Computer Leasing

California First National Bancorp Comdisco, Inc. Econocom Group SA Electro Rent Corporation

Grenkeleasing AG Healthy Living Centres Plc Intelligent Micro Systems Data Ab International C.p.u. Sa

Marlin Business Services Corp. Parsys PeoplePC Inc. Sunrise International Leasing Corp.

Guide to Leasing Computer and IT Equipment

Leasing, rather than loans, is becoming the financing tool of choice for IT
By Daniel Kehrer

Small and mid-sized businesses needing computers, communications gear and other equipment associated with information technology (IT) have usually bought equipment with loans or cash. But leasing for IT and high-tech is becoming more popular. Small businesses are finding that leasing helps them keep their IT equipment up to date, avoid a hodgepodge of items and more easily manage the costs while avoiding obsolescence.

If you wait until cash is available to buy the equipment you need, you may find yourself forever behind the technology curve, trying to catch up. Lease financing is a great way for a smaller company to leverage its budget for purchasing IT systems and obtain the critical solutions needed to compete.

Leasing benefits include:

1. Capital conservation: Money is not tied up in equipment, leaving more cash available for personnel, office space or training.
2. Credit conservation: Your credit lines stay clear, putting more capital at your disposal.
3. Total financing: You can finance 100 percent of IT equipment costs, plus software, license agreements, maintenance and services.
4. Flexibility: A lease can be customized whether you have 5 employees or 500. Payments might be spread over 36, 48 or even 60 months, or adjusted to fit seasonal or annual cash flow needs.

Action Steps

The best contacts and resources to help you get it done

Discover what leasing has to offer Plug yourself into leasing basics, information on making an informed leasing decision and what to consider before you sign.

I recommend:  Choose Leasing is an informational Web site designed by the Equipment Leasing Association (ELA). You'll find authoritative answers on how to negotiate a lease, a lease vs. buy comparison, how leasing helps cash flow and how businesses use leasing to upgrade equipment.

Locate leasing companies for your IT equipment needs The Equipment Leasing Association offers a directory of leasing companies.

I recommend:  Search the leasing company directory at Choose Leasing. Apply these search tips to find the best fit.

See what Cisco has to offer Regardless of your company size or IT equipment and services needs, Cisco Systems Capital Corp. will work to help you structure a lease to fit your situation.

I recommend:  Cisco Capital has finance solutions for small and medium-sized businesses worldwide, offering competitive terms and flexible financing for phone systems, computers, office equipment and other technology.

Consolidate your IT with special lease financing HP offers lease financing for IT and other computer equipment.

I recommend:  Check out HP's IT consolidation financing, and other leasing solutions.

Tips & Tactics

Helpful advice for making the most of this Guide

• Leasing lets your business acquire new technology when you need it.
• Leasing offers balance sheet appeal, too. Unlike capital equipment purchases, an operating equipment lease has no depreciation schedule and is off the balance sheet. Plus, payments may be considered a deductible overhead expense.
• Leases are especially helpful if you need to upgrade early. Most leasing companies will buy back a lease and put you into something new at any time.