Who Should Use Financing For Tech Equipment?
Who do you think should finance their technology equipment to operate their organization?
- Only small companies?
- Only large companies?
- Companies in certain vertical?
- Organizations with lower cost solutions?
- Organizations with higher cost solutions?
- Specific geographical areas?
- Customers who have cash/capital?
- Customers who don't have cash/capital?
Do You Have The Right Mentality?Ponder this, it is common practice for companies to lease a copy machine for an office. It is a large expenditure that can become outdated or outgrown rapidly. The use and operation of the equipment is more important than the need to own it. Yet, when it comes to equipment like phones solutions, video conferencing, security surveillance, audio visual, data networking or any other related technology equipment for that matter, too many believe they have to pay out the large capital outlay to own it.
Frontier Shield - The Smart Way To PayFrontier Shield is not a lease. It is different than a cash purchase, bank loan, or traditional capital expense lease. It allows you to use your technology equipment as a service, like a termed rental in a low monthly payment. You are protected from technology obsolescence, it gives you the freedom and flexibility to upgrade and adjust your equipment if it no longer meet your needs. You are covered with natural disaster protection, multiple end of term options, and you can take advantage of accounting perks because Shield is considered an operating expense.
The Low Interest Rate TrapWhen a customer pays cash or uses a bank loan because they were enticed by the low interest rate there is no payment flexibility, ownership of a lot of equipment that loses value rapidly is the only option, and when considering the financial implications associated with the time value of money, it can often be a very costly option. Also, there may be a negative impact to credit ratings and financial ratios. That can have an effect for future needs, like acquiring revenue generating type assets.
How To Make The Right Decision?
Research and understand all of your payment options available and evaluate them based on the financial situation and needs of your business. Also, you can recruit an expert. Frontier Financial Solutions has designated contacts that are dedicated to supporting Frontier CPE sales AEs to provide the best recommendations for customers.