Tweet

What Computer Leasing Companies Don’t Tell you about Computer hardware Leasing

Guest post by: Stan Prokop

Article Overview: Information on what Canadian business managers and owners need to know about computer hardware leasing in Canada . Profiling some Computer Hardware Leasing Tips .

What Computer Leasing Companies Don’t Tell you about Computer hardware Leasing

Because most Canadian business owners and financial managers aren't tech savvy they are often intimidated and confused by computer leasing companies and computer hardware leasing. We also are always amazed when clients don't know that computer software can be financed also - not everyone knows or tells you that. If a certain computer leasing company does not by policy finance software, guess what, you have other financing options for that part of your purchase.

You have made the decision to lease of finance your technology, which might include hardware, software, telecom equipment, routers, etc! One of the key drivers in your decision is of course always the tremendous cost of capital equipment acquisition in technology. And it's not as if that's an appreciating asset on your books. Have you checked out computer and technology prices - performance goes up and new models come out every year, and price comes down. Other than absolute cost that is of course good news.

What most lease companies don't tell you is that you have a number of key decisions to make when you lease technology, and their firm might not necessarily be the best one to finance your purchase. Why is that? Simply because financing companies are not technology companies, they are driven by pure return on invested capital. They make money via the actual interest rate on the transaction, as well as the sale of your computers at the end of the lease if you have entered into a fair market lease. (More about fair market leases later)

Other ways in which the lease company makes money off your firm is the ability to lock you into a relationship whereby you become a repeat annuity customer for additional technology financing. Other subtle and minor profit generators for lease firms that you might not know about are:

Interim rents

Pre-pay penalties

Admin fees

Excess use and refurb charges,

Etc!

Let's move on to major secret # 2 that your computer lease company might not tell you about. That issue is based around the concept that you want to use technology, not own it (Why would you want to own a depreciating and obsolescing asset?). The solution that drives and solves that problem is the previously mentioned fair market lease, otherwise known as an operating lease. That more often than not, for a significant computer lease financing is the best solution for your leasing needs in technology. But guess what; we feel that probably 90% of firms don't offer that solution, because it involves being a specialist in asset and residual values. Finance lease companies tend not to know too much about the bits and bytes.

Therefore you should ensure that you have options in your lease proposal that identify whether you can finance on an operating lease basis also. It might not necessarily make sense for a small purchase, but a larger acquisition should consider this strategy.

Another significant benefit of leasing in general applies to computer leasing, which is that miscellaneous add on's can be financed - they include shipment, install, warranty, etc. Not every firm allows you to finance these, most will. And, as we mentioned, don't forget, Software can be financed!

Investigate carefully the financing of technology - these assets are expensive, depreciate, and you do not want to make an improper financing decision for technology that is driving your accounting, sales and customer relationship data.

Speak to a trusted, credible, and experienced business financing advisor to make sure you know the ' secrets' of computer lease financing.

Related Articles
  Leasing IT Cloud Financing Services . Lease Your Hardware And Software Needs
  Can Software Be Leased and Financed?
  Car Leasing For You
  Lease Equipment
  Technology Leasing Companies - Canada – Inside Info On Computer & Software Finance
  Are You Mastering Technology Financing ? Canadian Computer Leasing Must Know Info For PC Hardware And Other Tech Assets
  Software Leasing and Financing in Canada
  The Evolution of Equipment Financing and Leasing in Canada - an Overview
  Computer Leasing and Financing in Canada
  Commercial Business Equipment Leasing Services Provided by Financing Companies in Canada
  Caution - Danger Ahead ! IT Finance And Computer Leasing . Technology Financing Tips
  Equipment Leasing- Types and Advantages
  Private Leasing & Traditional Bank Loans
  Why Companies Should Consider Leasing Computers and Technology
  Automatic Renewal
  Is a Leasing Company Your Best Choice For Business Equipment Financing – Choose Business Leasing That Makes Sense !
  How To Work With The Best Canadian Leasing Companies In Business Financing and Financial Services ?
  Equipment Leasing as a Government and Municipal Financing Strategy in Canada
  Sasquatch ? UFO’s ? Great Asset finance and Equipment leasing Companies in Ontario ? – Myth or Reality ?
  How To Get The Best Finance Deal When You Lease Equipment from Commercial Leasing Companies

