Benefit From IT Technology Financing - Whether It Is Your Laptop or Your Server Farm!

Updated: February 17, 2011

Many traditional financing options are available to meet your tech finance needs, but where we think you really attain maximum benefits with lowest risk is in highly specialized areas such as off balance sheet financing and residual risk partnering and sharing.

Should you be financing your technology or buying it? The age old adage in equipment financing, whether it be technology IT financing or plant equipment leases is that if it appreciates, buy it, if it depreciates, lease it!

We can categorically assure you that the largest, smartest, most cash rich, and successful companies utilize the benefits of lease finance, whether it's one laptop, a fleet of laptops, or a server farm upgrade. (A server farm is simply a group of computers in a data center that run your business data - for reasons of balance usage, scale and security).

The most sophisticated approach to technology IT financing in the past has been the use of off balance sheet leases - these still are a very cost effective way of running your tech finance programs. The challenge is working with the right partner that allows you fairly, and seamlessly, to invoke your three rights as a lessee under this lease. Those rights are the ability to purchase when you want, upgrade, or return. Extending also plays into those rights - for example - you enter into a 36 mo fmv lease with the option of returning, but you need to use the equipment 5 more months, perhaps for a special project, or to run a new system in parallel, etc .

Fortunately, or unfortunately, depending on what side of the fence you are on a lot of the pure tax and accounting treatment historically recognized by FMV type finance are going away with new internationally accepted accountant standards changes. However, let's be clear on this - your ability to secure lower payments, plus invoke your 3 rights under the benefits of IT operating lease financing still favor you, the lessee.

Featured Research
  • The Role of Self-Service in Modern Contact Centers

    By 2020, 85% of customers' relationships with companies will be managed without any contact with human services representatives. What does that mean for your business? The data shows that companies need to offer effective self-service options in order to remain competitive. However, many contact centers are confused about how their core contact center software fits into self-service. more

  • 7 key questions to ask any ERP provider

    Having a fast-growing business is good. Having to overhaul your technology every time you need to scale is not. Upgrading to a more complete Enterprise Resource Planning (ERP) solution can help, but how do you ensure the solution you choose is exactly what you need? To help you with your search, we’ve pulled together 7 key questions every fast-growing business should ask before choosing a cloud-based ERP solution, including: more

  • How Finance Leadership Pays Off

    Oxford Economics recently surveyed 1,500 finance executives and it’s clear that small and midsize companies are growing significantly faster than larger companies. But, there are also big opportunities for finance to increase efficiency, boost financial performance, and work more strategically. Why is that? more

  • Professional Services Audience – Improve Profitability Infographic

    As a Professional Services Organization (PSO), you know the importance of customer satisfaction. In fact, 47% of PSO leaders say managing changing customer expectations is their top challenge. That’s why many firms are engaging smarter project management technology, even before deals are signed, to ensure project profitability. How are these leaders utilizing technology? Find out now. more

  • 9 Tips for a Compelling Video Presentation

    Face-to-face communication is the most effective way to collaborate and bring ideas to life in your business. Because of this, many businesses invest heavily in travel budgets so they can meet in person to create and nurture business opportunities. However, video technology has become more accessible, affordable, and user-friendly over the years. In fact, the enterprise video business market will reach $36.5 billion by 2018. more