graphic savings group blog

IT Equipment Leasing Now A $40 Billion Industry

A study recently released by the Equipment Leasing and FInancing Association of America with the Alta Group estimates the IT equiment financing market has grown to $40 billion per year. That's billion with a 'b'. You can read the press release about the study here.

The equipment leasing industry growth rate has exploded in recent years as companies look for more accurate cost forecasting and need greater flexibility. According to the Equipment Leasing and Financing Association of America's study, the IT equipment leasing industry has grown by 67 percent in just the past three years. In fact, IT equipment leases are one of the fastest growing sectors of the equipment leasing market. Over the past four years, the ELFA estimates the IT equipment financing counts for 22 percent of all equipment leases compared with 12 percent in 2002.

If you're considering an IT equipment lease or copier lease, please consider talking to the Graphic Savings Group.

What's more, IT equipment financing as a percent of total U.S. equipment financing activity nearly doubled from approximately 12 percent in 2002 to 22 percent last year, according to the new ELFA-Alta Group study.

What is an Equipment Sale Leaseback?

If you're asking what an equipment sale leaseback is, you're not alone. A lot of people have never considered an equipment sale leaseback and are missing out on a flexible source of capital that could help when resources are stretched thin.

An equipment sale leaseback is when a company sells an asset, such as business equipment it is currently leasing, for cash. That asset is then leased back to the company by a leasing company under a new contract. The leased equipment never leaves the premises of the company, in fact, it usually remains under the same service. As an added benefit, the seller retains ownership over the asset at the end of the lease term.

An equipment sale leaseback helps a company improve its working capital situation and make sure that it is using assets efficiently. The monthly payments can usually be written off for tax purposes and are independent of bank credit lines. Office equipment, Digital copiers, Warehouse equipment, and even company vehicles can all be part of a sale leaseback program.

If you're considering an equipment sale leaseback, please consider talking to the Graphic Savings Group.

Copier Lease Calculator

If you're looking for a ballpark estimate of what your copier lease might cost, a great place to start is a lease calculator.

The link above takes you to a calculator that will let you figure out your approximate monthly payments based on interest rate and the amounts involved. It lets you factor how many payments you want to make, what the residual amount will be, and the interest rate on your equipment lease. More importantly this lets you know the class of copier you can afford to lease.

You should always have an idea of the costs of a given copier lease because then you can budget accordingly and assess the numbers offered to you by an equipment leasing broker. It's important to be able to assess your expected revenue according to print runs in relation to your costs. 

If you're considering a copier lease, please consider the Graphic Savings Group.

The link above takes you to a calculator that will let you figure out your approximate monthly payments based on interest rate and the amounts involved. It lets you factor how many payments you want to make, what the residual amount will be, and the interest rate on your equipment lease. More importantly this lets you know the class of copier you can afford to lease.

You should always have an idea of the costs of a given copier lease because then you can budget accordingly and assess the numbers offered to you by an equipment leasing broker. It's important to be able to assess your expected revenue according to print runs in relation to your costs. 

If you're considering a copier lease, please consider the Graphic Savings Group.

Graphic Savings Group Starts Master Lease Initiative

As corporate merges and acquisitions continue to drive growth in the business world, companies are now beginning to look at how consolidation within their own organization can improve cash flow and ease the burden of Sarbanes Oxley reporting. Graphic Savings Group is introducing the Master Lease Initiative to help companies consolidate and strengthen purchasing power across vendors, locations, and asset types.

"We’ve always encouraged companies to control the velocity of money and no financial tool may be more powerful than the Master Lease for managing procurement and equipmentlease terms,” said Andrew A. Bender, CEO of Graphic Savings Group.

Under the GSG Master Lease Initiative, companies will be able to tailor a lease agreement that enables increased oversight through a centralized, managed contract. By streamlining the lease documents, corporations can eliminate the expense and time lag inherent in the standard review process. The Master Lease establishes the base terms and schedule for a corporation’s leasing needs, creating a base line upon which all equipment leases are derived from. To celebrate the launch of the Master Lease Initiative, Graphic Savings Group is offering a Tivo® Series II to vendors that decide to enroll in the program and help their customers take control of their equipment leasing.

