Lease or Finance

Affordable Phone System

Financing or leasing your new business phone equipment is often the smartest and least expensive way to
get new Avaya or Allworx telecom equipment for your office. Plus, Rimrock offers a number of other programs like
trade-ins and buy-backs to make your new phone system even more affordable.

Leasing gives you a lot of benefits, including freeing up your precious capital
for other uses. Here are some of the many benefits:

Minimize your cash outlay

In most cases you can finance 100% of your equipment with no down payment or other significant cash payment. It gives you flexible terms with low monthly payments. You will also be able to finance the cost of the equipment, plus installation, maintenance, taxes, shipping charges, and even software.

Manage Your Budget

Financing or leasing guarantees a low fixed monthly payment for the length of the financing period, making it easy to predict and manage your equipment expenses. It let’s you absorb incremental costs into your monthly operating budget instead of impacting your capital budget with an outright purchase.

Reduce Your Taxes

Leasing offers important tax advantages that actually reduce the cost of obtaining equipment. Depending on the type of lease, you may be able to write off the entire monthly payment as an operating expense or capitalize the outlay.

Financing preserves cash, protects credit lines, and is eligible for tax
benefits. It also helps you budget monthly expenses.

types of financing structures

Customers typically choose between $1 Buyout, Fair Market Value, or rental agreement. Many customers
choose a rental program to keep their technology current, and for operating expense benefits.

$1 Buyout
 

your Benefits

Account on your balance sheet and depreciated

 

end-of-term

You own after final payment

 

$1 Fair Market Value
 

your Benefits

Lowest monthly payment

 

end-of-term

You have the flexibility to
purchase, upgrade, rent, or return

 

Rental Program
 

your Benefits

Generally considered an
operating expense

 

end-of-term

You may return, continue
renting, or upgrade

Technology financing FAQs

Why should my company finance new technology?

Financing preserves cash, protects credit lines, and is eligible for tax benefits. It also helps you budget monthly expenses.

Should we buy and own our new technology?

There are some cases where outright buying equipment makes sense, but at the rate technology is evolving you may end up owning an obsolete system. Ask yourself two questions to determine whether financing is right for you.

How else can you use your cash or credit lines?
Many companies use cash to hire new employees, invest in marketing and future company growth, or for unforeseen emergencies.
Are you prepared to make another capital investment to upgrade this system in 3-5 years?
Financing puts you on a monthly budget, and by the time the system is outdated, you will be able to upgrade an already budgeted item and keep a comparable monthly payment.

Is financing only for large enterprise companies?

According to the Equipment Leasing & Finance Association, 7 in 10 businesses in the United States use some form of financing to acquire equipment (excludes credit cards). Financing provides benefits to businesses large and small.

How much money will I have to put down?

We provide financing with no money down on most transactions. Bank loans or credit lines will often require money down to initiate the transaction.

What are the different types of financing structures?

$1 Buyout
Your Benefits: Account on your balance sheet and depreciated
End of Term: You won after final payment

Fair Market Value
Your Benefits: Lowest monthly payment
End of Term: You have the flexibility to purchase, upgrade, rent, or return

Rental Program
Your Benefits: Generally considered an operating expense
End of Term: You may return, continue renting, or upgrade

What are the differences between a Capital and an Operating purchase?

Typically, a $1 buyout lease is a capital purchase. It is recorded on your books as an asset, and you can benefit from the Section 179 tax break. However, if you are looking for something that you can treat as an operating expense, renting the equipment through a finance rental agreement could be the best option. Check with your accountant to see which benefits suit you best.

Can we add equipment to our agreement?

Yes, adding equipment to your agreement during the term is simple. Most times, add-ons are coterminus, making the new payment end at the same time as the original lease.

Isn’t the lowest rate the best option?

Not always. Many banks and financial institutions have hidden fees in their finance agreements. Fees can include automatic renewal payments (some up to a year), fees to process taxes, interim rent, and high Fair Market Value residuals. Before making a decision, read through the proposed finance agreement and be sure you will not be surprised by hidden fees.

Let’s talk about the best option for your business.
Communications & Data Group
Largest private independent small-ticket equipment finance company in the United States
with over $1.6 billion in assets. Founded in 1992; headquartered in Cedar Rapids, Iowa
Principle-based Customers For Life® culture

  Team-based structure with a “customer first” attitude

  Truth in Leasing Statement from our CEO puts ethical treatment policies in writing

Two-ring response and no voicemail during normal business hours

track record of success and financial stability

Virtually all assests are from organic growth

Consistent credit philosophy regardless of economic  cycles

Profitable growth every year since inception

Thirteen successful term securitizations since 1995  for $3.7B

14Southern California
14Utah
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