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Better ways to pay…

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There are plenty of ways to fund your next IT purchase, but with more and more companies looking to conserve capital and move to a more OPEX style finance model, there are two in particular that are gaining popularity – Hire Purchase (HP) and Finance Lease.

Both options allow organisations to avoid IT obsolescence without taking a huge chunk out of the IT budget, giving businesses like yours the best of both worlds – the technology you need with payment options that suit your budget.

But which option is right for you and your organisation?

Hire Purchase

This option allows businesses to get instant access to the technology they need and then pay off the full amount over a defined period – taking on ownership of the hired asset at the end of the contract. The buying company can choose a term length and deposit amount that suits their budget and current circumstances – as with most forms of finance, the longer the agreement, the lower the payments.

One major advantage to this method is that payments and interest rates are set at the outset, allowing businesses to clearly plan for their purchase over a number of months. What’s more, larger payments can be made at the end of the contract in order to reduce monthly payments.

Finance Lease

While Finance Lease is similar to HP, there are a few key differences. Firstly, Finance Lease often allows for 100% finance with zero deposit – perfect for organizations who are looking to move to an OPEX financial model rather than CAPEX. Finance Lease also allows for more flexible payment options – often inclusive of insurances and maintenance contracts for the duration of the lease.

The key differentiation of Finance Lease is that the IT asset is never officially the property of the company that takes on the lease, they can either opt to buy the equipment at the end of the contract, or continue the lease at a nominal fee – in some cases sale of the asset can be agreed with a rebate claimed against remaining charges.

Which one’s right for me?

What’s right for one business is not always right for another and the best option for you depends on many factors. Keyzone’s team of expert advisers can help you asses your business needs – both now and in the future – to help you make the right decision for you and your organization. All of our finance options are provided by Dell Financial Services, who have years of experience in delivering financial solutions to businesses likes just like yours.

Speak to us today on 01753 695090 or email sales@keyzone.com

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