avacadoStudios

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Equipment Leasing

In the past, most technology solution providers preferred to focus on technology and leave leasing and financing options to third party financing companies. A robust economy insured short sales cycles, so life was good.

But as the recession deepened, many technology providers are re-examining in-house leasing options as a vehicle to increase sales and market share in the coming years. Leasing is a “win win” for providers and customers. For customers, it offers a way to battle tightening credit lines and weak cash flow; for venders it offers a way to make a sale that may otherwise be urn-makable.

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A ChangeWave Research survey of nearly 2,000 IT executives reported nearly half of respondents said they will decrease spending on IT or purchase nothing at all in the first quarter of 2009 as a result of cash flow or credit problems.

The Equipment Leasing Association has found that 85% of American companies lease some or all of their technology equipment. 
Leasing offers the following advantages:

  • Protection against Product or Software Obsolescence. Leasing offers the option of keeping servers, work stations and software licenses current with the latest versions.
  • Improved Cash Flow. Leasing permits a close matching of rental payments to revenue produced by using the technology equipment. Leasing keeps cash reserves accessible.
  • Tax Benefits. Tax advantages can make leasing less costly than outright purchase or bank financing of the same equipment. Speak to your tax advisor for details.

Market analysis by IDC indicates that 15% of IT equipment in the U.S. is currently leased or financed through in-house or independent financing operations. IDC predicts that number to increase 10% in 2009, despite the fact that IT spending will decline.

Avacorp Solutions offers streamlined leasing options that simplify the leasing process. Streamlined leases get your new technology solutions to you as quickly as possible so you can begin realizing the benefits of your new equipment.

Contact your Avacorp representative today for an equipment lease tailored to your business requirements.

Avacorp, Inc.
6621 Bay Circle Suite 120, Norcross, GA 30071 USA
Contact us anytime at 770-407-7500, or send us a fax at 770-407-7499