CHANNEL INSIDER: Use Financing to Boost SalesCredit Options for Solution Providers
Technology leasing is much like leasing a car. Customers pay a monthly fee for a fixed term of 24 to 36 months or longer. In return, they get the use of equipment. At the end of the term, customers have the option to buy the equipment for a reduced price, or they can turn around and lease a new piece of equipment instead. The technology provider can resell the asset when it is returned. The retained value of the asset allows the technology provider to offer a lower monthly price than would be possible if the customer bought the technology outright. Often the solution provider gets a small cutabout 1 percent.