In today’s business world, the decision between purchasing and leasing technology has become a key topic for many organizations. Adopting new technological solutions is essential to staying competitive, but what is the best strategy?

The importance of technology in business

All companies require infrastructure and computing equipment to operate properly, as the services these provide to the user community within each company can either elevate or limit their level of productivity. Without the appropriate infrastructure, service delivery could be compromised.

Let’s focus on SMEs. These businesses undoubtedly wish to have modern technology to provide their employees with the necessary tools to work efficiently, thereby increasing their productivity. However, acquiring infrastructure or computing equipment can be impacted by cash flow issues, decapitalization, or the decision to invest in production areas rather than in IT. For these businesses, the topic of technology leasing can be highly beneficial.

But what about large enterprises? These companies have much more control over their cash flow and capital and often choose to use leasing because it provides tax advantages.

icorp’s options

At icorp, we offer simple credit and the following leasing schemes:

• FMV (Fair Market Value): This scheme involves affordable rents where, from the start of the agreement, it is assumed that the equipment will be returned at the end of the leasing period. Why is it not advisable to purchase the equipment in this scheme at the end of the leasing period? Because the residual value is approximately between 8% and 37% of the total transaction.
• FPO (Full Pay Out): This scheme involves rents that are slightly higher than those under FMV, but there is the certainty that at the end of the leasing period, the residual payment is between 0.5% and 1.5% of the total value of the transaction. This scheme is ideal for companies intending to acquire the equipment at the end of the lease.
• Simple credit: This scheme allows for the acquisition of a solution (infrastructure, computing equipment, etc.) through an installment sale.

What are the conditions of this service?

The project must consider 70% hardware and a maximum of 30% software and services.

Advantages of leasing

First, it’s important to note that both the FMV and FPO schemes come with the financial and tax benefits typical of leasing.

From a financial perspective:

• Minimal impact on financial statements.
• Operating expense (flexibility in budgeting).
• No initial payment.

Operational benefits:

• Technological renewal.
• Improved service delivery to users.
• Reduced impact on budgets.

From a tax perspective:

• Does not affect fixed assets.
• Everything is categorized as an expense.
• 100% tax deductible.

Advantages of simple credit

From a financial perspective:

• Budget scheduling.
• Fixed interest rate.
• No initial payment.

Operational benefits:

• The client is the owner from both an accounting and tax perspective.
• Payment can be made in different terms.

From a tax perspective:

• Acquisition of fixed assets.
• Creditable VAT.
• Tax-deductible interest.

Options at the end of the leasing period:

In an FPO scheme, the equipment can be acquired by paying a minimal residual percentage. However, in an FMV scheme, it is best to return the equipment and enter into a new leasing agreement with the most modern technology available at that time. In both schemes, the leasing term can be renewed.

What are icorp’s strategic alliances?

Currently, we work with CHG Meridian and HPE Financial Services, but through our distributors, we have access to various financial institutions in addition to the two mentioned.

What do I need to know to start a lease or simple credit agreement?

Leasing and/or simple credit with HPEFS:

• The company must have been established for at least 3 years.
• The minimum transaction amount is $100,000 MXN.
• The financing entity invoices directly to the end user.
• Payments must be made in the currency stipulated in the contract.
• There is no exchange rate protection or currency hedging.
• Terms range from 18 to 60 months.
• The company must have healthy finances to qualify for the lease.
• Must be a Mexican company.
• Must be a legal entity.

How complicated is the leasing or simple credit process with HPEFS?

Once the solution you want to acquire is defined, the leasing process is very simple and fast. It’s important to keep in mind that complete documentation must be submitted, and we depend on the manufacturers’ delivery times.

The financial analysis takes no more than 24 hours. Credit analysis, once complete documentation is submitted, takes a maximum of 10 days. Contract generation takes no more than 5 days (though this depends on how long the client takes to gather the necessary signatures). The generation of VAL takes a maximum of 5 days (this document enables us to place the corresponding order). Once the equipment is delivered to the end user, the financing entity will start invoicing monthly for the agreed amount.

If you’d like to explore more about our technology leasing services, we invite you to visit our IT products page by clicking here!

This article has been translated using AI and may include errors.