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Why Leasing and Financing IT and Telecom Equipment May Be Ideal

Although buying technology gives you ownership, it may not be the most economical means of acquisition. Technology depreciates at an amazing rate. Why use your capital to pay for a depreciating asset that offers practically no benefit when you have to replace it? Leasing your IT and telecommunications equipment, software and services from KCCi is an ideal business solution.

Equipment leasing is becoming more and more popular as businesses look for better ways to obtain the equipment required to stay competitive while preserving their valuable cash at the same time.  The great thing about leasing is that it eliminates the need to come up with a large sum of cash to procure the equipment you require. It also makes it possible for you to get the best and newest equipment with basically no down payment. Leasing, unlike a bank loan, is also usually very convenient to get started with.


Often, credit decisions are made within hours instead of days.  Equipment financing contracts are typically only one page long—not the usual stacks of documents banks require you to sign.  You can also get access to the funds in a much more timely fashion as compared to bank-based financing.

Of course, leasing does have its downsides. With some leasing plans, you won’t actually own the equipment—though this could also be seen as an advantage. When your lease is up, you can trade for newer models or even choose to buy outright.

Pros:

  • The initial costs are lower

  • Allows you to more easily budget your equipment purchases

  • No collateral required to obtain financing

  • Leasing makes it easier to get access to the current models of equipment

  • When your lease is up, you can trade-in what you have for newer equipment

  • Rates are based on the credit strength of your company—the better the credit history, the lower the rate

  • Enables companies with challenging credit histories to obtain capital


Cons:


  • In the long run, leasing is more expensive than buying

  • Leasing does come with a contract, just like any bank loan or credit card purchase


Conclusion


In the end, the most important thing to remember is that you should examine every purchasing possibility carefully before committing to any specific option. Choosing how to pay for your business equipment is going to play a big role in determining your company’s success, so always make sure to check and re-check your options before deciding on a specific direction. Whether you buy or lease, always choose the option that is going to make the most financial sense for your business’s current stage of development.  Most important of all—take the time to think through your options. Weigh the pros and cons before you buy.

Our Portfolio of Services


100% Financing

​NEC will help you finance your complete technology environment, from hardware to software and everything in between.

 

Purchase Options
​Depending on equipment type and lease terms, purchase options available can be negotiated and include $1.00 option10% option and Fair Market Value.

 

Flexible Terms
Depending on equipment type, lease terms can be as short as 12 months or as long as 6 years.

 

Master Lease
To offer complete flexibility in lending, NEC can provide you with a 
Master Lease Program, into which multiple schedules can be incorporated for each category or unit of equipment. The Master Lease structure enables NEC to offer central or multiple location billing, multiple lease terms and purchase options, which can be customized for various groups of equipment.

 

Convenience
NEC Financial Services Leasing Solutions are convenient because they combine diverse units of equipment and systems into one flexible, all-inclusive Master Lease Agreement. You retain the ability to segregate units of equipment or systems into separate lease schedules, enabling you to more precisely monitor and identify each category in the future.

 

Flexibility
Customized Leasing. By providing separate lease schedules, NEC can individually tailor the financing terms of each category of equipment to meet your specific needs. In other words, one schedule might have a 5-year term, while another has a more appropriate 3-year term. Purchase options can vary by schedule.


Customized Billing. Another advantage to multiple schedules is that the billing location for each schedule can vary. This is advantageous when costs need to be allocated to separate departments, divisions or budgets. Master billing can still be provided.

Multiple Installations. Separate schedules also enable you to commence the lease on part of the entire purchased system or systems, while the balance of equipment is still pending. You can begin payment on the schedules of received equipment, without having to wait until the entire order has been shipped. This is often preferred or required by equipment suppliers.

Our Portfolio of Offerings


Fair Market Value Lease

Get the lowest possible lease payment with an end of lease purchase option not to exceed the fair market value of the equipment. This type of lease may have significant tax advantages. 


$1 Purchase Option Lease

This lease type entitles the customer the benefits of ownership, such as interest and depreciation deductions. After all the lease payments are made, the customer can purchase the equipment for $1.00. 


10% Purchase Option Lease

At the end of the lease, the option to purchase is fixed at 10% of the original cost allowing for lower monthly lease payments and a predictable cost of purchase at the end of the initial lease term. 