Article Tags: computer hardware leasing, computer leasing, computer leasing companies, leasing tips



Related Forum Posts
Home-based Business - signed my first 200 customers while I worked from home. You can make it work. Many small businesses do, i.e. interior designers, AC/Heating Companies, moving companies, Plumbing companies, painters, landscapers, web designers, Mobile car mechanics, Computer Techs, online retail businesses, Pool cleaners, Home Repair, Telemarketers, electricians, Artists, etc
secure my connection - I agree with Link's second post. Security is a personal sticky issue and possibly not the first service you should introduce yourself at the door. I'd suggest also the Back to School "In-Home" Computer tuneup (it's such a pain to take your computer in for servicing) and promise that they would see a smoother and faster computer. You can hand them a 2 page report on the benefits of having a computer tuneup -> this is critical. After you are gone this is the only piece of information that they will have to begin trusting you and want to have you in their home. You can sneak at the bottom of the report the benefits of having a wireless connection and the importance of Securing it. finish off the report with two dotted rounded rectangle boxes beside each other. One has a free Computer tune up assessment and the other a free wireless network security test. If they take you up on either you can test for the other. You now have two sources of possible income.
Protect yourself from Hackers - I received this from a newsletter from FXpro that I subscribed to. Please read and apply In the 21st Century internet is widely used for everyday job. Despite the "ease" and free time offered from internet use, one should be aware of the dangers and be prepared to avoid and safeguard him/herself from any attacks his/her computer may accept or even from the "unwanted" e-mails received. Golden Rules of Protection When using the internet make sure you have an antivirus program installed in order to avoid intrusions in your Computer, If you are using wireless internet connection make sure you have your connection locked, Do not save any official documents on your Computer, such as Copy of Passport, ID, Bank account numbers, copy of cards in case your Computer is hacked or even stolen, Keep all access codes/passwords in a safe place, Do not share an e-mail address with any person, Do not reveal any access codes, passwords to any person, If you are using a public Computer, ie in an internet cafe, make sure you log out any internet sites you have visited before leaving and deleting the cookies in order to minimize the risk of someone following your tracks, Regularly change your passwords on your e-mail accounts, or any other account that requires passwords, Be careful of e-mails received. Always check the e-mail address and in case you believe that this does not come from a person, Company, Organization you might be dealing with always send an e-mail to an e-mail address stated on the person's business card, Company's, Organization website requesting them to confirm that the e-mail address on the e-mail received belongs to them, before you reveal any information, Always have in mind that an established Company/Organization never uses an e-mail address such as g-mail, yahoo, hotmail etc thus always be careful when you are receiving such e-mails, even if it appears to be from a Company/Organization you are dealing with, Always remember that a Company or Organization will never require you to send them your login/password/access codes, When using a website that requires an access code, do not allow the browser to remember your passwords
How long can you stay away from your Computer? - David had just returned from vacation and he stayed away from his computer for 10 days. How long can you stay away from your Computer? If I don't touch my laptop in a day I might be sick. It is like food to me, which I can't do without for too long
Should I buy Vista This Year?? - I’m a woman entrepreneur and running computer data entry center with 30 computers in my office. I’m planning to upgrade my OS from Windows XP to Vista. Since December Windows vista is out on sale for businesses. Just wondering how many of you are going to invest in this new operating system upgrade. I think I should wait until 2008 as it will cost a huge amount of money to upgrade to vista. Computer prices need to fall first.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Sales is a Flawed Model

Do You Pretend To Listen To People?

Listen to Your Inner Melody

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.