The Master Lease Initiative is based on a concept of flexibility. Companies in the MLI have the opportunity to establish an equipment procurement schedule, which can include quarterly rollups or delivery to multiple locations. The equipment terms become elastic, as companies can designate the length of a given lease according to their needs during a revenue cycle.

“We know that companies are successful when they are capable of rapid innovation. This makes capital available for new initiatives and directions immediately,” said Bender.

About Us

Graphic Savings Group is a cash flow management consulting company. GSG specializes in leasing high volume copiers, printers, and other IT equipment. Whether you are a Fortune 500 company, municipality, or a start-up venture, Graphic Savings Group helps clients control the velocity of money. For more information visit Graphic Savings Group online at http://www.graphicsavings.com/ or call 203.336.4034.

Cash Flow in Copier Leasing

You have to consider cash flow when you are considering a copier lease. An equipment lease is often the best way to mitigate a tight cash flow in the startup phase of your business. There might just be even more leeway than you think in a copier lease.

Standard Lease

A standard lease typically requires the first and last payment up front, and then equal payments for the term of the lease. The lease term is likely anywhere from 2 to 5 years.

Step Up Lease

A step up lease is sometimes structured around higher priced equipment, such as digital copiers or printers. Payments begin at a very low level and then step up over the course of the lease to a higher, regular payment. The step up lease is designed to help startups receive the latest equipment without adversely impacting cash flow.

Deferred Payment Lease

A deferred payment lease usually offers the lessee a period of time, typically 90 days, before the second payment is due. Therefore, a copier lease might featured a deferred payment to allow a startup business to generate revenue.

There are a variety of options at the end of each of these leases. If you're considering an equipment lease, consider the Graphic Savings Group.

Standard Lease

A standard lease typically requires the first and last payment up front, and then equal payments for the term of the lease. The lease term is likely anywhere from 2 to 5 years.

Step Up Lease

A step up lease is sometimes structured around higher priced equipment, such as digital copiers or printers. Payments begin at a very low level and then step up over the course of the lease to a higher, regular payment. The step up lease is designed to help startups receive the latest equipment without adversely impacting cash flow.

Deferred Payment Lease

A deferred payment lease usually offers the lessee a period of time, typically 90 days, before the second payment is due. Therefore, a copier lease might featured a deferred payment to allow a startup business to generate revenue.

There are a variety of options at the end of each of these leases. If you're considering an equipment lease, consider the Graphic Savings Group.

Digital Copier Leasing: The Basics

Before you sign the dotted line, ask for a break down on the numbers of your copier and copier lease. You should know exactly what you are paying and at what rate. Often, a manufacturer might knock down the price of a digital press because the interest you'll be paying on the attached lease will bring in significantly more money. Always ask for the following when negotiating a lease.

What is the Interest Rate?

How much are your paying for your copier and how much are you paying in interest? Ultimately, a lease only makes sense if the costs are appropriate for the equipment you are getting.

What's the Buyout Option?

You should know exactly what happens to your machine at the end of the lease. Many leases will return the equipment to a dealer or manufacturer by default unless you know to ask about buyout options. Decide if you'll want the equipment at the end of your lease terms and what you would be willing to pay for it. Then, negotiate accordingly.

Length and Exact Terms of the Lease

Exactly how long is your lease and what is your payment schedule. Get a breakdown in writing, and find what the penalties are for defaulting or missing a payment to prepare for the worst case scenario.

Consider alternatives

A dealer or manufacturer may not be able to offer you the best rate, in fact, it's likely in their interest to offer you a higher rate.  That's why you should always get a competitve quote. You might be suprised at how much more you would have paid for equipment and how much you can save.

When looking at leasing a copier, consider Graphic Savings Group as one of your options.