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Finance or Leasing
In the current economic environment, with uncertainty and fluctuations resulting in limited access to credit, IT organisations are charged with balancing the need to invest in new information technology (IT) equipment with the broader, enterprise-wide objective of monitoring and limiting capital expenditures. These business units are now faced with determining how best to use internal cash as well as outside credit facilities to obtain IT equipment.
Despite the current market conditions, industry data indicates growing adoption of leasing as an alternative financing solution. According to IDC, over $80 billion of IT equipment, software, and services was leased or financed worldwide in 2007; it expects to see the IT leasing and financing marketplace exceed $100 billion by 2010. As many as 94% of the Times Top 100 UK companies, nine of the top ten Chartered Accountancy firms and 90% of Local Authorities enjoy the benefits of lease finance (source: The UK Capital Expenditure Statistical Office and Finance & Leasing Association).
Along with established financial benefits of leasing – preserving capital and helping to accurately balance project costs with benefits – there are also operational advantages to consider:
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Protection against technology obsolescence
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Asset tracking
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Accelerated approval process
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Equipment disposition
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Reducing maintenance exposure
Overall, the financial flexibility and improved operational effectiveness of leasing IT equipment allows companies to conserve capital for non technology needs, operate with the latest technology, establish and maintain a more disciplined technology refresh program, and acquire these resources in one place for added convenience and savings.
We offer two methods of financing IT equipment for your business:
Microsoft Financing
You can finance software, services and hardware as long as there is at least one Microsoft component in the contract. Your customers receive rights to use the software as long as needed based on payment terms.
Contract Changes
At any time during the contract, you can add software, hardware or services with supplemental financing available from £1,000. Additional credit approval may be required.
Payment Details
• Interest rates are competitive and determined by the term and size of the contract.
• Payment terms are offered from 24 to 60 months, depending on the program.
• Deposit payments are generally not required.
Microsoft Financing can work with you to structure payments on a case-by-case basis.
What can it be used for ?
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Microsoft software, services (maintenance and upgrades,
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Technical support, training and implementation)
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Hardware and ancillaries
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Installation and implementation services required to get the solution up and running
Subsequent software additions and services satisfying the above criteria may be added to an existing financing agreement - with credit approval.
Leasing
Buying new technology can take a huge bite out of your working capital and loans are getting more expensive. Leasing gives you the latest technology at a price you can afford, along with attractive tax benefits.
You can lease almost anything we sell and profit from our flexible, tailored plans on equipment worth from five hundred to hundreds of thousands of pounds.
You can lease an entire system including accessories, software and even support. You can even upgrade your system before the end of your lease.
Leasing Benefits
Saves working Capital
If you buy the equipment outright the capital invested, becomes tied up in a depreciating asset. This means it cannot be used for other projects. Leasing equipment, on the other hand allows you to save resources for other purposes such as new business opportunities, responding to unexpected problems, product development or marketing.
Easier Budgeting
Payments made throughout your lease agreement are not affected by changes in interest rates. So unlike a bank loan or an overdraft you can plan accurately for lease payments in advance.
Future Credit Line Facility
If you lease the equipment existing credit lines, such as arrangements with the bank, remain intact. This gives you the additional flexibility to use these arrangements if necessary in the future.
Upgrade Options
Leasing allows your business to keep up with the changes in technology and respond to any industry or competitive pressures. Your original installation can be altered, added to or completely changed either during or at the end of the lease agreement to accommodate any changes.
Tax Efficient
If you pay corporation tax, leasing can be particularly attractive. Leasing payments may be deducted from taxable profits, which reduces the net cost of renting the equipment. This means leasing is 100% off-settable against pre-tax profits.
Convenience
You can make leasing payments by direct debit. This helps you to avoid time in organising payment for equipment rental invoices.
Regular Payments & 100% Financing
When you lease you make a series of regular payments instead of a large capital outlay. Leasing payments are spread over a period of 3 - 7 years on the profile that is most suited to you (monthly, quarterly) and we also have semi annual and annual profiles available. A deposit need not be prerequisite to the finance arrangement. You simply make regular payments throughout the life of the agreement.
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