Financing & Leasing Services

We back up our IT industry expertise with flexible financing options,designed to help you maximize the business value.

DELIVER THE BUSINESS VALUE.

Premier’s financing options help organizations move technology assets and staffing costs away from capital budgets and over to the operations and management budget. By doing this, you can protect valuable IT programs from funding cuts and minimize peaks in capital expenditures. In addition, subscription and leasing programs enable customers to align predictable payments with a particular business objective to better analyze its performance and value to the organization.

Financing Options Available:

1. Lease to Own Plan (LTOP) – The most basic level of financing technology assets.

2. Lease with Option to Own (LWOO) – The option to own the assets at the end of the lease term or to apply funds towards new technology and continue financing the equipment.

3. LWOO with Refresh – The benefits of LWOO plus the option to cycle new technology throughout the term of the agreement.

4. IT as a Service – A value-based offering ideal for performance-based contracts that provides a technology lifecycle management approach using a services contract.

Learn More

45%

Of Data Centers Run Over Budget

7%

Of Data Centers Underestimate Personnel Requirements

56%

Average Shortfall In Data Center Value Delivered

 

 

Affordable Payment Plans

Take advantage of multi-year discounts and predictable, fixed licensing and maintenance costs with customized payment plans to fit your budget.

Lease Program FAQs

Why lease – why not just borrow the money?
If you borrow money to buy and own equipment, you are using up available credit, which, if used for other purposes, has the ability to earn a return much higher than the cost of the lease payments. Leasing offers a new source of credit with the added benefit of being able to “expense” the payments in most instances.

How do I decide if leasing fits my company’s needs?
The first step is to decide what equipment you may want to own “forever” and what might be more practical to lease. If you do this objectively, you will probably find a relatively small pool of “must own” equipment. For example, many people are surprised to learn that the major US airlines lease most of their aircraft. The airlines have decided to save their cash and borrowing power for operating requirements.

What type of products can be leased?
Premier offers leasing on IT hardware, software, maintenance and professional services.

Is there a minimum & maximum dollar limit?
Not really. We actually go as low as $1000, but that really wouldn’t make sense in most cases. Typically, it’s best to consider leasing on transactions over $5,000. There is no maximum dollar limit on our leasing programs.

How much does leasing cost?
The actual rental payment depends on the equipment you select and how long it will be leased. Leasing is NOT expensive. The savings in accounting costs, better use of capital, the total cost of ownership and the revenue realized will justify the rental payments.

How long does a lease last?
Assets that tend to become obsolete quickly (such as computers) usually have lease term of two to five years. Some lease terms are driven by how long the lessee wants to use the assets without moving on to newer equipment or technologies. Other lease terms are based on accounting issues, which limit the length of certain leases to no longer than 75% of the equipment’s useful life.

How are lease payments calculated?
The lease payments are determined by a lease rate factor, which is a percentage amount used to calculate rental payment to a lessee for the use of the asset. The lease rate factor is then multiplied by the equipment cost to determine the payment amount.

Are there tax benefits of leasing?
According to the new tax deduction limits for equipment set out in section 179 of the US tax code, in some cases as much as 100% of the equipment cost, up to the specified limit, can be immediately deducted from your taxable income. The relative benefit to leasing versus purchase will vary depending on the depreciable life of the equipment, the lease term and payment structure, and the marginal tax rate for your company.

Am I guaranteed to get approved by submitting an application?
Premier leasing partners will review every application submitted. In addition, Premier has strong relationships with several leasing partners, which can be leveraged to your advantage, thereby increasing the likelihood of approval.

How long does it take to get approved?
Credit decisions on transactions below $100k are generally made within 24 hours. Decisions over $100k are general made within 48 hours.

Do applicants need to submit financial statements?
Typically, for transactions up to $100k only a completed application is required. For transactions greater than $100k financials are required unless public information is available.

What happens at the end of a lease?
The lessee is required to notify the funding source in writing of its intent to purchase or return the equipment no later than 90 days prior to the end of the original term of the lease.

What happens if the leased equipment is defective?
Even though end-users don’t own the equipment, standard manufacturer warranties do apply. So if the equipment were defective, it would be handled the same as equipment that was purchased.

Is insurance required for the leased equipment?
Yes, insurance is required on every lease. Most business insurance policies cover the equipment leases, but if the end-user chooses not to insure the equipment the lease company will add it to the lease.

Can services, configuration, consulting and training be added to a lease?
Yes, it can. However, it usually cannot exceed 25%-30% of the total lease amount. 

Paints and Materials Supplied by: 

 

Contact Us

Modern Auto Body

561 N Montello St,

Brockton, MA 02301

Phone. 508-580-6422

Fax. 508-587-7954