We see tremendous growth prospects for the RTO segment into 2008 and beyond. Some lenders are more cautious with their view on the rent-to-own segment. We take the view that the rent-to-own space is vibrant and growing and we are actively seeking to build a business in this industry.
Hugh W. Connelly, President, Vanguard Leasing

Vanguard Leasing, Inc., a nationwide equipment finance company, announced today it has formed a new division dedicated to the Rent to Own (RTO) industry. The new division, RTO Funding, will support the financing needs of the RTO segment.

Capitalizing on its experience in the rental segment, Vanguard has products that allow Rent to Own companies to acquire the inventory they need now and then roll the financing into amortizing term loans locking in a positive monthly cash flow.

Commenting on the industry, Vanguard's president Hugh W. Connelly stated, "We see tremendous growth prospects for the RTO segment into 2008 and beyond. Some lenders are more cautious with their view on the rent-to-own segment. We take the view that the rent-to-own space is vibrant and growing and we are actively seeking to build a business in this industry."

"We will be staffing up the new RTO Funding division over the coming months but are actively doing business today," added Connelly.

Connelly said RTO Funding offers rent to own dealers an opportunity to work with a financial partner who will take the time to understand their business. "We have the capital to help the largest RTOs and the hands-on credit experience to also help the 'mom and pop' stores."

"We look at more than just an applicant's credit score," added Connelly. "We look at monthly store revenue, utilization rates, cash flows and store valuation as part of our approval process. That means every RTO owner has an opportunity to grow their business with intelligent capital supporting them. We don't 'do deals', rather we build relationships."

RTO Funding Product Offering:
RTO's line of credit product offers the perfect funding vehicle. It enables RTO owners to acquire inventory and then deploy it in a cost effective manner. Speaking on topic, Connelly stated, "I believe that RTO Funding is the only finance company that offers fixed and floating rate term funding. That flexibility puts the funding control in the hands of the RTO owner."

The RTO Funding advantage extends well beyond just inventory financing. "We are savvy business professionals. We advise on buy/sell transactions and can then also provide the capital for acquisitions and growth. When you choose RTO Funding you get far more than just inventory financing."

Product Benefits:
A funding line with RTO Funding will boost cash flow for a growing business says Connelly. "Most inventory lenders want to fund for a short timeframe, well below the life of the inventory purchased. Our product gives an RTO owner the opportunity to buy now, convert the inventory into earning assets and then match the cash flows of the rental to the amortization of the debt. Sounds simple, but this is a new product for this industry. We make our own credit decisions, we have our own funding and therefore, we can build industry specific solutions. RTO Funding is just one more example of Vanguard's common sense approach to funding at work."

Vanguard Leasing, Inc. is a national finance company located outside of Philadelphia, PA. The company operates in all 50 states and is backed by a multi­billion financial services company. Vanguard holds its own paper and is self funded. Vanguard operates under the trade names: VOB funding (financing the needs of Veteran Owned Businesses), Vanguard Public Finance (financing equipment for state and local governments), NA Public Finance (financing the needs of Native American Indian Tribes), Sino Capital (financing Chinese equipment manufacturers) and now RTO Funding (financing the needs of rent-to-own companies).