Benefits of Technology Financing
Whether you’re a CIO considering a switch from Sun to IBM or a manager debating about upgrading your entire Server platform, one thing remains the same: you’ve probably got one eye on your efficiency gain and the other eye on your budget.
Fortunately, there are several financing options available to help you break down large technology acquisitions into more affordable monthly payments.
The Equipment Leasing and Finance Association (ELFA) estimates that eight out of ten U.S. companies lease at least some equipment, but what many people don’t realize is that there are flexible financing options available for almostany kind of technology equipment, including software, services and training.
Equipment financing is a popular way to maximize your purchasing power largely because it is acost-effective way to obtain the newest equipment without a large outlay of cash.
Financing also helps shield you from the effect of equipment obsolescence, a real issue for all those using any type of technology asset. It’s easy to add the latest software version to your master lease so you don’t have to worry about working with outdated technology.
The Benefits Add Up
Some of the other recognized benefits of financing technology equipment include:
• Reduced Tax Burden – The IRS does not consider certain leases, for example, to be a purchase, but rather a tax-deductible overhead expense. Therefore, you may be able to deduct the lease payments from your corporate income.
• 100 percent financing – Some financing options require very little money down – perhaps only the first and last month’s payment are due at the time of the acquisition.
• Immediate write-off of the dollars spent – With some financing options, payments can be treated as expenses on a company income statement, so equipment does not have to be depreciated over the useful life of the equipment.
• Flexibility – As your business grows and your needs change, flexible financing options provide more opportunities for businesses to add or upgrade equipment during the lease term.
• Asset management – Financing provides the use of technology equipment for specific periods of time at fixed payments. With some financing structures, the finance company assumes and manages the obsolescence risk of equipment ownership. At the end of the finance terms, the financing company is responsible for the disposition of the asset.
But that’s just the tip of the iceberg when it comes to reasons to finance technology equipment. Some of the other recognized benefits of financing include:
• Upgraded technology – Equipment that is frequently updated, such as software, should be financed to limit your risk of being stuck with obsolete equipment. It’s easy to add the latest software version to your master lease, for example, so you don’t have to worry about working with outdated technology.
• Speed – Some financing options can allow you to respond quickly to new opportunities with minimal documentation and red tape. Most resellers work with a finance company that can approve applications within twp hours.
• Improved cash flow – Many finance structures can result in a lower monthly payment when compared to a standard loan. In addition, some finance companies offer seasonally adjusted payments to match a company’s needs.
• Simplicity- Financing process and documentation is straight forward and easy to understand.
Finance Services Too
Training, support and other services are vitally important to a successful technology implementation, yet they are some of the most overlooked costs involved with a technology acquisition. Because of this, Somerset Capital Group, Ltd. offers a finance program to help companies cover the cost of training and services, specifically.
Often, everything involved in a technology purchase, from the software to the services and training can be bundled into one predictable monthly lease payment, making it easy to budget for all costs associated with a technology acquisition.
With Financing, One Size Does Not Fit All
Another important benefit of financing is that there are a variety of flexible financing products available to help meet your unique business needs. Many finance options can be tailored to fit month-to-month or year-to-year cash flow needs. Custom arrangements can be designed to address requirements such as cash flow, budget, transaction structure, cyclical fluctuations, and more. Some finance options even allow the customer to miss one or more payments without penalty.
If you’re concerned about purchasing technology that could become obsolete or outdated, or if you’d like to give yourself the flexibility to respond quickly and easily to new opportunities that call for additional software, chances are there’s a financing option for you. Even if your company has cash on hand for a large technology acquisition, there may be a finance option available that would allow you to make better use of your working capital.
Like any business decision, it is important to do your research before deciding which kind of finance option makes the most sense for you.
Get Financing Today
Because financing is such an important part of helping you get the software you need to excel at your job, USXL makes a variety of flexible financing options available. The application process is fast and simple; you could qualify for financing before the end of the day.
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Help answer the question about finance
What is the difference between a career in Finance and a career in Accounting?I am thinking about going back to school to get a BS in Business Administration.
I would like to know what the difference is in careers in Finance and Accounting. Has anyone had a career in either field? What I want to know is:
What did you think of your career?
What did you do all day in Finance or Accounting?
Did you find it exciting or really boring?
For a career as a Financial Planner or Financial Advisor, do you work off of commision only?
Any information would be very helpful. Thanks.
August 4th, 2009 at 3:03 pm
Every source of energy takes huge up front investments. You can't produce electricity with coal unless you build the plant. The government has subsidized most forms of energy, so I don't see any differences between dirty energy and clean. The only real difference is wind, solar, tidal etc, won't be held hostage by suppliers or market conditions. We just need more people like T. Boone Pickens to see there are ways to make money off of the technology and it will happen.
Culturally, the challenge is to show people we can continue to live a comfortable lifestyle and conserve energy. We can solve a lot more problems by cutting back on demand than rushing projects to meet demand.
August 4th, 2009 at 3:09 pm
It will not work
I investigated Medicaid & Medicare Fraud in NYC and Long Island for 28 years.
