FORM 10-QSB

                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D. C. 20549


             QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934


For the quarter ended:                      March 31, 2000

Commission file number:                     333-80429

                           Asset Servicing Corporation
                   -------------------------------------------
             (exact name of registrant as specified in its charter)

       Nevada                                                    75-2823489
----------------------                                           ----------
(State of Incorporation)                                        (IRS ID No.)


                709-B West Rusk, Suite 580, Rockwall, Texas         75087
      ----------------------------------------------------------- --------
               (Address of principal executive offices)           (Zip code)

Registrant's telephone number, including area code: 214-212-2307

Check whether the  registrant  filed all  documents  and reports  required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the  distribution  of
securities under a plan confirmed by a court. Yes [ ] No [ ].


Shares of common stock outstanding at March 31, 2000:

                                                      262,100


<PAGE>


                                TABLE OF CONTENTS



PART I - FINANCIAL INFORMATION                                       Page Number


         Item  1.          Financial Statements                            1 - 4

         Item  2.          Managements's Discussion and Analysis
                           of Financial Condition and Results of

                           Operations                                      5


PART II - OTHER INFORMATION                                                6













<PAGE>

<TABLE>

<CAPTION>

                           ASSET SERVICING CORPORATION

                                 BALANCE SHEETS

                      March 31, 2000 and December 31, 1999



                                ASSETS

                                                                              March 31, 1999     Dec 31, 1999
                                                                            ------------------------------------
<S>                                                                                 <C>                    <C>

    CURRENT ASSETS:
        Cash                                                                        $30,485                $116

    PROPERTY AND EQUIPMENT:
        Leased equipment (net of accumulated depreciation of $208)                    9,791

                                                                            ----------------    ----------------

    TOTAL ASSETS                                                                    $40,276                $116
                                                                            ================    ================




                 LIABILITIES AND STOCKHOLDERS' EQUITY

    LIABILITIES

         Accounts payable                                                            $1,073              $2,636
         Advances from affiliate                                                      2,234               2,991
         Lease deposits                                                                 416
                                                                            ----------------    ----------------
    TOTAL CURRENT LIABILITIES                                                         3,723               5,627

    STOCKHOLDERS' EQUITY
        Common stock, $0.001 par value                                                  262                 200
        Additional paid-in-capital                                                   64,338               2,300
        Accumulated Deficit                                                         (28,047)             (8,011)
                                                                            ----------------    ----------------
            Total Stockholders' Equity                                               36,553              (5,511)
                                                                            ----------------    ----------------

    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                      $40,276                $116
                                                                            ================    ================

</TABLE>












                                        1



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<TABLE>

<CAPTION>

                           ASSET SERVICING CORPORATION

                             STATEMENT OF OPERATIONS
                   Three months ended March 31, 2000 and 1999


                                                              Three months        Three months
                                                                  ended               ended
                                                               March 31, 2000    March 31, 1999
                                                             ------------------------------------
<S>                                                          <C>                 <C>

    REVENUE:                                                            $416                  $0

    OPERATING EXPENSE:
        Filing fees                                                    5,760                   0
        Professional fees                                              8,600                   0
        Promotion                                                      5,000                   0
        General and administrative                                     1,092                   0
                                                             ----------------    ----------------
            Total Operating Expense                                   20,452                   0

                                                             ----------------    ----------------

    NET LOSS                                                        ($20,036)                 $0
                                                             ================    ================


    Weighted average shares outstanding                              200,000             200,000
                                                             ================    ================

    LOSS PER SHARE                                                    ($0.10)              $0.00
                                                             ================    ================


</TABLE>










                                        2

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<TABLE>

<CAPTION>

                           ASSET SERVICING CORPORATION

            STATEMENT OF STOCKHOLDERS' EQUITY AND ACCUMULATED DEFICIT

             Period from inception (May 27, 1998) to March 31, 2000



                                                Common                    Paid In      Accumulated
                                        Shares           Amount           Capital        Deficit              Total
                                    --------------------------------------------------------------    ----------------
<S>                                         <C>                <C>         <C>            <C>         <C>

   Balance,
           May 27, 1998
           (date of inception)                  -0-             -0-           -0-             -0-                 -0-

   Shares issued on May 29, 1998 for:

              Services                      160,000             160         1,840                               2,000
              Cash                           40,000              40           460                                 500

   Net Loss                                                                                (2,323)             (2,323)

                                    --------------------------------------------------------------    ----------------
   Balance

           December 31, 1998                200,000            $200        $2,300         ($2,323)               $177
                                    ==============================================================    ================


   Net Loss                                                                                                    (5,688)

                                    --------------------------------------------------------------    ----------------
   Balance

           December 31, 1999                200,000             200         2,300          (2,323)             (5,511)
                                    ==============================================================    ================


   Sale of common stock                                      62,100            62          62,038              62,100

   Net Loss                                                                                                   (20,036)

                                    --------------------------------------------------------------    ----------------
   Balance

