Sale and Leaseback
Keep flexible and adapt your technology requirements to meet your future needs
Your IT assets may meet current needs, but will they adapt to meet future needs? If disposal is not an option, you could consider a sale & leaseback facility. Capitas can purchase your existing hardware, dependent on the book value and specific requirements, and lease the equipment back to you for the remainder of an agreed term. This popular choice releases capital tied up in the assets, straight into your company’s reserves.
Features and benefits of Sale & Leaseback:
- Enjoy an immediate injection of cash from the sale of the assets
- Can include certain capital and tax advantages and improve key ratios such as gearing
- Simple paper transaction that is easy to administer
- Depending on facility structure this could result in the removal of the assets from the balance sheet
- Return your equipment at the end of the lease term and eliminate all costs and headaches associated with equipment disposal
- New for old on certain types of equipment - you can benefit from our disposal routes to release the cash value of these products and replace them with new under-managed service or contract- hire type arrangements
- Structure your lease to include product refresh options, ensuring you have the IT equipment you need for your growing business
Leasing is a powerful tool that, if well applied, can significantly reduce costs and act as a catalyst to drive overall systems management strategies.*
*Source: Dataquest
Hire Purchase
Spread the cost of your IT over its useful working life and pay for it using the revenue it earns!
Hire Purchase is a straightforward repayment facility that enables you to ultimately own the equipment. The cost of the solution can be spread over its useful working life and paid for out of the revenue it earns. Payment patterns can be tailored to suit individual needs, generally involving a deposit followed by a series of periodic instalments.
Features and benefits of Hire Purchase:
- With ownership you have total control over the IT equipment
- Ownership normally carries the potential for claiming capital allowances, including any enhanced first-year allowances
- VAT on the cost of the IT equipment is reclaimable
- Fixed or variable interest rate - you make your own assessment and choose accordingly
- The interest element of repayments can normally be offset against taxable profit
- The asset appears on your balance sheet
Operating Lease
Helping cashflow and making ‘off-balance sheet’ funding possible
Leasing IT equipment provides options that ownership cannot. The risk of equipment obsolescence under the terms of an operating lease lies not with you, but rather with us. Typically, the lease term is designed to match your company’s IT strategy with a projection of new technology or upgrade needs. You pay rent rather than expense depreciation and can upgrade to new products as they become available. In fact, industry studies show that circa 80 percent of IT equipment leases never come to term, since leasing makes it so convenient to trade up to the newest technology.
Under the terms of an operating lease, Capitas Finance builds in a residual value to reduce the rentals, therefore helping cash flow and making ‘off-balance sheet’ funding possible. Although you will never own the IT equipment, an operating lease does offer you the practical benefits of ownership without some of the potential burdens.
Features and benefits of Operating Leasing:
- Off-balance sheet reporting improves liquidity and solvency ratios such as current ratio, debt-to-equity, and interest cover
- Lower pre-tax rentals as the funder takes a residual risk on the equipment value
- Rentals are structured according to your cash flow
- Rentals can be treated as an operating expense and are fully allowable against taxable profit
- As the asset is treated as ‘off’ balance sheet we will claim the capital allowances and reflect this in your rentals
- Off-balance sheet funding means no requirement to depreciate
Leasing provides a means of transferring the residual and disposal risk to the lessor under contracted terms.*
*Source: Gartner Group
Finance Lease
All the benefits of ownership without the burden
Financially and operationally, many companies have found that simply leasing or renting hardware enables them to preserve cash and credit lines, reduce costs, simplify budgeting, and speed implementation.
A Finance Lease agreement gives you the full use of the hardware solution for an agreed period of time for an agreed periodic rental. It is a popular flexible method of funding equipment as it offers all the practical benefits of ownership without any of the potential burdens. Leasing enables you to adapt more quickly to changing competitive environments, and current e-business strategies underscore the importance of access to flexible and competitive financing options.
Features and benefits of Finance Leasing:
- Flexible repayment structures give you immediate and full use of the hardware for a minimal outlay
- Rentals can be structured to reflect cash flow requirements
- Fixed interest rate provides certainty of repayments and assists budgeting
- Rentals can be offset against taxable profit
- VAT is paid on the rentals not the purchase price
- The lessor claims writing down allowances, and these are reflected in the rentals you pay
- Retains existing credit lines and gives you a new source of credit for current and future needs
- Eliminates risks and costs associated with disposing of equipment at the end of its working life
With leasing, customers are better able to manage technology cycles and their computer equipment budgets.*
*Source: Computer Reseller News
Hardware
A range of solutions for all your hardware needs
From servers and notebooks to desktop PC’s, storage, networking and peripherals, leasing and financing solutions from Capitas can help you get the infrastructure you need right now, while preserving your flexibility and keeping you within your budget.
Our financing options include facilitated technology upgrades and can help you lower your total cost of ownership.
Furthermore, our comprehensive Managed Services offering helps you complete your IT infrastructure strategy for the entire technology lifecycle - from planning to acquisition, management and retirement of your equipment.
Capitas Finance can help you fund your entire solutions - hardware, operating software, services and maintenance from the vendor(s) of your choice. We provide competitive rates and customised solutions to best fit your requirements.
Financing your IT projects integrates all costs and payments in on facility. It turns large, up-front costs into pre-planned, budgeted payments, matching cost outlays with expected benefits and savings.