Leasing for Installation and Touring Sound Systems

JBL PROFESSIONAL OFFERS ONLINE LEASING FOR INSTALLATION AND TOURING SOUND SYSTEMS

NORTHRIDGE, CA - MAY 15, 2001 - Working with finance professionals around the world, the Financial Services department of JBL Professional offers a wide range of methods for audio companies to purchase or lease JBL Professional speaker systems. One of the newest programs, with US Commerce Equipment Leasing, uses an online application that is accessed directly from JBL Professional's website, www.jblpro.com for the company's US customers.

Simply by going to the JBL Professional website or keying in www.jblpro.com/lease.html, you can find the details of the available programs and go directly to the online application form. This is linked to US Commerce Equipment Finance, who is able to offer flexible lease packages at competitive rates. An example of this flexibility is the use of skipped or delayed first payments for a specified number of months. This allows for a cash stream to start prior to lease payments being due for payment. Other options are available to help make the lease fit the financial needs of the applicant.

"A significant amount of the overall business of JBL Professional involves the purchase of large sound systems, for touring, rental sound systems and permanent installations. We have set up a wide range of versatile financial packages for our customers that allows them to obtain the best system possible using a lease or credit program that will meet their needs," states Lou Wilhelm, Director of Financial Services for JBL Professional. "These programs are especially crucial for our new VERTEC™ customers, who buy 24, 48, even 72 VERTEC enclosures , which we can put on a lease along with other Harman products such as Crown amplifiers, Soundcraft mixers and electronics from BSS and dbx."

These innovative leasing programs allow JBL Professional customers to customize a financial program to meet the particular needs of a new installation, new portable sound system, tour rig or other large application. Common uses of these JBL Professional leases include:

Tour Sound System, using JBL's VERTEC or HLA speakers , which may be combined with Crown amplifiers, and signal processing from BSS and dbx, all on the same lease.
Large purchases of JBL Installation products such as Control, Marquis, Sound Power, Venue and EVO series speakers for churches, schools, auditoriums, hotels, businesses, etc.
Major installations using JBL Custom Shop enclosures, such as stadiums, auditoriums, convention centers, arenas.
Cinema theatres, using ScreenArray™ and other JBL Professional two and three way and surround speaker systems, ideal for new and old theatres, upgrades or new digital systems.

"Leasing is the modern tool to gain the use of equipment. This method is employed because it eliminates large cash outlays required for outright purchases and allows these funds to be used for other investment purposes," explained Wilhelm. "Ownership of equipment alone will not produce revenue. It is the USE of equipment that is productive. When viewed from this perspective, leasing is frequently less expensive."

According to Wilhelm, there are many benefits that can be derived from leasing...

Conservation of Capital: Your cash remains untouched and available for other operational and profitable purposes.
Tax Savings: The full cost of leasing can often be treated as an expense deduction for income tax purposes and may result in a larger tax deduction than if you were claiming a depreciation expense. This can mean substantial tax savings and improved cash flow. Talk with your accounting professional about the potential impact for your business.
Better Terms: Lease payments may be extended at fixed rates over a longer period of time than conventional bank financing. Leases can also be arranged without large down payments.
Leaves Bank Lines of Credit Untouched: Normally a lender will not reduce a line of credit when equipment is leased. When the equipment is financed, it consumes available credit.
Cleaner Balance Sheet: Lease payments may be entered as footnote items on a balance sheet and may not increase your liabilities as a loan does. This is important when obtaining additional credit.
Helps Overcome Budget Limit: Since a lease is generally treated as an expense rather than a capital expenditure, room in the budget can often be more easily created for monthly rentals.
More Liberal Credit Criteria: In many cases a lease can be completed when conventional bank or other financing may not be possible.
Convenience: Applications are sent to JBL Professional or our website. We make sure that your application is processed in a timely manner. In most cases you do not have to deal with the lease company. We do the work for you.

For more information on this leasing program and other available financial programs, contact Lou Wilhelm at JBL Professional, 818-894-8840 or by email to lwilhelm@harman.com.