Technologent prides itself in being a client friendly, manufacturer agnostic and flexible organization that enables clients to overcome purchasing, budgeting and cash flow concerns.
We provide a variety of finance terms and structures as well as a unique variable payment consumption pricing offering.
A Fair Market Value or FMV lease is a Traditional Lease. When constructed properly, it also qualifies as an Operating Lease, per accounting standards. A FMV lease allows clients to utilize the equipment for a designated number of months with varying end of lease options.
These end of lease options include the ability to continue to lease the equipment, return the equipment, upgrade to new equipment, or purchase the equipment at the then determined fair market value price.
A $1 Buyout or Capital Lease is ideal for a client who wants to own the equipment at the end of the lease.
It is not a true lease like a Fair Market Value lease, it is a loan with payment terms. At the end of the term, the equipment ownership is transferred from the obligor the client.
An Installment Payment Agreement or “IPA,” is a shorter form finance agreement allowing clients to spread payments out over a period of time. This type of agreement is less intrusive than a full-blown master lease agreement and can also be used for soft-cost transactions, like software and maintenance.
From a budgeting and accounting perspective, IPAs are also treated as a Capital Transaction, where the client makes the payments and ownership is transferred to the client at end of the term.
One of the biggest attractions of moving to the cloud, is the ability to align payment with actual use. Clients want better value out of their IT investments and don’t want to make large upfront capital expenditures that may sit idle, depending upon their ever-changing business needs.
If clients have a good sense of their historical and future growth and can commit to a certain level of consumption over time, TFS can work to structure a solution to meet their business objectives.
Allows companies to align their spending and manage cash flow based on technology usage over time versus large up front capital investments.