January 5, 2007
Financing Your Network
PCC Network Solutions Financing Options
A lease is a simple, easy way to enjoy the benefits of the latest technology without assuming the up-front costs, and risks, of ownership. FYI, we'll refer to "equipment leases" periodically, but do keep in mind that your lease may include equipment, cabling, and services.
Sustains Your Competitive Edge
Businesses change almost daily. New competitors, new market forces, new financial strains, new organizational structures all add up to a need for flexibility. When you select new technology, do you often wonder if it will be replaced by a faster, more powerful alternative next year, or even next month? Leasing helps you avoid the risks of ownership because you pay only for the use of the equipment. When your lease expires, you can buy the equipment, trade it in for the latest technology, or simply walk away (depending on the type of lease you choose). With leasing, you can put a technological "safety net" in place, your company's competitive edge is never dulled by the process of moving up to faster, larger, or different equipment.
Leasing lets you keep capital free for investment or other business expenses instead of tying it up in fixed assets. Profits from these investments offset the cost of the lease – you don't have to own an asset to make money using it.
You can reinvest the cash you conserve into inventory or new marketing promotions - investments that can bring real profits to your business.
Preserves Existing Credit Lines
Leasing gives you a new source of credit for present and future needs, while your existing bank lines remain intact for other uses.
Unlike bank loans, leasing means no down payment, no deposits, and no required compensating balances in most cases. Installation, wiring, maintenance, taxes, shipping charges, and even software costs may be included in your monthly payment.
Leasing offers important tax benefits that reduce your cost of obtaining equipment. Depending on the type of lease you choose, you may be able to write off the entire monthly payment as an operating expense or capitalize the outlay.*
Leasing guarantees a fixed monthly payment amount for the length of the lease term, so it's easy for you to forecast equipment expenses. It also gives you the flexibility to obtain unplanned-for-equipment -- operating budgets may easily accommodate a monthly payment, but capital budgets often can't be stretched to allow for an outright purchase.
Pay as You Go, Not Up Front
With leasing, you pay for equipment as you enjoy the benefits of using it.
Perfect Solution for Expanding Businesses
You deserve access to the latest equipment and technology. Leasing protects you from being locked into owning equipment that may not meet your future needs. You will have the flexibility to upgrade to the newest releases, features and functionality as they become available. Leasing is often the financing solution of choice for businesses that hesitate to buy equipment because they fear it will become obsolete before they can fully depreciate it. *Be sure to consult with your own accountants or tax advisors regarding the tax consequences of leasing and financing transactions.