SOURCE: Sparta Commercial Services, Inc.

March 01, 2010 09:05 ET

Sparta Forecasts 20% Growth in Its Municipal Lease Product for 2010

NEW YORK, NY--(Marketwire - March 1, 2010) -  Sparta Commercial Services, Inc. (OTCBB: SRCO) forecasts a twenty-percent rate of growth in its Municipal Lease Product during 2010. This projection is based on the growth experienced and figures achieved in 2009. Since expanding the asset classes that qualify for the Municipal Lease Product in September 2009, Sparta has received a noticeable increase in inquiries from manufacturers, vendors, dealers, and municipalities in various parts of the country and is pursuing those opportunities. The new asset classes eligible for the Municipal Lease Product include vehicles such as tactical armored units, electric-hybrid buses and police cruisers, and a wide variety of other essential equipment. As a result of the expanded Program and the growing volume of inquiries, the Company is anticipating the growth rate in its Municipal Lease Product will continue to accelerate throughout 2010.

The Municipal Lease Purchase Financing offered by Sparta allows municipalities to acquire vital equipment and property without requiring large, up-front cash outlays. As payments are made, the municipality maintains title ownership of the equipment, thereby building real equity in that equipment. Furthermore, because Lease Purchase Financing is not considered "Debt" for municipalities, only the current year's lease payments are required to be included in the operating budget. Municipal Lease Purchase Financing provides the opportunity for municipalities to acquire the equipment they need, especially while they are reacting to decreased annual budgets, resulting from lower tax revenues.

About Sparta Commercial Services: Sparta Commercial Services is a New York-based, nationwide financial services company dedicated to the powersports industry, offering financing and leasing products to consumers and retail powersports dealers, as well as a variety of commercial products for governmental agencies that require motorcycles and other equipment for law enforcement activities.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements are valid only as of today and we disclaim any obligation to update this information. Actual results may differ significantly from management's expectations. These forward-looking statements involve risks and uncertainties that include, among others, risks related to potential future losses, obtaining, satisfying terms of, and amount of credit lines, competition, financing and commercial agreements and strategic alliances, seasonality, potential fluctuations in operating results and rate of growth, management of potential growth, system interruption, consumer and industry trends, limited operating history, and government regulation. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved. Further information regarding these and other risks is described from time to time in the Company's filings with the SEC, which are available on its website at: http://www.sec.gov.

Contact Information

  • Contact:

    Dick Trotter
    COO
    Sparta Commercial Services, Inc.
    (212) 239-2666