Balloon Lease

A balloon lease allows for a commitment to a guaranteed purchase price. This is beneficial where the value of the equipment is strong and the lessee wants to leverage that value in order to have a lower monthly payment. 


Step Lease

Some equipment requires time to realize its value. A step lease allows lower monthly payments for an initial period then "step-up" to the normal payment for the remainder of the lease term. This type of lease is ideal for equipment that has a longer training period or might generate a higher level of revenue at a later date. 


It is also beneficial for customers who expect their revenues to grow over the term of the lease. They make lower payments in the beginning and higher payments as their business grows. 


Deferred Payment Lease

This lease has no payments for a specific period of time. For example, the lease may have no payments for the first 60 or 90 days. 


Seasonal Lease

This type of lease has no payments or reduced payments for a specific period of time each year. The lease is structured to benefit those customers that have a seasonal business. 


Custom Lease

Equipment leasing is flexible! You can rely on our experienced sales representatives to create a lease to meet your needs. 


Municipal Leases

Who is eligible for a municipal lease? Generally any government organization (city, county, sate, special district or authority) including certain schools, universities, hospitals fire districts, water districts and housing authorities. These entities are usually tax exempt. Municipal leases have special clauses which allow for cancellation of the lease if they do not receive their funding. Municipal leases have a $1.00 purchase option.


Maintenance Financing

NEC Financial Services provides financing for long term maintenance agreements. This allows our customers to make one payment that includes the equipment financing and the associated maintenance. For more information on this product, please contact your NEC Financial Services Representative. 


NEC Tech Refresh Lease

The initial sale is not the end but the beginning of the support provided by NEC Financial Services. As a customer's needs change, whether for additional equipment or a larger system, NEC provides the flexibility to meet those needs. This can include: 


  • Providing additional Schedules to the Master Lease Agreement on a continuous basis.
  • Providing the Schedules for the same purchase option or a $1.00 purchase option. (The availability of a $1.00 purchase option is very important to customers who are near the term end of a fair market value lease.)
  • Terminating the current lease Schedule and writing a new schedule for the cost of replacement equipment plus the balance of the original leased equipment ("Rollover"). 


This service benefits each party because: 


  • Extends the customer relationship.
  • Provides the Dealer with a selling opportunity for new equipment.
  • Provides the customer with an affordable technology migration path. 

KCCi & NEC Financial Services - Your IT & Telecom Leasing Partners 


Why agonize over the question; which is the best choice of phone system for my business? 


On-Premise IP PBX  vs.  Hosted IP PBX  


To solve the problem, all you need are the following from NEC & KCCi.

  • NEC SV9000 Series Telephone System.
  • 5-Year Lease from NEC Financial Services.
  • Lease Options: $1, 10% & FMV Purchase.
  • Low Down payment, (2-Months).
  • 5-Year Warranty & Software Assurance.
  • ​Reliable CLEC Telecom Services, (POTS, PRI, SIP & Internet, etc) KCCi as Agent.


In most cases, the savings in telecom & Internet services offsets all or most of the cost to lease or purchase a new NEC SV9000 Series Telephone System. Including: installation, on-site warranty & software assurance. The ROI, (Return on Investment), is usually quick, which means that money can be utilized to enhance or increase Internet speed & bandwidth, used for business expansion, new equipment, or as savings. 


Wow! We just solved the on-premise IP PBX vs. hosted IP PBX dilemma...!  Let's Talk.


Call KCCi, Because Business is On the Line!


(888) KC-4-KCCi  or  (888) 524-6398 


Our goal is to be your strategic business partner. Providing financing solutions with the human and technological resources dedicated to delivering products and services designed to enhance your business performance.


NEC Financial Services delivers tailored leasing structures of extraordinary flexibility to customers nationwide and has expanded to include a complete range of technologies and services.


Established in 1986, as a wholly owned subsidiary of NEC Corporation of America, we offer financing services to Solution Providers, System Integrators, Resellers & Dealers and their customers by supporting the sale of products and solutions to businesses in the United States.


We are committed to providing you:


  • Quick decisions and turn around
  • Simple, understandable documentation
  • The financing tools to help our customers expand their business
  • Customer Service we can be proud of
  • Easy upgrade path for the future
  • Conduct focused on Integrity

Or if you prefer, download a convenient .PDF format and fax back to KCCi at (877) FAX-KCCi  or  (877) 324-5224.

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