Credit Guidelines

(a checklist for innovators)

Here are some general guidelines for use by prospective LTI Venture Leasing customers. They reflect how our investment committee judges the merits of prospective applications.

Management: A strong core management group with proven performance record and a high level of integrity.

Investor Support: Reputable venture capital or angel backers and/or corporate sponsors who are presently supporting the customer.

Market Prospects: Promising or proven set of products/services capable of establishing strong market positions.

Business Forecast: Well articulated business plan, projections and reliable recent financial statements.

Credit References: Trade and credit references (minimum of three) revealing payment histories consistent with industry practices.

Liquidity: Liquid assets and/or cash flow to cover overhead requirements and debt obligations for a period that typically ranges from 9-18 months, depending on the equipment mix and term of the proposed lease.

Capitalization: We look for a positive net worth inclusive of subordinated debt and long term shareholder notes. Consideration is given to commitments made for future equity fundings by reputable angel investors, venture capitalists and/or corporate partners.