Server Financing And Leasing
|Amount to Finance:|
|Financing Type:||Equipment FinancingWorking Capital|
|End of Term Option:||N/A|
|Sample Time in Business:||5+ years|
The dilemma of buying vs. leasing is nothing new; consumers have been wrestling over this decision for decades. It should come as no surprise then that the same conundrum exists with a company’s information technology (IT) equipment. The need to have the equipment for the long-term may make buying it outright seem like the natural choice. Servers themselves only have a useful working life of four to five years, plus they typically lose all of their capital value after three. Yet when it comes to purchasing servers, it’s truly a case of buyer beware. Advances in server technology often render current servers obsolete in less than two years. For those companies that bought their servers, this creates the problem of having to retire those servers early while still managing the assets from the initial purchase.
Benefits of Server Leasing and Financing
The current trend in the IT industry is definitely moving towards server leasing. According to Tom Adams, HP’s Managing Director of Financial Services in The Americas region “When looking at equipment that depreciates rapidly and loses much if it’s value in a relative short period of time,” as servers have been shown to do, “it makes sense to lease.” Thus recent years have seen HP extend its equipment options to include leasing and a “pay-per-use” program. Other large IT manufacturers, such as Sun Microsystems and Dell, have done the same.
Most customers hope to grow their IT needs significantly over time.
Having the option to easily upgrade their server technology through a lease agreement gives companies a distinct advantage over their competitors who own their own equipment.
Thanks to not having to put up a significant capital outlay up front, as well as the ability to keep credit lines open to address other concerns, leasing offers a significant amount of financial freedom.
Ready to get Started?
Why handicap your company’s financial and IT capabilities? Server leasing is quickly becoming the preferred option for business. Finding the financial support for your server lease can be a breeze by simply making a quick phone call to our team here at Direct Capital. We have the experience and the know-how to arrange a server financing package that will help meet your company’s IT needs. To speak with one of our financial experts, call us at 1.866.777.0117 today.