Frank & Ron Hotel-Motel Supply, Inc.

Cash Payment

Equipment Financing

Rate

No traditional interest owed; however, must consider

the cost of capital and depletion of cash for future

purchases

Fixed for the entire term of the contract

Down Payment

100% of cost deducted from vital working capital

No down payment required and 100% financing available

Credit Impact

Does not contribute to building effective credit history

that may be needed to secure future lines of credit

Builds positive credit history by reporting to

commercial credit agencies

Lines of Credit

Less cash on hand may reduce access to credit lines

Frees up cash for future use

Turnaround Time

Complete ownership immediately, assuming all risk and associated costs

Less than one hour

Maximum Loan Amount

Cash payment may make it difficult to secure any future

loans, having spent capital needed for repayment and

any necessary down payment or collateral

Amount based on ability to repay

Soft Cost Coverage

Requires an outlay of capital prior to receiving benefits

of purchase minimizing ROI

All soft costs can be financed