IBM Global Financing
A Flexible Playing Field
The biggest change sweeping IT today
isn’t the internet, or operating systems,
or wireless. It’s about how business pay
for them. Whether you decide to lease
or finance your technology acquisition,
IBM Global Financing can provide a
solution that is tailored to your individual
requirements. Our flexible range of
options include:
Risk Residual Lease
This is also known as a 'lease to return'
and suits organisations that anticipate
rapid growth or frequent changes in
their technology demands. This type of
facility avoids the need for you to own
the assets so that you need not hold
obsolete equipment after the lease
period.
Payments are based upon our
estimated residual position at the end of
lease. You only pay for the use of the
equipment. In effect this provides a
built-in guaranteed buy-back, protecting
you against the risk of future book loss
from over-valued IT assets. IBM Global
Financing owns the equipment and
therefore the risk.
At the end of the lease you can decide
whether the equipment is still meeting
the needs of the business and choose
from the following options:
• Return the equipment without further
payments
• Upgrade by returning and replacing the
equipment
• Extend the lease for 12 or 24 months
• Rent the equipment on a month to month
basis
• Offer to purchase the equipment at fair
market value
A risk residual lease through IBM Global
Financing may qualify as an operating
lease under approved accounting
standards, giving you added flexibility in
your balance sheet management. For
leases that qualify, future rentals are not
included in the balance sheet as a
liability and the leased equipment is not
included as an asset. This may increase
your borrowing capacity and improve
key financial ratios such as debt/equity
and return on assets. Lease payments
are tax deductible and can be tailored
to suit your specific budgetary or cash
flow requirements.
Fixed Residual Lease
Our fixed residual lease is designed for
organisations that want a known
residual position at the end of the lease.
In general, this type of lease benefits
organisations that want to retain the
equipment at end of lease, with a
known residual position. For commercial
companies, fixed residual leases
incorporate an end-of-lease residual
position consistent with Tax Office
guidelines.
Lease payments are tax deductible and
rentals can be tailored to suit your
specific budgetary or cash flow
requirements.
Finance
IBM Global Financing's competitive
rates make it attractive to finance other
components of a technology acqui-
sition, such as maintenance, education,
software and services, over the full life
of your facility. Finance is available for
between two and five years and gener-
ally no deposit or down payment is
required.
Sale and Leaseback
Under this arrangement equipment you
have already purchased may be
converted to cash. This means IBM
Global Financing purchases your
installed equipment at written down or
fair market value and leases it back to
you, allowing you to release working
capital for your business.
Leasing and Finance Options through
IBM Global Financing
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Fleetlease
If you have or plan to acquire a large
network of PCs or other IT equipment
and you want a smarter way of
managing your 'fleet', then Fleetlease is
the ideal solution. Fleetlease is a
market-leading offering, which
combines flexible financing with asset
and technology management to help
you reduce the total cost of ownership.
The core component of Fleetlease is a
three or four year risk residual lease
with the option to include Flexpoints at
pre-agreed points in the lease.
Flexpoints enable you to assess at
regular intervals whether the equipment
still meets business demands and to
replace or update it without penalty.
As with other IBM Global Financing
products, insurance is included for
damage repair or lease payout for
leased equipment while it is on site and
secured. Off-site insurance is available
for portable assets. In an environment
where prohibitive insurance excesses
make claims for PCs uneconomic, this
benefit has considerable value.
Depending on your specific financial
arrangements, this type of lease may
qualify as an operating lease under
approved accounting standards. Lease
payments under Fleetlease may also be
tax deductible.
Fleetlease Plus
Fleetlease Plus is designed primarily for
large corporations and government
departments that want to maintain
direct control over their IT assets while
realising the significant total cost of
ownership savings through leasing.
The advantage of Fleetlease Plus is that
you can include selected services from
specialist organisations, such as IBM
Product Support and Services or your
chosen supplier, to replace less efficient
in-house services. This is termed out-
tasking and is a simple way of rolling
much of your IT expenditure into a
single monthly payment.
The result is consistent cash flow
management and asset management to
cope with a complex networked client-
server environment.
IBM Global Financing is one of the
largest traders of second hand equip-
ment in Australia and New Zealand. We
offer used equipment for sale and
lease, and ensure that the equipment is
fully refurbished prior to sale.
Think IBM Global Financing
With the discipline of a bank and the
knowledge of an IT Vendor, IBM Global
Financing understands the needs of
technology-related business better than
any other financial resource. To find out
how leasing can help your business stay
in front, please contact us.
For more information
Phone
Ask for IBM Global Financing info:
Australia 132 426
New Zealand 0800 801 800
Visit our web site
ibm.com/financing/au
ibm.com/financing/nz
© Copyright IBM Global Financing Australia
Limited 2001
ABN 27 002 955 571
and IBM Global Financing New Zealand Limited.
All rights reserved.
IBM and IBM product names are trademarks of
International Business Machines Corporation.
Designed and Produced by the IBM Grafxlab.
Printed in Australia.
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