A Partnership Program for Capital Equipment Financing

Here’s how it works:
American Iron will provide you the capital necessary to purchase (new or used) machine tool equipment from participating partner ORCA, Inc. You, in turn, agree to sell American Iron your scrap metal for recycling. The value of your scrap metal is used to repay the cost of the equipment.

Who owns the equipment?
You do. You account for the transaction as if you paid cash for the machine tool. Although the transaction is subject to applicable sales tax, the machinery can be capitalized and depreciated on your books in the same way as it would on a cash basis.

How is the machinery paid for?
You contract to sell American Iron your scrap metal. The initial price you receive for your scrap will be discounted until the cost of the machine is amortized. The discount and time period will vary depending upon the value of the scrap, the rate at which it is generated, the cost of the machine, and the length of the contract.

What happens after the equipment is paid off?
After the machine is paid off, American Iron will continue to buy your scrap metal at market levels, or you may opt to build up a balance to apply toward the purchase of additional equipment.

Where do I obtain the equipment?
You must purchase your selection from ORCA, Inc., a Minneapolis-based national supplier of new and used machinery.

Talk to your American Iron or ORCA Account Executive and find out how we can help your company add capital equipment without capital expense.

AMERICAN IRON 2800 Pacific Street North Minneapolis, MN 55411 (612) 529-9221 fax (612) 529-2548 www.scrappy.com

ORCA, Inc. 5480 Nathan Lane North, Suite 134 Minneapolis, MN 55442 (612) 509-9888 fax (612) 509-9889 www.orca-inc.com