Finance and Leasing
Itbg are able to offer a variety of procurement options to address complex investment decisions and manage product life cycles more effectively. To that end we offer an unrivalled portfolio of financing options to suit the needs of the most demanding organisations.
Costs can be spread over 24 – 60 months with monthly or quarterly payment profiles:
Operating lease
With this option, the equipment remains the property of the lender and gives the lessee the option of returning the equipment at the end of the term; continuing to lease at a peppercorn rental; or to buy the equipment at its residual value.
The cost appears as an operating cost in your p & l accounts as opposed to an asset on your balance sheet and can be utilised to gain tax relief.
(These leases are not currently widely available and if you would prefer to follow this option it is best to make it clear from the outset.)
Financing lease
In a financing lease, the equipment appears as an asset on your balance sheet and at the end of the term ownership passes to your organisation outright. It is slightly more expensive than a traditional operating lease as the payments will incorporate the total costs rather than a percentage, as residual values do not play a part in the calculations.
Financing
This is an efficient method of spreading the cost of purchasing the equipment outright over a given period of time and is the option favoured for the purchase of software or consultancy and installation services, where the benefit of the goods and services cannot be transferred.In this instance, the lender pays for the full capital cost, but you are responsible for the vat element which must be paid up front.
Funding for existing assets
Some specialist it lenders will finance your existing hardware estate based upon its then current fair market value. If this is something that would be of interest to your organisation do please call us to discuss how we can help you.
If you are considering funding and would like to know how much you are able to borrow, please visit our request for funding page.