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Equity Upgrade Lease

 
Lets your clients use the equity in their IT equipment to finance their next upgrade

An Equity Upgrade Lease from IBM Global Financing lets your clients use the equity in their existing purchased equipment to finance upgrades without changing the accounting treatment of their assets. It keeps their payments low, and requires no current period book write-off. This is an outstanding opportunity to help them convert their IT equipment strategy from ownership to leasing, and offers highly competitive rates while eliminating the risks of ownership such as equipment obsolescence and disposal.

With an Equity Upgrade Lease, IBM Global Financing writes a Fair Market Value lease on the upgrade, crediting your client for the equity they have already built up in their purchased base. As part of the agreement, the client signs a document renouncing ownership in the leased assets at the end of the lease term, when title for the equipment will be transferred to IBM Global Financing. Even the disposal of your client's assets will be managed by IBM Global Financing in accordance with EPA guidelines, and United States federal, state and local laws.

Because the client retains title to the equipment for the duration of the lease period, an Equity Upgrade Lease doesn't require them to change their accounting treatment of the assets, so they won't suffer a book loss on the investments they've already made.

Highlights:
  • Lets clients upgrade their systems by applying the equity they already have in their systems to upgrades
  • The client receives credit for the equity they already have in their installed equipment in the form of reduced payments on any upgrades
  • Minimizes the financial impact of upgrading, and eliminates equipment obsolescence and disposal issues
  • Provides benefits of leasing without changing the accounting treatment of assets
  • Offers highly competitive rates for the financed portion
  • The client avoids any current period book write-off
  • Valid for companies with at least 100 employees

Additional Information:
  • Available in the United States and Canada
  • Other restrictions may apply. Contact your IBM Global Financing representative for additional information and specific details.


 

For More Information:

Equity Upgrade Lease information sheet Equity Upgrade Lease information sheet (314Kb)
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IBM Global Financing offerings are provided through IBM Credit LLC in the United States and other IBM subsidiaries and divisions worldwide to qualified commercial and government clients. Rates are based on a client's credit rating, financing terms, offering type, equipment type and options, and may vary by country. Other restrictions may apply. Rates and offerings are subject to change, extension or withdrawal without notice.
 

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