In addition to a traditional cash purchase with payment terms, many of our Enterprise clients have chosen to benefit from spreading the cost of an acquisition over a longer period. The example given is for 3 years, however longer or shorter terms are also available.
Benefits of Managed Service Rental:
The main rationale for acquiring the equipment on a Managed Service Rental is as follows:
Spread the cost of the asset over its useful life – IT is generally accounted for over 3 years and is depreciated at 30% per annum.
1. Spread the cost over the maintenance lifetime agreement typically 3 years
2. As the rentals are OPEX (off balance sheet) the rental payments can be claimed for tax allowances as a normal running cost of the business.
3. Cost savings / gains from the new equipment will be spread over a number of years – spread the cost over the period of the gains and link to the cost savings in choosing an Enterprise EDA device.
4. As the funds not spent on a cash purchase will be kept within the business they will attract year on year returns at the company’s internal rate of return.
5. Ease of upgrade or amendment to devices – ability to refresh if required.
6. No disposal costs if equipment is obsolete at end of term or a refresh sought.
7. Flexibility – at the end of a rental you can acquire the equipment after one extra month, or return and on-going payments used towards latest equipment.
8. AchieveTech can combine with voice and /or data cards and charge one monthly rental for all costs associated with devices at a discounted cost.
9. Achievetec can include a unique software, services and hardware mix not normally offered on monthly terms to further increase the productivity gains from moving to a mobile working approach.