Keeping on the cutting edge of technology is a problem that every business today faces. With technology producers moving ever faster to get the next smallest fastest largest capacity devices into the market place; and software developers jumping on the band wagon as the newer hardware means that more complex instructions can be executed even faster. SME’s and even large corporate organisations are struggling to keep up.
Technology equipment (meaning PC’s, laptops, servers, PABX systems, printers, etc.) depreciates in value from the moment it has been purchased. This means that as soon as the cheque has been signed for the goods, they are already worth less than what was paid for them.
Technology equipment depreciates over a three to five year period. Meaning that the equipment will have a negligible value after this period, and the value that could be recovered from selling the equipment would not be substantial enough to warrant the purchase of the equipment in the first place.
An equipment rental works as a form of asset-based loan. The business arranges a monthly payment schedule with a rental finance company for the use of the equipment over a pre-arranged period of time. When that period ends, the business can return the equipment to the rental finance company and extend the contract to update their entire technology equipment infrastructure.
There are many benefits and business best practices associated with technology equipment rental, these include : Capital Conservation; Off Balance Sheet Benefits; Disposal Cost Avoidance; Flexibility (operational and payment); Maintaining A Competitive Advantage; Credit Line Preservation and Asset Management.
The net result is that rental is becoming more than a financial option for companies. It is becoming a way to streamline and simplify, a way to get more for less, and maybe a way to save oneself for the headaches of heavy administration. And that’s an option worth learning about.
Technology equipment (meaning PC’s, laptops, servers, PABX systems, printers, etc.) depreciates in value from the moment it has been purchased. This means that as soon as the cheque has been signed for the goods, they are already worth less than what was paid for them.
Technology equipment depreciates over a three to five year period. Meaning that the equipment will have a negligible value after this period, and the value that could be recovered from selling the equipment would not be substantial enough to warrant the purchase of the equipment in the first place.
An equipment rental works as a form of asset-based loan. The business arranges a monthly payment schedule with a rental finance company for the use of the equipment over a pre-arranged period of time. When that period ends, the business can return the equipment to the rental finance company and extend the contract to update their entire technology equipment infrastructure.
There are many benefits and business best practices associated with technology equipment rental, these include : Capital Conservation; Off Balance Sheet Benefits; Disposal Cost Avoidance; Flexibility (operational and payment); Maintaining A Competitive Advantage; Credit Line Preservation and Asset Management.
The net result is that rental is becoming more than a financial option for companies. It is becoming a way to streamline and simplify, a way to get more for less, and maybe a way to save oneself for the headaches of heavy administration. And that’s an option worth learning about.
Posts
No comments:
Post a Comment