April’s Business Essentials Program partner is First Financial Corporate Services, an equipment financing organization with exceptional lease rates to help AZTC members get the best leasing rates and flexibility on IT equipment, manufacturing equipment, material handling equipment, and medical equipment. This post is written by First Financial Corporate Services’ Senior Vice President of Business Development, Todd Bankofier.
In last week’s blog I talked about U.S. technology orders growing almost 13% year over year in January and February. One of the reasons for this spike is that companies held on to technology for longer than usual in this economy. Imagine that: with optimism of a revived economy comes the need to retool technology and take advantage of technological advancements that increase productivity and profit margins.
Equipment leasing plays a big role in this refresh strategy. American businesses, non-profits and governments invest over $1.2 trillion in capital goods each year. Some 51% or $628 Billion is financed through loans, leases, and other financial instruments. Leasing companies like ours – First Financial Corporate Leasing – are a great resource for financing, but play additional roles as well:
1) We can help remove and sometimes bring economic value to currently installed equipment… offsetting the cost of new technology.
2) We help structure leases that fit current budget constraints including eliminating current book value for obsolete, depreciating assets.
3) Unlike banks and manufacturers leasing companies, independent leasing companies like First Financial make sure our clients buy technology at the best market prices. We have a vested interest in making sure our clients do not overpay for technology.
4) Independent leasing companies like First Financial can also provide more flexibility than banks and manufacturer leasing companies. After all, we are in the business of reselling or disposing of the technology when the lease life expires.
If your equipment has hit the end of the road and no longer can be depreciated or properly maintained, keep in mind the notion of leasing. It will put your company back in a competitive mode and will preserve precious cash to grow your company.