The Equipment Leasing and Finance Association (ELFA) estimates that eight out of ten U.S.
Equipment financing is a popular way to maximize your purchasing power largely because it is a cost-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 It’s easy to add the latest software version to your master lease so you don’t have to worry about working with outdated technology.
Some of the 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.
• 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to add the latest software version to your master lease, for example, so you don’t have to worry about working with outdated technology.
Equipment financing is a popular way to maximize your purchasing power largely because it is a cost-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 It’s easy to add the latest software version to your master lease so you don’t have to worry about working with outdated technology.
Some of the 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.
• 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.
• 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.
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.
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.
At Mazuma we work diligently to promote the value that comes with leasing technology. From hardware to software it seems technology becomes obsolete so quickly, and many times with new technologies come training obstacles, services, warranties and upgrades. Leasing is a turnkey solution for companies and vendors when dealing with technology.
ReplyDeleteMany vendors are in need of a financing partner that can help their customers with less than stellar credit, and help with upgrades and add-ons. So many lending institutions are feeling the pinch of the economy and have a tight box when it comes to lending. Financing customers that fall outside of this box are turned away, with little to no other options.
Being a direct lender we have the opportunity to look at each individual seeking financing, many companies need new technologies to promote growth and become profitable once again. Mazuma works with each individual to come up with creative financing solutions to achieve their goals.
Mazuma works to establish beneficial partnerships with vendors. To help increase sales and build customer loyalty. Vendor relationships are becoming more and more important in today’s world. We understand the challenges and try to build solutions into each vendor relationship we cultivate.
We can often overcome various challenges within vendor relationships by becoming an expert on the types of technology each vendor sells/offers. We learn to speak their language and become more than just a financing source.
Another thing that Mazuma seeks is to see the big picture. We are interested in long term customers and vendor relationships. We believe is delivering on our commitments, to our partners, our vendors and the customer. Saying it is the easy part, doing it is the hard part!