Why Lease? What are the benefits?
- Budgetability - allows users to operate their entire IT infrastructure for an agreed
monthly fee that will remain constant for the duration of the agreement. If your systems
requirements change, the fee can be reviewed to reflect either an upgrading or downgrading
of your IT asset.
- No assets - no depreciation just regular monthly expense.
- Easy cost-centre management - enhances the management of your entire IT cost-centre
by enabling you to manage, change, optimise the use of all your asset, keep costs to a
minimum, and improve decision making processes.
- Removes burden of disposal - gone are the days when worn out computers could be
simply thrown away. Today companies must comply with a whole raft of regulations regarding
the safe, environmentally friendly disposal of their IT assets. The logistical burden of
disposal becomes our worry, not yours.
- Reduces TCO - all of the above enable you to reduce the total cost of ownership of
your IT structure.
Read on to find out more or call us now on 0333 566 8123
Government urged to promote leasing
There's a new revolution in the world of information technology; it's a revolution in the
way we pay for IT. As former Education and Employment Secretary, David Blunkett, said, "Small
firms need to embrace technology if they are not to lose out." We can help you!
We help businesses realise the benefits of IT by combining our technical customer and
We are independent, you have freedom of choice when it comes to any combination of hardware
or software and selected financial providers.
Businesses still favour outmoded financing methods
A recent survey of over 1.000 small and medium sized enterprises (SMEs) has found that while
most businesses are aware of IT leasing, nearly 90% of SMEs still prefer to purchase their IT
systems outright. However, purchasing IT equipment outright does not always make good commercial
sense. By leasing IT equipment, owners of SMEs can solve finance issues as well as provide their
businesses with a more comprehensive and flexible IT infrastructure.
Leasing enables users to preserve hard-won cash, gain real tax advantages, preserve existing
bank credit lines, and make a good match between income and spending patterns - all benefits
particularly relevant to SMEs. Yet the key benefit of leasing is in its ability to give SMEs
access to better IT systems. All too often the infrastructure in many businesses is extremely poor.
Less than 25% of SMEs have e-mail access, let alone internet capabilities.
With e-commerce set to be the business issue of the new decade, it is vital that SMEs invest
in IT if they are to remain competitive. Leasing enables smaller companies to acquire the systems
they need right now. There needs to be a revolution in attitudes towards technology financing.
By leasing IT equipment, SMEs can manage IT hardware, software, ongoing support costs and now
even web sites as an expense rather than capital. In terms of tax, cash flow and the ability to
upgrade easily, the benefits of leasing are clear. These are all key factors that both the
Government and SMEs can no longer continue to ignore.
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IT Finance: 'One week to five years'
"There's a new revolution in the world of information that has nothing to do with software.
Nothing to do with e-commerce. Nothing to do with applications, operating systems or connectivity.
It's a revolution in the way we pay for our computers."
Ten years ago, almost all businesses paid for their hardware and software on the day it was
delivered. Most still do. But a significant and growing minority do not. Instead, they rent or
lease their IT equipment and services.
Why? Because, there are significant advantages to not owning your own computers. Shrewd business
people - in organisations varying in size from sole proprietors to huge multi-nationals - have
known this for years. Many more are joining the club. At Printware, we specialise in helping
businesses realise the advantages of renting or leasing their IT.
Every time a business adds to its IT base, the question of funding arises. "Do we pay cash, do
we ask the bank for funds, or do we look to third party finance?"
Increasingly, companies are choosing the third option. Not necessarily because they're short of
capital, but because in today's business world, third party finance for IT makes perfect sense.
Many of Europe's wealthiest organisations lease their computers rather than pay cash. Some even
contract out the ownership and management of their entire IT infrastructure.
Thousands of MDs and FDs in business around Europe prefer to lease or rent than to purchase their
Why? Here are some of the reasons:
- We increasingly regard computers as variable costs rather than fixed capital items. So it
makes sense to pay for our IT as and when we use it.
