Finance is the first step in the Life Cycle Management concept.
Since all businesses are unique, Captive Finance offers the flexibility to customize the best financing programmes with a variety of options to meet the customers’ specific needs.
Operating & Finance Leases
Captive Finance offers a financing concept where everything is combined in one agreement. A total solution can, for example, include:
• Hardware
• Software
• Support and service
• Consultant services
• Training
• Insurance
• Logistics
• Data cleaning
Another important element in the concept is that Captive Finance regards every piece of equipment as a single "agreement". This provides the lease with a flexibility to terminate, exchange, protect technology, purchase early or alter the financial conditions on an individual equipment level - at exactly the most efficient time in reference to performance and economic issues. The changes can be implemented without influencing the remaining equipment on the specified lease schedule.
Captive Finance offers different lease options, giving your customers the ability to upgrade their systems, renew their lease, extend an existing lease or return the equipment. Captive Finance can include “Fair Market Value” (FMV), “Pre-stated Purchase Options” and “Buyout Options” as a part of the lease.
Master Lease Agreements
The Master Lease agreement is offered as a possibility, not an obligation, of procuring IT equipment for up to a predefined credit limit during an agreed period.
By entering into a Master Lease agreement with Captive Finance, your customer achieves the advantage of being able to purchase additional equipment at any time within the economic limits of the agreement.
A Master Lease agreement can in practice employ the same purchasing routines that apply to cash purchases between you as a manufacturer and your customer. Invoices are collected up to a further specified financial limit, or up to an agreed period of time, for example three months, at which time an underlying technology contract is drawn up.
In practice this means that Captive Finance attends to the entire treatment of invoices for your customer who will only receive one all-inclusive invoice per payment period as agreed upon.
Lease Schedule Agreements
A Lease Schedule agreement is used once the order is placed and the exact financed amount can be calculated.
Sale-and-Leaseback Agreements
As part of the overall solution, Captive Finance can, according to the principle of sale-and-leaseback, offer to take over ownership of all or parts of your customer’s existing equipment and programme portfolio, including various other components from the IT environment.
