Why should my company consider Technology as a Service?

A: TaaS preserves cash, protects credit lines, and can create tax benefits. It also helps you budget monthly expenses.

Is financing only for large enterprise companies?

A: According to the Equipment Leasing & Finance Association, 7 in 10 businesses in the United States use some form of financing to acquire equipment (excludes credit cards). Financing provides benefits to businesses large and small.

How much money will I have to put down?

A: We provide your technology with no money down on most transactions. Bank loans or credit lines will often require money down to initiate the transaction.

How is this different from an equipment lease?

A: Customers typically choose between leasing with buyout, or rental agreement. Many customers choose Technology as a Service to keep their technology current, and for operating expense benefits.

Should we buy and own our new technology?

A: There are some cases where outright buying equipment makes sense, but at the rate technology is evolving you may end up owning an obsolete system. Ask yourself two questions to determine whether Technology as a Service is right for you.

• How else can you use your cash or credit lines?

A: Many companies use cash to hire new employees, invest in marketing and future company growth, or for unforeseen emergencies.

• Are you prepared to make another capital investment to upgrade this system in 3 to 5 years?

A: TaaS puts you on a monthly budget, and by the time the system is outdated, you will be able to upgrade an already budgeted item and keep a comparable monthly payment.

What are the differences between a Capital and an Operating purchase?

Typically, a lease is considered a capital purchase and recorded as an assest. If you’re looking for something that you can treat as an operating expense, then technology as a service could be the best option. 

Check to see which benefits suit you best.

Purchase Outright

Lease

TaaS

Your Benefits

Capital expenditure,
you own the asset

Accounted on your balance sheet and depreciated

Generally considered an operating expense

End-of-Term

No term, assets hold little to no value after 3 yrs.

You own after final payment

You may return, continue renting,
or upgrade

User Support

Not Included

Not Included

INCLUDED!

Can we add equipment to our agreement?

A: Yes! Adding equipment to your agreement during the term is simple. Most times, add-ons are coterminous, making the new payment end at the same time as the original agreement.

Isn’t the lowest rate the best option?

A: Not always. Many banks and financial institutions have hidden fees in their finance agreements. Fees can include automatic renewal payments (some up to a year), fees to process taxes, interim rent, and high Fair Market Value residuals. Before making a decision, read through the proposed finance agreement and be sure you will not be surprised by hidden fees.

With a purchase or a lease, no matter how low the rate, you still have to pay for I.T. support. Not with Technology as a Service, where end user support, backup, and network security are always included.

computer and monitor