Well over one thousand times; I visted Medicaid or Medicare Clinics and/or NYC Hospitals, Pharmacies, etc. " posing " as a Medicare or Medicaid Receipient.
The Providers ( Doctors, Dentists, etc. ) steal millions of Dollars from the government and the Recipients also steal from the system in that they allow the Providers to Bill the Government for Medical Services that they never receive in exchange for pills and/or money from the Provider.
I once saw a Medicaid Recipient with 21 different Medicaid Cards under 21 different names with 21 different Client ID Numbers ALL with her photo on them
I made undercover visits to a Psychiatrist who gave his patients a 3 minute visit ( including me ) + a bag of pills and the Psychiatrist billed the Government for 27 Hourly Therapy Sessions every day and….you guessed it…the Government paid for 27 Hours in each day.
I arrested a Dentist whose Office was open from 10 am – 12 Noon every day. This Dentist had gypsy cabs drive 40 junkie recipients ( from Harlem & the Bronx ) to his Office. The Dentist would then x-ray every junkie's mouth & pay each one ten dollars. The Dentist then billed the Government for the same $ 350. worth of ficticious Dental Work on each Patient. This went on for 18 months & the Dentist was paying the junkies a total of $ 400 per day & was receiving a check amounting to $ 13,500 per day from the Government for 2 hours of billing for services not rendered.
As far as the quality of care goes….I recall one Dentist's Office where a new hygenist remarked " Doctor….you are not sterilizing the instruments that you use in the patient's mouths " & the female Dentist replied " What do you care….they are all junkies with AIDS & they are going to die anyway "
So much for Government Health Care
August 4th, 2009 at 5:37 pm
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August 5th, 2009 at 5:53 am
Because, Clinton, like Obama, thinks he is God. They are competing for the spot light.
August 5th, 2009 at 8:43 pm
Very good article you directed me to. I do have to agree with the author of it, Rockwell. If you really want to find an answer you your lead off question, read the book "The Sociopath Next Door" by Martha Stout. You will understand the mind of those in power. I direct you to this book because Mr. Rockwell has his list of 10 lies. Lie #2 is well suited for the book I have suggested. The book is going to cost about $20.00 or less. Last but not least, if you have a desire to understand how the economy works read "The Creature From Jekyll Island" by G.Edward Griffin.
I leave you with 2 quotes, not of my own.
If the American people really knew how the economy works, there would be a revolution before breakfast. = Henry Ford
Democracy is 2 wolfs and a sheep voting on whats for lunch. Benjamin Franklin
August 6th, 2009 at 10:24 pm
I would. In terms of economic policies, he is very smart. As a fiscal conservative, he impresses me with his limiting government, pro-individual stances.
August 7th, 2009 at 7:26 am
Reality check.
The philippines has good sound laws but corrupt political influences always delay the implementation of these laws.
By the time these laws are enforced, they become so obsolete that another law must be passed (just like the politicians who regularly pass gas – i.e. fart through their mouth).
August 7th, 2009 at 11:33 am
First of all you shoud be called a great BIG conservative. To be an American you should have respect for the Constitution and what it stands for. The current admin does not even recognize to Constitution. Mr. Bush considers it "A god damn piece of paper" Cheney cannot even remember that the military oath is to defend the Constitution. (His memory failed during a prepared speech to West Point graduates)
At the end of your dissertation you requote Mr Bush as stating he he stands firm for non-negotiable demands of human dignity.
So far during his watch:
Rescue workers at ground zero were lied to regarding their health.
Habeus Corpis was revoked after 200 years
Torture was instituted (including children)
Americans have had their phone conversations eaves dropped upon.
The public has been lied to regarding war.
Thousand of American soldiers have died
Hundred of thousands of Iraqi citizens have been murdered.
The deficit is at 3 Trillion dollars and the American dollar may collapse because of the debt.
Gas prices have risen dramatically and that is not due to the price of oil. The refineries are not working at capacitiy and the oil companies ( this admin. is a part of) have raked in record profits.
The middle class has eroded. Americans are now putting living expenses on their credit card.
The government has not been held accoutable to the people.
Women are certainly not respected when the ban on late-term abortions did not include emergencies concerning the life of the mother.
Religion is only tolerated if you believe in the approved God.
Property Rights are not respected when you consider "eminant domain"
Freedom of speech is only "free" when you agree with the policies of the admin. (or if your FOX noise)
There is NO equal justice since this current regime has taken power and eroded our civil rights. The same rights that we are supposedly defending with the war on terror.
The USA has not signed the Kyoto accords.
The USA has NEVER signed any UN resolutions regarding human rights.
The USA does not belong to the International Court so none of our leaders can be tried for human rights violations or crimes against humanity.
Stop listening to the propaganda and do some independent research before you regurgitate the "official line".
This president may think he has principles but he certainly does not abide by them. The sheep that are following are fellow Republicans (congress) and certainly NOT liberals!!!
So whose idea of "right" are you speaking of?
August 7th, 2009 at 9:08 pm