Most web sites advertising Lease Advisory Services are trying to get you to lease from them.  LD Bailey is NOT a leasing company.  We are one of the few companies that actually offers Lease Advising Services and advises you about who, what, where, when, and how to lease without trying to sell you anything!
Our Lease Advisory Service:

Consider these common leasing oversights:

Sarbanes-Oxley / FASB 13 Operating Lease Compliance:

"The Boeing Company failed to achieve federal operating lease treatment for its proposed $23 billion lease of 100 Boeing KC-767A aerial refueling tankers last year. That failure contributed to the deal’s high-profile termination by the Secretary of Defense." See: Report of the Congressional Budget Office (CBO) to the Honorable Don Nickles, Chairman, Committee on the Budget, dated August 26, 2003.  Patton Boggs LLP

There are 4 key criteria required to qualify a lease as an operating or "off balance sheet" lease (See FAS-13, pg 8):

The Catch!    An example: If you lease electric lift trucks from a manufacturer, usually included is at least one battery and a battery charger.  A battery's useful life is somewhere between 3,000 and 5,000 operating hours.  The lift truck that it powers has a useful life of something like 12,000 - 15,000 operating hours.  The lease term is set to accommodate the lift truck's life.  By definition, 100 percent of the asset (battery) will be used up before the end of the lease term violating criteria 4 above and forcing the ENTIRE lease to be treated as a CAPITAL LEASE.

We have saved our clients tens of millions of dollars of exposure to balance sheet reclassification!

Do you have Sarbanes-Oxley penalty exposure due to mis-reporting?

Lessors are in the business of making money!

"...leased assets must also be tracked to ensure (1) lease expirations are recognized, and (2) the delivery of replacement assets is well coordinated with lease termination.  Early or late termination can cost a premium..."  
Debra Darty, Sourcing Consultant - Georgia-Pacific Corporation, from "Lease vs. Buy Analysis: Real-Life lessons you don't want to forget"

"...89% of our lessees elect to purchase or re-lease their equipment at the completion of the initial lease term.  Generally a lessee purchasing the equipment will pay a price substantially greater than the wholesale value of the equipment."   from ATEL Capital Group Fund X Brochure

The Catch!   Every time you extend leases for convenience or pay additional month-to-month payments, the lessor's investment yields increase dramatically and as both quotes indicate above, you, the lessee will pay a substantial premium.

We have reduced lease extensions by approximately 15% resulting in hundreds of thousands of dollars per year in unnecessary lease-related costs!

Do you know exactly when your leases end?

Even standard lease documents are complicated!

"Lease contracts are traditionally standard documents created by the lessor written for the benefit of the lessor's organization and usually will contain requirements and clauses that can be very detrimental to the lessee's organization." Joe Polance CPM, American Suzuki Motor Corporation

The Catch!   There are at least 8 ways a lessor makes money on a lease. All but one (Purchase Price markup) are dependent on "special language" or documented terms and conditions.

We find an average of $2,500 - $5,000 per piece of equipment in unnecessary lease and maintenance costs for our clients.

Do you know where to look?

© 2005 LD Bailey & Associates, Rev. 6-20-06

Lease Audit

We will:

 º Compile and systematize all lease information from diverse sources
 º Review your current lease strategy in detail
 º Establish optimal equipment specifications based on conditions
 º Determine the best approach for equipment maintenance
 º Determine the most appropriate lease terms
 º Find lease sources that match your situation
 º Handle your Requests for Quotation (RFQ)
Lease Advisory

Which leasing company will provide the optimum lease rate, term, contract, billing terms and surrender conditions?

º We help with the request for proposal
º Sourcing
º Lease process management
Lease vs. Buy Analysis

This is not your usual Lease / Buy calculation...

 º We determine what should be leased and what should be bought
 º We determine which type of lease fits your financial situation
 º The same asset might be leased or purchased depending on use

Services Pricing:

"Fee-for-Service" - We typically bill on a time-and-materials basis.  Our hourly rates are modest and vary based on the type of activity involved - data entry, analysis, administrative, etc.  No matter the activity, we stand behind our money back guarantee below.

"Gain-Sharing" - Sharing in the savings creates a long-term, collaborative relationship with our clients.  We will establish clear definitions of savings and benchmark your current position to make the most accurate savings calculation possible.  We are willing to share the risk.

"Free Lease Survey" - We would be happy to provide a free Lease survey in which you provide a complete list of equipment, financing details (lease copies and/or internal purchase guidelines), utilization information (hour meter or mileage readings within a time period), operating environment description, and maintenance cost data. Then we will produce a summary and preliminary review giving you an idea of the cost savings opportunities available.  The purpose is to place the risk of finding savings on LD Bailey rather than forcing you to purchase consulting services sight unseen.

Our Money Back Guarantee:
"We guarantee that we will locate savings opportunities in excess of our fees or
THERE IS NO CHARGE."
(On average, we find 8 - 12 times our fees in savings. We are confident of finding savings!)

© 2005 LD Bailey & Associates, Rev. 6-20-06