INFORMATION TECHNOLOGY (IT) CONTRACT HIRE

Contract Hire is an excellent way to gain use of an IT solution combining support and other services within a periodic payment.

Essentially, the user pays fixed repayments and in return receives all the benefits of operating with state of the art technology including the delivery, management and disposal of such product. As customers move from the old economy to e-business based tools we can also include ongoing hosting, ASP and maintenance payments all within one payment.

One of the biggest benefits of this facility to customers is that it may offer off balance sheet financial reporting. This can result in improved solvency and liquidity financial ratios, which are important when attracting new investment.

Key benefits include:

• Services and/or maintenance costs can be included within the agreement - no need for the customer to pay separately for ongoing services and support; everything is included within the minimum or fixed period rentals.

•  On or off balance sheet financing – customer chooses which option is more suitable (subject to auditor’s approval).

• One periodic invoice – all customers IT expenditure can be rolled into a single document with detailed invoicing and group collections. This simplifies the accounts payable process and aids budgeting.

• Reduced life cycle costs - rentals might only be charged on a proportion of the original purchase price, keeping repayments to a minimum.

• Fixed rentals agreed in advance – regular payments are spread to match cash and/or income flow; predictable payments facilitate project control.