Computer Lease Financing Becoming More Common Place
It wasn’t all that long ago that computer lease financing was not widely available to most small and medium sized businesses and if it was, the down payment required would be significant, rates higher than average, and lease terms short.
That’s changed in recent years, especially in the small ticket leasing world for financing requests under $100,000.
A computer hardware and software leasing request for hardware and/or software can now receive lease financing up to 100% of the purchase price of the assets with longer lease terms and better rates available.
Even used computer equipment can be leased in some situations, although the leasing term is going to be shorter to reflect the remaining useful life of the asset.
As a cash flow management tool, computer lease financing is definitely an option to be considered when acquiring any computer related assets over $1,500.
Why Has Computer Lease Financing Become More Popular Among Leasing Companies?
Leasing companies have grown to realize that computer hardware, software, telephone systems, etc., are essential equipment that must be retained at all costs for the business to function.
Therefore the risk of default is rather low which makes for a good lending or leasing risk despite the fact that the assets themselves do not add much security value to the leasing company.
The other key motivator for leasing companies is the simple fact that all companies required computers and all companies will need to upgrade their computer related assets over time.
So this is a way to attract long term customers that are going to potentially require financing over and over again and may also have other equipment leasing needs that can be met by a leasing company.
Because of the low potential resale value of computer assets, the credit decision for lease financing is primarily based on business and personal credit ratings as well as established business cash flow.
For instance, it will be much easier for company that’s been in business for at least two years to get computer lease financing than a company that is just starting up.
If you are in the need for additional computer equipment and want to explore your computer lease financing options, we suggest that you give us a call so we can quickly go over your requirements and provide computer lease financing options that will meet your needs.