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SalesLogix Business Partner of the Year 2009
ACT! Business Partner of the year for 6 consecutive years
Leasing Software and Services From DMC Software Solutions
When you're starting or growing a business, cash is often in short supply. One way to spend less is to lease essential software such as ACT!, SalesLogix and Sage accounting software instead of buying it. Unlike renting, which is much too expensive to consider as a long-term alternative, leasing software, computers, fax machines or furniture offers a number of critical advantages:
Leasing improves your cash flow.
The main advantage of leasing is that it frees up cash. Equipment and software leases rarely require large down payments. Typically a leasing company will require only three months advance rental. By contrast, loans to finance the purchase of equipment typically require down payments of up to 25 percent or more.
Leases are easier to finance than purchases.
Before extending a capital equipment loan, banks will usually want to see two to three years of financial records, which most new companies do not have. They may also require personal gurantees from company Directors or may even require some form of security. Leasing companies, on the other hand, usually require only six months to a year of credit history before approving a furniture or office equipment lease.
Leasing makes it easier to keep pace with technology.
Leasing is especially attractive if your business relies upon cutting-edge technology such as the latest computers, software or other equipment. A series of short-term leases will cost you less than buying new equipment every year or two. Some software leases can even have annual support mainrtemance upgrades built into them -- eliminating that difficult decision of whether you can afford to upgrade or not.
Leasing allows you to afford more.
While you might not be able to afford to purchase that state of the art software employees are asking for, you may be able to lease it. Better software and equipment can make your employees more productive, create a more professional image and boost morale.
Leasing has balance sheet benefits.
You may be able to exclude some leased assets and related obligations from your balance sheet. Such moves might improve financial indicators such as your firm's debt-to-equity ratio or earnings-to-fixed-assets ratio. Bear in mind, however, that accounting rules do require your balance sheet to report assets leased under certain types of agreements. Lease payments are tax deductable and treated as a rental.
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