IT Operating Lease

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IT Operating Lease - helping cash flow and making 'off-balance sheet' funding possible
IT Operating Lease
Leasing IT equipment provides options that ownership cannot. The risk of equipment obsolescence under the terms of an operating lease lies not with you, but rather with us. Typically, the lease term is designed to match your companys IT strategy with a projection of new technology or upgrade needs. You pay rent rather than expense depreciation, and can upgrade to new products as they become available. In fact, industry studies show that circa 80 percent of IT equipment leases never come to term, since leasing makes it so convenient to trade up to the newest technology.

Under the terms of an operating lease, Capitas builds in a residual value to reduce the rentals, therefore helping cash flow and making 'off-balance sheet' funding possible. Although you will never own the IT equipment, an operating lease does offer you the practical benefits of ownership without some of the potential burdens.

Key benefits:
  • Off-balance sheet reporting improves liquidity and solvency ratios such as current ratio, debt-to-equity, and net working capital
  • Capitas takes the residual risk on the equipment's value
  • Rentals are structured according to your cash flow
  • Rentals can normally be offset against taxable profit
  • As the asset is treated as 'off' balance sheet we will claim the capital allowances and reflect this in your rentals
  • Off-balance sheet funding means no requirement to depreciate
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IT Operating Lease
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