CSBFA Capital Leasing Project Report

October 2000

Table of Contents

•  Introduction
   
•  Part 1 - A Comparative Analysis of the Tax Advantages of a Capital Lease vs. a Loan From a Small Business Perspective
  •  Tax Treatment of Leases
  •  Goods and Services Tax
  •  Improved Cash Flow
  •  Improved Operating Ratios
  •  Flexibility of Lease Terms
  •  Numerical Analysis
  
   
•  Part 2 - An Analysis of the Different Administration Fee Rate Alternatives Under the Capital Leasing Pilot Project
  •  Objective
  •  Methodology
  •  Alternative 1
    •  Statistical Analysis of Variable Relationships
    •  Multicollinearity
  •  Alternative 2
    •  Average Fee Rate Based on Lease Term
  •  Alternative 1 vs. Alternative 2
  
   
•  Conclusion
  •  Impact of Administration Fees on Loss Amounts
  
   
•  Appendices
  •  Appendix A - Analysis of Leasing vs. Purchase Cash Flows
     
  •  Appendix A - Option A and B - Lease Amortization Template
     
  •  Appendix A - Option C - Loan Amortization Template
     
  •  Appendix A - Option D - Loan Amortization Template
     
  •  Appendix B
     
  •  Appendix B-1
     
  •  Appendix B-2
     
  •  Appendix C
     
  •  Appendix C - Continuation
     
  •  Appendix D