What do we offer?
Your company may like to take advantage of tax benefits from leasing. You would like more consistent cash flow in your business. You need equipment that you know will be obsolete in a few years.
Leasing may be for you if:
- End of Life Trade-Ins: Disposing of equipment at the end of life can be an environmental and economic challenge. Leasing allows the user to return the equipment they no longer use and replace it with new equipment they need.
- Leasing gives you a consistent monthly price for your operation. The lease/maintenance payment is the same every month, there are no surprises.
- It's a lot easier to upgrade equipment with a lease. If you purchase you are tied to the depreciation schedule and possible budgetary constraints…if you lease, for a nominal increase/decrease in the monthly payments, and an extension of the term, you can afford almost any new piece of equipment. Leasing in effect gives you an accelerated depreciation schedule. Instead of being tied to what the Tax Office says you should depreciate, leasing allows you to expense at a compressed schedule.
- With leasing you can construct flexible payment plans to fit a budget, either for an operating lease or for a lease to purchase transaction. Budgetary obstacles that were once there are replaced with a smaller monthly payment that may be expensed.
- By leasing, you “control" the asset…i.e. by knowing the lease rate, expiration date, etc. By contract you are guaranteed “quiet enjoyment" of the equipment you are leasing, full usage as though you owned it…and with the some types of leases, you can construct that option.
- Leasing offers capital conservation: If you lease, it leaves your company with more money to invest in growing the business, instead of making bulk IT purchases. You can use your company's cash or credit line to purchase or obtain equipment to make you more money. Leasing offers you another “cash line" to another creditor other than your bank. The right kind of lease may also be “off balance sheet" financing.
- Refresh Technology as Needed: With new versions of IT equipment constantly changing, leasing allows the user to change out on a more frequent, and yet planned basis. In a medium sized enterprise, leasing gives you a schedule to change out equipment on a planned basis, and eliminates a wide variation in technology from older to newer…no machine in the enterprise will be older than 36 months, typically. Your Help Desk’s challenges will be reduced by limiting the range of equipment they have to support.
- Some of the reasons that leasing IT equipment may be a good alternative for you are: In today’s economy, now more than ever, it’s important to justify your company’s expenditures. When it comes to IT equipment, sometimes there is no choice but to upgrade as the obsolescence factor triggers many decisions. Leasing is an excellent option for those unexpected expenses, or simply to avoid the upfront purchase expense.