Benefits of Technology Rotation Leasing

Flexibility:

Uncertain about your future technology needs? Fair Market Value Leases give you the opportunity to purchase the equipment at the end of the lease, turn the equipment over to AFG, or continue monthly rental.

Rotation Schedule:

Do you need to stay on the cutting edge? A Fair Market Value Lease can be used to cycle your equipment every 2-3 years, depending on your needs. A typical scenario is to replace half of the machines in year one on a two-year lease, and repeat the process the following year. Fair Market Value Leases allow businesses to stay on the cutting edge with minimal capital outlays.

Tax Benefits:

Computer equipment purchased with cash or on loan will depreciate over a 5-year schedule. The majority of our Fair Market Value lease customers write off their entire purchase over the 2-3 year lease term.

Flexible End of Term Options:

Customers can choose to purchase or return individual units of their Fair Market Value Lease. For instance, on a lease consisting or 25 computers, you could choose to return 15 machines and purchase the remaining 10 to keep in the business.

Rotation Schedule:

Leasing allows you to conserve your existing cash reserves and bank lines. Fair Market Value Leases provide your business with off balance sheet financing.

Specific programs:

• 1. Laptop programs. The main reason people are leasing laptops is because battery life and wear and tear after 2 years. We usually lease laptops on a 24-month rotation schedule.
• 2. We typically lease desktops on a 36-month program. There are some leases that are shorter term, but our partners see the value and cost savings in rotating their equipment out as opposed to "band-aid and paper clipping" their machines together past the manufactures warranty
• 3. Servers. Most companies keep their servers past 3 years. However, we do have quite a few companies that lease their servers through AFG for 36 months. In most cases, these companies are high end users with frequent upgrades or growth.

In addition to providing the customer up to date technology and helping protect cash flow the program provides repeat business for the vendors involved. In the example provided the customers are returning their equipment and upgrading at the end of the term. To the vendor this ensures repeat sales on a set schedule.

The best fits for the Technology Rotation Leasing are the companies who use and vendors who sell what we define as Tier 1 equipment. Because our residuals are based upon our ability to resell the equipment on auction websites, your costs remain lower.

DELL and HP equipment offers us the best resell value.

This will be Great for Your Business.

Contact us today and one of our financial specialists will give you a no-cost analysis of what we can provide for your company.