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 It’s easy to add the latest software version to your master lease so you don’t have to worry about working with outdated technology.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.

Watch the video related

Niall Ferguson, Harvard professor, discusses the history — and future — of finance with Harvard Business Review editor-in-chief Adi Ignatius.

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What banks can finance a single family residence under 600 square feet?
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