• For transactions less than $100,000 USD, only signed customer applications are required. Additional information such as financial statements may be requested if required.  
• For transactions of $100,000 USD or more, 2 years of financial statements are required.

Estimated Transaction Processing Timelines

Customer Qualification Guidelines

Microsoft Financing is available to commercial customers only.

Start-up companies in business for less than 2 years will require some form of credit enhancement (For example: Bank Letter of Credit, Parent Company or third party guaranty).

• Exceptions can include new companies created out of a merger or acquisition from an existing company with a business history.
• On a case by case basis some transactions can be approved as an exception

Companies could potentially be declined due to negative trends, which may include:

• Consecutive years of losses or a history of losses from operations.
• Negative cash flow from operations; inability to cover loan payments from cash flow.
• Negative Tangible Net Worth (liabilities exceed tangible assets), high leverage (liabilities over assets is high).
• History of slow payments, defaults (non-payment) or bankruptcy for either the company or the primary owners.
• A going concern statement in the companies audited financial statements.

Exceptions will be considered if there is a business rationale for deviating from these guidelines. Exceptions include:

• Recent events that would reduce the risk (i.e. major investment in the company, sale of unprofitable division, etc.)
• A credit enhancement (Guarantor, Bank Letter of Credit, Deposit) is provided by an acceptable source.

Microsoft software and services-only financing may be considered as a way to facilitate part of an offer where the customer's credit risk prevents financing the entire transaction. To be considered for high risk software-only financing, the following rules apply:

• Only Microsoft software and services products will be considered eligible and must be at least $50,000 USD of the total financed solution.
• Only 24 or 36 month financing terms will be allowed.
• Interest rates will be higher than for standard credits, usually 2-4% higher and these customers will not be eligible for promotional rates.

Increased Section 179 Expensing for businesses: Now up to a maximum of $250,000 in 2008

And!

50% first year bonus depreciation: IRS provision applies to software placed in service before January 1, 2009

• Combine tax savings with a Microsoft Financing Offer: Acquire new software solutions today and improve your IT environment while deferring the cash outlay
• Drive business productivity up!
• Enjoy current year tax savings: Improve current year profitability and cash flow while leveraging the benefits of increased future productivity that results from the deployment of new assets

Example of 50% Bonus Depreciation in Action

• Spend $300K on upgrading software
• Software is treated under tax law as having a 3-year recovery period for depreciation purposes
• Bonus depreciation on $300,000 at 50% is $150,000.00; an additional $50,000 is allowed representing 1/3 the remaining $150,000
• Total tax depreciation for 2008 is $200,000!
• 2008 tax savings is $64,000.00 ($200,000 x 32%) assuming a 32% marginal Federal Income Tax rate
• Without bonus depreciation: A business could only claim depreciation in the first year of $100,000 (1/3 of $300,000)