IT Financing | IT Leasing ProgramLas Vegas
Brydan Solutions offers financing or your IT equipment, software and licensing procurements. We offer this leasing program through Ingram Micro Leasing by VAR Resources. Maximize your IT purchasing with a lease option fitting your monthly IT budget while taking advantage of the tax benefits. With an approved purchase of at least $3000.00, we can get started on your lease today! Call us at (702) 966-2774 to start the lease application process.
Leasing Benefits: Why You Want To Lease
Dale Carnegie said, “Buy what appreciates, lease what depreciates.”
With the relatively short useful life span of IT assets, leasing can provide significant advantages over other acquisition strategies. Benefits include:
Preservation of Capital
Companies need to fund receivables, inventory, payroll and equipment. Some businesses may not have access to bank loans or supplemental sources of capital. Often, especially in a down economy, a shortage of capital can develop. Leasing can help prevent this by reducing the capital required for your equipment.
Low Up-Front Costs
Funding your equipment acquisitions with a conventional bank loan usually requires a 10 percent to 20 percent down payment and often includes restrictive covenants. Leasing normally requires only one or two monthly payments in advance, which are applied to future payments.
Overcome Budget Constraints
Most companies operate under budgetary constraints — the result of a formal planning process or the availability of funds. With formal planning, companies can use leasing to bypass the capital budget, as payments are usually accounted for as expenses. If the budget is based on capital resources available and the company can’t fund the full purchase price, a payment option is often the answer.
Keep on Top of New Technology
Leasing helps keep technology up to date by facilitating periodic replacement of technology assets and permitting replacement even if capital resources are not available.
Solves Disposition Issues
When customers reach the end of their leases, they can return the equipment to the leasing company. This relieves them of the hassles, costs and liabilities involved in disposing of technology equipment.
In most cases, the lease covers all expenses: the full cost of the equipment, service, shipping, installation costs and maintenance.
Potential Tax Savings
Owned assets are normally capitalized. Therefore, depreciation and interest expense are written off for tax purposes. Monthly lease payments are typically viewed as operating expenses. This usually offers significant tax benefits.
Companies should always consult with a financial advisor or CPA to determine the proper tax strategy.
Comparing Financial Strategies
|Initial Out-of-Pocket Cost||No money down||100% of Cost||Usually 15 to 25 percent|
|Length of Terms||Longer terms available, up to 60 months||Paid in lump sum upfront||Usually 24 or 36 months, rarely longer|
|Impact to Credit Line||None. Credit lines preserved||Balance sheet impact||Decreases credit limit with bank|
|Payments||Fixed payment, possible tax benefits||Balance sheet impact||Floating or variable rate – could go up or down|
|Upgrades or Add-ons||Simple to add or upgrade during the course of the lease||No obsolescence protection||Re-application often required|