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Fourth Quarter Strategies and Words of Thanks

It’s the fourth quarter with less than two minutes of play time left on the clock. What are the strategic moves your organization can make that will better position you moving into 2016?

This is the time to take a hard look at your organization’s performance over the last 12 months and implement actions today that will have a positive effect in the coming year. When looking at financial and operational performance, it’s important to keep in mind that how businesses pay for capital equipment can also have an impact on a company’s overall financial health. Leasing should be part of your organization’s end-of-year discussions.

Q4 is the perfect time to implement Sale Leasebacks to recapture sunk revenue and employ an asset refresh program. This assists your organization’s overall cash position while implementing a robust asset management program that facilitates your organization for continued, rapid evolution in business needs and security demands from your technology and equipment in 2016, as well as the logical process for assets that have a built-in stated technology life.

Lease Check Up: Procurement and Do’s and Don’ts in Documentation

  • Healthy procurement practice: lease today and pay in 2016. If you do not lease or are in the process of considering it, leasing can be a strategic advantage, both financially as well as from a procurement perspective. With a lease option, you still have time to implement end of the year projects today—and defer payments until 2016.
  • Healthy lease review practice. The end of the year is also a great time to review current or proposed lease contracts. If you are in a long term business relationship with a lessor, it is a best practice to review documentation now for terms and conditions which might negatively affect your Total Cost of Ownership of your leased technology and equipment.  Here are a few of those terms:

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  • Defined interim rent
  • No further charges for any software or soft costs at end of the term
  • Mutually agreeable FMV
  • 60 day notice period
  • Multiple return locations around the country
  • Flexibility – month to month rent for equipment not returned
  • Competitive lease rate factors
  • No additional fees

 

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  • Extended pro-rata rent and interim rent
  • Fair Market Value charged for software
  • FMV determined by lessor
  • Difficult notice provisions – 180 days/150days/notice windows
  • One return location for entire U.S.
  • Late return = Notice cancellation = 6 or 12 month renewal
  • Below market lease rates, unnecessary deposits, automatic rate increasesRestocking, documentation, commitment, UCC filing, transaction and other fees
  • Restocking, documentation, commitment, UCC filing, transaction and other fees

 

Introducing: Multi-Year Service Agreement Lease-Financing 

CoreTech is pleased to announce our capabilities now extend to allow financing for multi-year software and maintenance contracts. This lets your organization take advantage of large discounts and lower overall costs while avoiding large upfront cash outlays.  CoreTech pays your selected partners upfront, on your behalf, and you make monthly payments to CoreTech, similar to a typical equipment lease, thus eliminating cash pressures while securing discounted pricing.

CoreTech has developed this methodology to increase efficiency and, more importantly, reduce your organization’s costs.  Our solution will allow you to clean-up the contract disorder and supply a platform where you can negotiate with your IT providers from a position of influence. Use purchasing power as a means to lower overall costs. In other words, pay upfront and be rewarded with discounts.

Simplifying IT maintenance costs makes for better efficiency and maximizes your available budget. Contact us at info@coretechleasing.com to learn more.

A few words of thanks

The season of thanks is here. Everyone here at CoreTech is thankful for the excellent people we work with on a daily basis, our clients and our vendors, co-workers, event coordinators, association administrators, and the fine people we continue to meet and deal with on a daily basis.   It’s a pleasure to do business with people who continually strive to work towards what is best.

Here’s a small snippet from one of our favorite writers, Harvey MacKay, on the spirit of giving as a business leader:

“Never pass up an opportunity to share what you have. Dedicated leaders understand they have tremendous power to help by setting a solid example and demonstrating the highest standards.”

You can read the full article “The Most Important Things in Life,” here. We hope you enjoy.

Have a great Thanksgiving.

How to Alleviate Security Pressures with Financial Strategies

Security pressures are affecting businesses across all sectors, from the recent JPMorgan Chase breach to Home Depot, to—according to a USA Today report this week–  44% of all small businesses.  Nobody knows the rising pressures of IT more than the decision-makers at the heads of business information and technology departments.

The inaugural 2014 Security Pressures Report from Trustwave surveyed more than 800 of these IT professionals to reveal the security threats they are most concerned about.  One of the main areas of contradictory forces faced by IT professionals is both the pressure to “do something,” but without the resources–as evidenced by this statistic from the report:

  • 65% of IT pros are pressured to use security products with all of the latest features, despite 1 out of 3 not having the resources to do so effectively.

Here is the question on the minds of decision makers: How are we going to pay for the security technology that’s necessary today if it’s not in our budget “today”?

Leasing or financing provides the opportunity for an IT department to replace/upgrade equipment on the fly as upgrades are released, while at the same time working within a budgeted monthly payment.  The decision cycle can also be shortened since the request for another large capital expenditure can be circumvented.

We addressed these pressures and financial solutions in a recent article in Law Journal Newsletters, but the strategies can be consistently applied to all businesses.  To read the full article as well as a link to the Trustwave report and additional IT security statistics, click here.

Law Firm Security Pressures Alleviated with Financial Strategies

Law Firm Security Pressures Alleviated with Financial Strategies By Scott McFetters

From the October issue of Law Journal Newsletters Accounting & Financial Planning for Law Firms.

 

  • 65% of IT pros are pressured to use security products with all of the latest features, despite 1 out of 3 not having the resources to do so effectively.
  • More budget, more security skills/expertise and more time to focus on security are the top three items on wish lists for IT pros in 2014.

                                                                         2014 Security Pressures Report commissioned by Trustwave

The law firm security landscape

We know the consumer-industry stories of hackers infiltrating Target and, more recently, Home Depot:

“Here’s the thing about breaking into a multi-billion-dollar company and stealing the credit card information of millions of customers: It’s just not that hard.”  From Mashable.com

Law firms are now at the center of the storm because they store some of their clients’ most sensitive business information and are viewed by criminal elements as a less defended path to that data.  Firms must take care to understand and respond to evolving security trends and response strategies.

A growing number of clients are demanding that their law firms take more steps to guard against online intrusions that could compromise sensitive information as global concerns about hacker threats mount.

 

Download article here