evidence				134
	Does the Economy Affect Leasing Attitudes?			135
	Propensity to Lease Among Small Firms			138
		Does organizational form influence leasing?		138
		Does company size affect leasing?		139
		Does leasing depend upon years in business?		140
		Is leasing related to owner experience?		141
		Is lease usage affected by credit risk?		142
	Survey of Small Business Administration Winners			143
		Benefits of leasing		143
	Leasing In the Lodging Industry			144
	Financing Strategies for Start-Up Companies			146
		Start-up strategies		146
		Start-up attitudes toward leasing		147
			Increased cash flow	148
			Balance sheet management	148
			Obsolescence	148
			Burn rate	149
	Leasing in the Commercial Truck Market			150
		Full-service lessees--why we lease		151
		Finance lease lessees--why we lease		151
	Summary