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Asset Finance in the Communications Market |
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Introduction Vendor Finance Operating Lease HP, Lease Rental and Cash Questions or Enquiries Asset Finance Services Public Sector Finance News |
Finance can be viewed as
Vendor when the equipment (asset) supplier offers a finance option as an
addition to simple cash purchase. As with all forms of finance it has both
its advantages and disadvantages. Most often this type of finance is well
tailored to the life cycle of the equipment be that a fork lift truck or
an IT/Comms installation. Occasionally this tailoring can clash with the financial requirements of a particular type of customer bringing additional costs to the vendor option. Quantifying the advantages of the tailoring is less straightforward than measuring the after tax cost ( use the HP, Lease, Cash Calculator). One approach is to examine the cost of the vendor and non vendor finance if things change. Requirements may well change during an asset's life requiring an upgrade or replacement. The cost of early settlement and re-financing should be better reflected in the finance option tailored to the asset’s life cycle. The suitability of vendor finance to your own specific circumstances can be assessed using the module |
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