To retain a competitive edge over competitors, businesses are forced to continually invest in technology. In addition to this businesses are faced with an increasing rate of technology obsolescence and the challenge to get rid of unutilized equipment.
Purchased technology is expensive and investing in technology has serious financial implications. Capital is not only a valuable but also scarce resource and should be preserved and used in revenue generating activities in a business.
Rentals provides a clever alternative for financing equipment. This option allows a company to preserve its cash resources which could be put to better use in other revenue generating areas of the business.
Structured as an operating rental will allow your company to treat the expense as operating costs which might have certain tax and other benefits for the company.
Axial is vendor neutral which allows you to negotiate the best cash deal with a variety of vendors and get it financed on one single contract. The flexibility of the various Rental payment plans allows you the ability to upgrade, exchange or add on new equipment to your existing rental agreement during the life of the contract, and also to finance assets inclusive of hardware, software and other intangible costs under one agreement. It also provides you with the option to return, upgrade or continue to rent the equipment at the end of the term.
By shortening or extending the rental term enables you to rent equipment over periods equal to the useful life of the asset and not the depreciable period prescribed by law. Financing technology assets on Rental provides you with a hedge against obsolescence because ownership and the risk associated with the asset vests in Axial.
Rental finance also allow you the ability to structure payments to match your company's cash flow. Payments can be stepped up (ideal for a growing business) or stepped down (ideal for businesses that expect to have big idle cash resources in the foreseeable future) or structured to cater for seasonality and expected cash flows.