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IT Finance

Are you considering upgrading or purchasing new IT equipment?

indepth IT Solutions can provide access to finance for new IT purchases to reduce the requirement for large upfront payments.

Below is a brief summary of purchase options for your information.

Rental

Tax advantages - rental normally qualifies as a 100% tax dedication
No residual risk liability - eliminating any potential loss from the sale of equipment
Preserves working capital - you have the ability to obtain new technology, without committing large capital sums
Flexibility - can add or dispose of equipment during the term
Maintenance, software, installation and other intangible items can usually be included
Reduced risk of obsolescence
Several end of terms options
GST on payments can be claimed on BAS

Lease

Needs to be shown on the Balance Sheet as both an asset and liability
Residual value liability
Preserves working capital - you have the ability to obtain new technology, without committing large capital sums
Not as flexible as rental
Normally for hardware items only. Any intangible items will probably require a cash payment
Risk of obsolescence
Minimal end of term alternatives
GST on payments can be claimed on BAS

Purchase

Needs to be shown on the Balance sheet as an asset, showing the reduction in cash reserves or increase in liability in overdraft
Yearly accounting requirements of calculating the depreciation on the asset and the relative balance sheet adjustments will be required
Reduces Working Capital. Having to pay completely for the asset today
No residual value liability
To upgrade to new technology you would need to trade in or write off the old equipment and then find the funds to purchase new equipment
Add ons and upgrades will be paid for in full, which again reduces working capital
Risk of obsolescence

Important Information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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IT Finance

Contact us on 02 8907 4222 to ask about IT finance