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Sunday, November 19, 2006

IT Equipment Leasing Now A $40 Billion Industry

A study recently released by the Equipment Leasing and FInancing Association of America with the Alta Group estimates the IT equiment financing market has grown to $40 billion per year. That's billion with a 'b'. You can read the press release about the study here.

The equipment leasing industry growth rate has exploded in recent years as companies look for more accurate cost forecasting and need greater flexibility. According to the Equipment Leasing and Financing Association of America's study, the IT equipment leasing industry has grown by 67 percent in just the past three years. In fact, IT equipment leases are one of the fastest growing sectors of the equipment leasing market. Over the past four years, the ELFA estimates the IT equipment financing counts for 22 percent of all equipment leases compared with 12 percent in 2002.

If you're considering an IT equipment lease or copier lease, please consider talking to the Graphic Savings Group.

What's more, IT equipment financing as a percent of total U.S. equipment financing activity nearly doubled from approximately 12 percent in 2002 to 22 percent last year, according to the new ELFA-Alta Group study.

What is an Equipment Sale Leaseback?

If you're asking what an equipment sale leaseback is, you're not alone. A lot of people have never considered an equipment sale leaseback and are missing out on a flexible source of capital that could help when resources are stretched thin.

An equipment sale leaseback is when a company sells an asset, such as business equipment it is currently leasing, for cash. That asset is then leased back to the company by a leasing company under a new contract. The leased equipment never leaves the premises of the company, in fact, it usually remains under the same service. As an added benefit, the seller retains ownership over the asset at the end of the lease term.

An equipment sale leaseback helps a company improve its working capital situation and make sure that it is using assets efficiently. The monthly payments can usually be written off for tax purposes and are independent of bank credit lines. Office equipment, Digital copiers, Warehouse equipment, and even company vehicles can all be part of a sale leaseback program.

If you're considering an equipment sale leaseback, please consider talking to the Graphic Savings Group.

Copier Lease Calculator

If you're looking for a ballpark estimate of what your copier lease might cost, a great place to start is a lease calculator.
The link above takes you to a calculator that will let you figure out your approximate monthly payments based on interest rate and the amounts involved. It lets you factor how many payments you want to make, what the residual amount will be, and the interest rate on your equipment lease. More importantly this lets you know the class of copier you can afford to lease.
You should always have an idea of the costs of a given copier lease because then you can budget accordingly and assess the numbers offered to you by an equipment leasing broker. It's important to be able to assess your expected revenue according to print runs in relation to your costs.
If you're considering a copier lease, please consider the Graphic Savings Group.
 
     


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