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Financing

The benefits of leasing vs. purchasing: A primer for reluctant clients

When presenting the leasing option to your clients, remind them of these compelling advantages of leasing:

Lower total cost of ownership (TCO) over the life of the solution
A lease lets your clients realize considerable savings compared to an outright purchase or scheduled purchase payments, because they pay only for the use of the equipment. Leasing also helps reduce the concerns and costs associated with equipment disposal.

More flexible payment options
Different payment structures can be tailored to fit your clients' specific needs. For example, periodic payments can be structured to increase, decrease or stay constant over time.

Faster implementation
Buying capital equipment often involves a lengthy budget approval process. Choosing leasing can help shorten the process, accelerating the implementation of the solution.

Reduced risk
At the end of the term, leasing gives your clients the option of simply returning the equipment, purchasing it outright or extending the contract, making it easier to cascade, upgrade or dispose of their equipment.

Minimized impact on capital budgets
Leasing is a great way to minimize the impact on your clients' capital budgets, since month-to-month payments usually come out of their cash budget.

Better protection against technology obsolescence
When your clients purchase, they typically depreciate the asset over a period of three to five years. Leasing eliminates the risk of needing to dispose of the asset prior to writing off its book value. It also eliminates equipment disposal headaches or trying to sell equipment on the secondary market. Clients often underestimate the challenge of disposing of outdated computers, a process that frequently involves logistical, legal and environmental issues. By offering your clients flexible mid-lease and end-of-lease options, they have the opportunity to upgrade equipment and take advantage of technology developments.

Easier asset management and disposal
For qualifying clients, IBM Global Financing can greatly streamline the task of asset tracking, which is required to maintain information on the equipment's physical location, upgrade status, warranty and maintenance. Tracking dozens, hundreds or thousands of devices across state and country borders can entail enormous effort and expense. Automated tracking tools provided by IBM Global Financing can help qualifying users manage their portfolios with less effort and cost.

Leasing vs. Purchasing -- Objections and Responses
We've prepared a document that looks at the most common reasons clients cite for wanting to purchase instead of lease, and explains why many of those reasons just can't compare to the real financial and technological benefits of leasing. (more)

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