Perhaps more than any other industry, financial firms rely heavily on premier technology. However, this typically requires a significant up-front investment in hardware and other IT equipment. To avoid this major cost, many alternative investment organizations are opting to lease the equipment they need rather than purchase it.
Leasing is one of the most flexible and cost-effective financing tools available. Through technology leasing, businesses can easily make changes to their IT environment without worrying about accounting concerns such as write-offs, depreciation or disposal costs. Leasing is particularly popular among firms seeking to maximize corporate finance efficiency while using their world-class technology infrastructure as a key competitive differentiator. Leasing offers an efficient and effective strategy for organizations looking for maximum return from their IT investments with minimal risk.
I recently sat down with Pam Corrigan, Eze Castle Integration’s Lease & Maintenance Specialist, to discuss why leasing makes sense for hedge funds and other financial organizations:
- It helps free up capital. Leasing helps firms conserve capital. The ability to keep and use cash for other investments is extremely attractive, especially when considering that the alternative is tying up those same funds on depreciating expenses. Additionally, there are sizable tax savings that can be realized through leasing.
- It allows for simplified budgeting. Simple monthly payments, which can be tailored to meet your unique business needs, replace large cash or credit outlays.
- It results in increased flexibility and scalability. Leasing allows firms to expand or renew their IT infrastructures independent of budget cycles. IT budgets can be stretched by paying only for the use of the equipment, as opposed to investing heavily in the equipment itself up-front. Leasing allows funds to align the monthly cost of IT assets with the benefits they provide.
- It can reduce total cost of ownership. Effective leasing strategies can reduce total cost of ownership. Terms are typically customizable to match your specific financial and technological needs. Maintenance licensing and support can be added to ensure coverage over the useful life. Leasing also eliminates the costs of equipment disposal.
- It helps to protect against risk. Older technology can be expensive to operate and maintain and is often less efficient. Leasing establishes a schedule for equipment renewal that can protect against obsolescence. Leasing gives you the ability to upgrade and refresh as your technology needs evolve, often with little or no change to your monthly budget.
- It’s a competitive differentiator. Investors are likely to place their trust in a firm with a top quality IT infrastructure that is highly flexible and efficient yet requires minimal capital investment or risk.
Eze Castle Integration recognizes the value leasing can provide firms. We offer a variety of leasing options to ensure clients receive an attractive leasing package every time. Our dedicated, in-house leasing and maintenance specialist is available to help with all questions regarding leasing. Contact Eze Castle today for more information.
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