- Equipment lifecycles are now so short that there is minimal attraction in having a fast
depreciating asset on the balance sheet.
- We need total flexibility in the way we use and account for our IT.
- We don't want our cash or credit lines tied up in computer equipment when they could be
working better for us elsewhere
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Further evidence of maturing leasing market
Computer leasing has really taken off - worldwide - as more companies recognise the benefits of
leasing, and leasing companies respond to customer demands for more innovative finance solutions.
Leasing is a preferred means of funding because it:
- Reduces financial risk on equipment obsolescence
- Attraction of 'pay-as-you learn' financing
- Identifies 'Total Cost of Ownership'
- Reduces pressure on other credit lines (mainly banks)
- Can match company budget
- Attraction of value-added services
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SME survey highlights leasing misconceptions
Despite international evidence that the leasing market is maturing, small to medium enterprises
(SMEs) remain largely ignorant of the considerable benefits of funding their IT needs via a lease.
That is the dramatic finding of a recent survey of over 1,000 SMEs in the UK. The survey, in
conjunction with the Finance and Leasing Association (FLA), also found that while three quarters
of SMEs are aware of the leasing option, less than one in six finances their IT infrastructure in
Senior SME decision makers seem determined to hold onto the traditional view that ownership of
technology is the best solution for their business. But this is to fundamentally misunderstand the
nature of both leasing in general and the specifics of IT.
Leasing assists cash flow and leaves existing lines of borrowing unaffected. And since leased
equipment is an expense rather than an asset, there are substantiall tax advantages to be gained from
financing IT infrastructure in this way. But perhaps most importantly, leasing allows businesses to
upgrade on a regular basis, and pay for modernisation incrementally. Given the cost and importance of
IT equipment, and its rapid obsolescence, buying outright is becoming an increasingly redundant option.
Key findings point to widespread misunderstanding
- 25% of SMEs unaware that leasing option exists
- 53% of SMEs completely unaware of the benefits of leasing
- 70% of SMEs unaware that leasing offers the flexibility to expand infrastructure
- 98% of SMEs unaware that leasing can avoid obsolescence
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Total IT Lifecycle Management
Printware has harnessed its many areas of IT expertise - leasing, rental, technical services
and remarketing - to create a fully integrated asset management service. The package represents
a genuine milestone in customer service.
Picture this: You're the IT director of a large company with, say 500, 1000 or maybe 10,000
plus employees, each with a PC or laptop and access to a printer. Your core function is to implement
an infrastructure strategy that enables the company to meet its commercial goals and maximise return
But that's not all. In the course of a year, at least 33% of the company's IT assets will need to
be replaced. It's your department's job to specify and source this new equipment. You are also tasked
with maintaining software licences and upgrades ... and organising repairs ... and disposing of old
equipment in accordance with EC environmental regulations ... and managing hundreds of contracts ...
and maintaining relationships with a large number of computer suppliers ... and working within
It's a busy department. And if that wasn't enough, your MD has begun asking difficult questions
about the 'Total Cost of Ownership'. If any of this sounds familiar it may be time to contact
Printware, to see what we can do for your business.
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IT Asset Management In Brief
IT assets management is a term used by finance companies to describe the full-service, life-cycle
management of computers in client organisations.
As well as providing finance to purchase computers, we can also offer additional services including
consultancy, asset tracking, insurance, disposal and remarketing. These are also known as value-added
The growth of value-added services has occurred alongside an acceptance by corporate computer users
that owning IT assets nearly always generates unforeseen costs and headaches. These include the costs
of administration and disposal of IT assets, as well as the costs of making poor decisions on
purchasing and finance. The collective impact is known as Total Cost of Ownership (TCO).
Our aim is to enable business customers to pay a regular, fixed fee so that they can concentrate
on using their IT assets to generate profit.
Call us on 0239 623300 and we will help you manage the
cost of your hardware
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