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"AMAX helped us every step of the way to design and deploy the newest, fastest, and most cost-effective server technology available today. Their flexible manufacturing process let us offload many aspects of the server and cabinet designs so we could concentrate on developing software to take advantage of their massive CPU power and network bandwidth of our new cluster supercomputer."
Technology Financing Overview
As technology advances in today's fast-paced environment, companies need state-of-the-art equipment to maintain a competitive edge while reducing operating costs with maximum returns. To help our customers stay competitive, AMAX offers a full array of dynamic financing programs that are flexible and tailored to specific needs, giving companies the ability to acquire the equipment they need now, while easily adding or upgrading to the technology they'll need in the future.

Advantages:
  • 100% Financing. Financing bundles 100% of the equipment cost into one lease with room to add soft costs including training, installation and maintenance.

  • No Down Payment. A security deposit equal to two months rental payments is usually all that is required.

  • Possible tax savings*. If a company is in the 34% tax bracket and has a lease with a monthly payment of $500, the payment may be reduced to $330 - that's a monthly savings of $170 ($500 x 34%) or $2040 annually. *Consult your tax advisor.

  • Flexibility. Customize a lease to fit your particular situation with skip payments or seasonal payments.

  • Increase profits immediately. With leasing, you only need to cover the monthly payment for the new equipment to be profitable from the first month. Example of the cost effectiveness of a lease: A monthly payment of $500 divided by 30 days = a daily cost of only $16.67! Divide $16.67 by 8 work-day hours to get an hourly cost of $2.36!

  • Preserve bank credit lines. Leasing doesn't affect your bank borrowing limits. You still have 100% of your credit available.

  • Avoid obsolescence. Upgrade Leases are easy with most modern equipment always available.

  • Conserve working capital. Cash isn't tied up in overhead; it's free for income producing investments.

  • Potential accounting benefits. Monthly payments may be deductible as operating expenses rather than accounting for the equipment as an asset.


Compare:
Payment Type & Features Cash Loan Lease
Cash Flow Buying has an immediate impact on cash flow by diminishing cash reserves. Down payment required and loan payments are generally higher than lease payments. No down payment required. Leasing usually has less impact on cash flow due to lower payments.
Line of Credit Liquid assets are depleted and may affect credit. Taps the line of credit. Does not affect line of credit.
Equipment Risk The owner bears all the risk of equipment devaluation. Obsolescence must be tracked by the owner. The owner bears all the risk of equipment devaluation. Obsolescence must be tracked by the owner. In many leases, the burden of taxes and insurance is managed by the lessor.
Asset Liability Owners must manage asset liability on their books. Financial accounting requires owned equipment to appear as an asset with a corresponding liability on the balance sheet. Owners must manage asset liability on their books and are required to have equipment appear as an asset with a corresponding liability on the balance sheet. Operating lease assets are expensed. Such assets do not appear on the balance sheet, which can improve financial ratios.
Rate Risk Cash should be used for income producing investments since you pay with today's dollars at today's value. Banks prefer to loan money on a floating or variable rate tied to prime. Rate risk is on the customer, not the bank. Payments are fixed for the lease term. Pay with next year's inflated dollars - take advantage of inflation.
Soft Costs Soft costs such as installation, training can erode cash reserves. Banks rarely finance soft costs. Cash is usually needed. Leasing may cover all soft costs including maintenance and software.
Upgrade Owners must manage disposal/selling of outdated equipment. This can slow down the upgrade process. Owners must manage the disposal/selling of outdated equipment. This can slow down the upgrade process. Leasing allows for easy upgrades or additions and keeps the same payment by simply extending the lease term.
For more information on AMAX Financing Programs, please contact AMAX now.
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