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INFORMATION TECHNOLOGY
(IT) LEASING & RENTAL PLANS
Leasing is recognised
as one of the most economic, flexible and tax efficient ways for
funding IT. A lease is a form of rental and provides the customer
(lessee) with specific use of products over a pre-agreed period of
time. Leasing has the practical advantage of transferring the risks
of ownership to the finance company (the lessor) whilst providing
the lessee with the productive rewards of usage.There are
essentially two types of lease agreements, recognised by their
distinctive accounting and tax treatments: finance leases and
operating leases. Finance lease rentals fully reflect the cost of
the asset whilst operating leases take into consideration the likely
resale value of the asset when calculating the pre-tax rentals.
Key benefits of leasing include:
- Upgrade and exchange rental programmes to
help organisations improve cost performance by introducing new
technology.
- On or off balance sheet financing - you may
have a preference regarding the balance sheet presentation of
the system costs. WCI addresses the guidelines and regulations,
which determine tax treatment.
- A single financing scheme which covers all
aspects a system proposal. You define your own lease agreement
by choosing the elements you want included; software,
implementation services, facilities management, outsourcing,
support, hardware and much more.
- 100% tax allowable payments and greater
flexibility over the depreciation period.
- Flexible payment profiles structured to meet
cash flow requirements, income streams and roll out schedules.
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