Leasing Options

Operating Lease

Insight would assume that the asset will have a resale/residual value at the end of the lease period and therefore you would pay a lower rental value. At the end of the contract term you may return the equipment to Insight who will resell the equipment at the assumed resale value in order to realise a profit. As Insight assumes the risk associated to the asset, it is shown on their balance sheet and not yours. This is known as ‘off balance sheet funding’.

Lease Rental

IGF’s standard lease option offering. IGF will procure the goods in question and you will rent the equipment from IGF. Once the lease term has ended IGF will own the equipment. This option offers you an extremely flexible choice, especially if the group wish to upgrade or add equipment before the lease ends.

Lease Purchase

Should you choose to lease purchase the goods the group will own the equipment once the lease has ended. If you wish to make additions to the equipment list then a separate agreement must be undertaken, therefore this option is not as flexible as a lease rental.

Residual Based Lease

You will have the option to buy the equipment at the end of the lease period with a ‘balloon’ payment. Payment will be lower than the lease rental price but the agreement is not as flexible as the residual payment must be taken into account when upgrading.

Master Leases

The master lease option is based on a lease rental agreement and is ideal should you wish to roll out an upgrade programme over a period of time. A Master Lease would be put in place and every time you wish to take out more equipment it is added to the lease as a schedule. This option keeps documentation to a minimum and is highly flexible in terms of add-ons and upgrades.

Rolling Contracts

Rolling/revolving contracts can be combined with Master leases and would be best used if you wish to enable continuous upgrades. You would have to plan upgrade paths for equipment. Once certain milestones have been reached, i.e. installations get to an agreed age, equipment will be replaced with new technology and the contract will be rolled over for a new period.

Software Leases

IGF can offer software only leases where licensing rights are with you from inception and stay with you on payment of final rental.

Technology Refresh

This option would allow you to take the equipment on a lease and add to the equipment list or replace a percentage of the equipment. This is a very flexible option and the contract is simply modified to transact over an alternate period if an amendment is made.

More Information

• Discuss Your IT Leasing Requirements