           March 31, 2000                   200,000          62,300         2,362          59,715              36,553
                                    ==============================================================    ================
</TABLE>













                                        3

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<TABLE>

<CAPTION>

                           ASSET SERVICING CORPORATION

                             STATEMENT OF CASH FLOWS
                   Three months ended March 31, 2000 and 1999




                                                                      Three months      Three months
                                                                        ended               ended
                                                                     March 31, 2000    March 31, 1999
                                                                   ------------------------------------
<S>                                                                <C>                 <C>

   CASH FLOWS FROM OPERATING ACTIVITIES:
       Net loss                                                           ($20,036)                 $0
       Adjustments to reconcile net loss to net
               cash (used) by operating activities:
                   Items not requiring cash - depreciation                     208
                   Decrease in current liabilities                          (1,904)
                   Rounding                                                      1
                                                                   ----------------    ----------------
   NET CASH (USED) BY OPERATING ACTIVITIES:                                (21,731)                  0


   CASH FLOWS FROM INVESTING ACTIVITIES:
       Purchase of assets to lease                                         (10,000)                  0

   CASH FLOWS FROM FINANCING ACTIVITIES:
       Sale of common stock                                                 62,100                   0

                                                                   ----------------    ----------------

   NET INCREASE IN CASH                                                    $30,369                  $0

   CASH, BEGINNING OF PERIOD                                                   116                 177
                                                                   ----------------    ----------------

   CASH, END OF PERIOD                                                     $30,485                $177
                                                                   ================    ================
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                                        4



<PAGE>


Item 2:           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                  CONDITION AND RESULTS OF OPERATIONS.


Results of Operations

The Registrant  filed a registration  statement on Form SB-1 with the Securities
and  Excahgne  Commission  which  became  effective  on January  24,  2000.  The
Registrant  has been raising funds under that  registration  statement and as of
March 31, 2000 has sold 62,100 shares at $1.00 per share. As of May 8, 2000, the
Registrant  had sold 87,425  shares.  Under this  offering,  the  Registrant was
authorized to sell a minimum of 50,000 shares and a maximum of 1,000,000  shares
at $1.00 per share.

In March 2000, the Registrant  raised the minimum amount under its  registration
statement and broke escrow.  Also in March 2000, the Registrant entered into its
first lease  whereby its  operations  according to its initial  public  offering
commenced.  The terms of the lease  effectively  give a 32% return on the monies
put  out.  The  Registrant  is  engaged  in the  leasing  of  manufacturing  and
transportation  equipment to  businesses.  The focus is on businesses who in our
judgement  are  financially  sound but who might have a difficult  time  getting
financing at a bank or other traditional sources. The Registrant leases to these
type of  businesses  since a higher lease rate can be charged than to businesses
with unblemished credit histories. We will concentrate on equipment and vehicles
that are an integral part of the business  which will help further to secure our
financial position and secure our payment stream.

The Registrant is also seeking to obtain a line of credit or guarantee on a line
of credit in order to  increase  the amount of capital  available  to it to make
leases and provide a greater return on its equity and therefore a greater return
to its shareholders.

There have been no economic events or changes that have affected the Registrant,
for better or worse,  to attract  capital  and there are no  economic  trends or
uncertainties that the Registrant expects will have a material impact on whether
it can attract  capital in the future.  The market for lease  financing still is
strong  and there are not signs  that the  economy  is  slowing  to affect  that
market.

Liquidity

The  Registrant  has liquid  assets of $30,485 which it has left from the monies
raised under its registration statement.  The Registrant is in a liquid position
and will continue to raise monies under its  registration  statement in order to
make additional leases and for return on its capital.

The Registrant has minimal expenses and no commitments.

Capital Resources

The  Registrant's  capital  resources have been generated from the sale of stock
under its  registration  statement that became  effective  January 24, 2000, and
from the lease of equipment according to its plan of business.

                                        5


<PAGE>



The Registrant is in the middle of a stock offering under its SB-1  registration
statement which became effective during the quarter.

There were no plans or  requirements  for  purchase of capital  items during the
quarter for  company  purposes.  The  Registrant  does not foresee any  material
capital purchase in the coming twelve months.

PART II.     OTHER INFORMATION


Item  1.     Legal Proceedings.

                  The Company is not involved in any legal proceedings.

Item  2.     Changes in Securities.

                  Registrant has made no changes in its securities.

Item  3.     Defaults Upon Senior Securities.

                  Registrant  has  no  senior   securities  and  accordingly  no
defaults.

Item  4.     Submission of Matters to a Vote of Security Holders.

                  Registrant submitted no matters to a vote of security holders.

Item  5.     Other Information.

                  None.

Item 6.      Exhibits and Reports on Form 8-K.

                  None.

                                        6


<PAGE>






Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

                                                     Asset Servicing Corporation
                                                     ---------------------------
                                                      (Registrant)


                                                     BY:  /s/  Charles Smith
                                                          ---------------------
                                                               Charles Smith
                                                     Its: Secretary

DATE:   May 9, 2000
        Rockwall, Texas





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