What type of lease do you offer? AGI offers Fair Market Value leases that may qualify for Operating Lease treatment under FASB 13. On certain equipment, 10% buyout and $1 buyout leases are also available. We also offer the following lease structuring options:
Why should we enter into an operating lease? Most companies use operating lease financing for some combination of the following reasons:
- "Single payment leases"
- "Step" or "Unequal Payment" leases
- "Seasonal" leases
- "Deferred Payment" leases
Do we have to source our equipment through AGI? No. If you wish AGI to assist you in sourcing equipment, we would be glad to do so, but you may source the equipment through the vendor of your choice.
- Shifts technological obsolescence from user to Lessor
- Avoid book value losses upon disposition
- Conserve traditional credit sources
- Improve cash flow; only a portion of the cost of the equipment is
financed in the lease payment
- Improve financial ratios: you buy the use of the equipment rather
than the equipment itself
- Flexibility to upgrade and change equipment to meet corporate IT
needs as they occur
- 100% tax deductibility of payment
- Deferral of Sales Tax payment; tax is paid on each lease payment
rather than on the acquisition price of the equipment
- Improve IRR; cash remains in the company earning its rate of return
rather than being invested in a depreciating asset
- Simplifies and improves accuracy of budgeting
Can software be leased? In general, yes. If a customer's credit
is standard or better software can be leased with hardware subject to
the constraints of qualifying the lease for operating lease treatment
under FASB 13.
What kind of equipment can be leased? Most any kind of high
technology equipment. For example, mainframe computers, Unix and Wintel
servers, Desktops,Laptops, Telecom Equipment, PBX's, switches etc.
Does equipment have to be new? No. Used equipment may also be leased.
What manufacturers' equipment may be leased? All major manufacturers, including but not limited to Cisco, IBM, Hitachi, HP, Nortel, Sun Microsystems, Dell, APC, Verizon, Lucent, EMC, Brocade, Checkpoint, Network Appliance, Toshiba, Fujitsu, Konica, Minolta, Cannon, Ricoh and Toshiba.
What lease terms do you offer? Any term from 6 to 60 months depending on the useful life of the equipment.
What is the minimum value of equipment that may be leased? $5,000.
What happens at the end of the lease term? You have 4 options: (1) extend the lease based on the end-of-term FMV; (2) purchase the equipment for end-of-term FMV; (3) upgrade the equipment and write a new FMV lease at a term of your choice; (4) return the equipment to AGI with no further financial obligation.
What is Fair Market Value? The value of the equipment at a given point in time as established by a typical retail transaction. We use brokers experienced in the type of equipment being leased to determine Fair Market Value (FMV).
How do I get a lease quote? Send us an e-mail with (1) your company
name; (2) a vendor equipment list with pricing;(3) the term for which
you wish to lease. We normally respond within a few hours. All quotes
are subject to credit approval.
How complicated is the lease application procedure? Not at all. For private companies, fill out our one page application, which includes a bank reference, and trade references. Provide 2 years audited or reviewed financials. For public companies, only the application is required.
Who maintains the equipment if it fails? The lease requires
that you have the leased equipment maintained by the manufacturer or by
a third party maintenance organization approved by AGI. Self-maintenance
may also be approved in some cases.
Who pays for insurance? AGI can include coverage in the lease for a fee, but it is normally more economical to cover the equipment under the company's umbrella liability coverage.
What determines the lease rate? The primary determinant is the customer's credit rating. Current interest rates, the type of equipment leased and the term of the lease also affect the lease rate.
Can we add equipment to an existing lease? Equipment may be added at any time. You have the option of adding the equipment on a schedule that is co-terminus with the original schedule, or you may add the equipment with a different lease term. You may also combine new and old equipment in a new lease with a new term at any time.
Do you offer desktop refresh and asset tracking programs? Yes, at terms of 24, 30 or 36 months.
Will you do a purchase-leaseback of existing equipment we own? Yes.