When contemplating financing or leasing new Ditch Witch directional drilling equipment there are numerous considerations for you as a contractor. Variations in loan and lease products can serve to complicate purchasing decisions and the credit process can be ambiguous and sometimes perplexing. To help you better understand the credit process and choose the financing option that is right for you, Ditch Witch Financial Services (DFWS) has provided the following information on credit underwriting and what you should consider when financing or leasing directional drilling equipment:

Credit considerations. In addition to industry standard credit underwriting guidelines, DWFS looks to an applicant’s industry experience, comparable borrowing histories, and the financial condition of the business when making underwriting decisions. Providing your lender with sufficient financial disclosure and ample details on the underground construction contract will help greatly to expedite the credit process. When you apply for credit you may be expected to provide all or some of the following:

    * Credit application
    * Financial statements
    * Work on hand
    * Owner’s info (if corporation or LLC)
    * Contract details (basic info such as feet per week or annual amount of contract)
    * Bank and trade references

Whether to Finance or Lease?

Carefully considering the following questions can help determine whether financing or leasing equipment best suits your particular business objectives:

    * Which is more important for you: ownership of equipment, or equipment utilization with less monthly operating cost?
    * How often do you trade your equipment?
    * Will future underground construction jobs necessitate ¿trading up¿ to newer or different equipment in the near future?
    * Would leasing more equipment opposed to financing allow you more productivity to perform more underground construction jobs?
    * As a corporate taxpayer, are you in an Alternative Minimum Tax (AMT) or Net Operating Loss (NOL) situation?
    * Do you need special transaction structure to match seasonal revenue patterns of your particular business?
    * Is limiting debt leverage a strategic financial objective for your business?
    * Is control of out-of-pocket cash more or less important than equity in equipment?

If the following are important to you or fit your objectives you may want to consider a loan:

    * Monthly level payments, or varied payment plans including skip payments, seasonal payments or accelerated payments.
    * Duration of use of equipment is over a number of years or you will have jobs that will require the use of the same piece of equipment.
    * Ownership of equipment¿ building equity.
    * Physical damage insurance to be included in the monthly cost of financing.
    * Depreciation of the equipment cost and deduction of interest expense associated with equipment.

If the following are important to you or fit your objectives you may want to consider a lease:

    * Lower monthly payments than traditional financing.
    * Lower initial out of pocket down payment cost.
    * Continually trading in/up for new equipment.
    * Equipment ownership not a key interest.
    * Deduction of equipment payment as a monthly operating expense.
    * Equipment maintenance cost included in monthly payment.

Ditch Witch Financial Services (DWFS) DWFS is a highly competitive finance program intended to give Ditch Witch customers, small to large, the best financial service available in the industry.

One Size Fits All Available to all qualifying Ditch Witch customers, DWFS provides competitive rates and seasonal programs to small, medium or large businesses.

One Stop Shop DWFS provides you with the best options available in terms of financing your new Ditch Witch equipment. And all without ever leaving the dealership.

So whether you are a rental company, landscaper, general contractor, plumber, electrician, or any other user of Ditch Witch products, ask your local participating Ditch Witch dealer about DWFS for the best financial service available in the industry. Offering the right finance plan to fit your business

Finance Options Monthly-Level Plans Purchase equipment over time with payments that remain constant throughout the term. Skip-Payment Plans Better match your cash flow to your monthly cost by scheduling skip payments throughout the year.

Accelerated Payment Plans Consider an accelerated pay program that enables you to build equity in the machine faster -- during the first few payments.

Rental Purchase Transaction Try the machine before you buy and build equity while you rent.

Customized Lease Options Lease plans designed exclusively for Ditch Witch equipment provide comprehensive leasing options, including fixed dollar and fair market value purchase options.

Whether you are looking for a capital or operating lease, we will work with your dealer to customize a program to meet your specific needs.

Responsive Credit Decisions Credit decisions are provided as quickly as possible, because we know you need the equipment now.

Automatic Payment Plan Avoid late payment charges and protect your good credit rating. It’s quick and easy. Your monthly payment can be paid automatically from your business checking account.

For more information on financing and leasing Ditch Witch directional drilling equipment, please contact DWFS 866-218-8051, option 6, contact your local Ditch Witch dealer or visit www.ditchwitch.com.