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Rental |
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Purchase |
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Operating expense - payments can be spread over the useful life of the equipment |
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Capital expenditure required - often needs to be budgeted |
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Faster approval - often by line management |
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Slower approval - often needs Board approval |
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Pay as you use - as equipment earns its keep |
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Pay upfront - before any benefits are gained |
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Valuable capital can be freed for profit producing opportunities |
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Valuable capital consumed making it unavailable for better ROI opportunities |
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Risk sits with the financier |
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All risk sits with the owner |
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Faster ROI - spreading and expensing payments means cost benefits can be aligned with a smooth cash flow |
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Slower ROI - with a cash purchase it takes much longer before the cost benefits exceed cash outflow |
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Upgrade as you need to - you have the flexibility, during and at the end of the agreement, to replace unsuitable equipment, without having the disposal risks and costs |
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Depreciation and lack of capital can adversely affect the ability to upgrade - if the book value exceeds the fair market value, you incur a loss on disposal |
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Cash flow friendly - fixed affordable payments that smooth and simplify cash flow management |
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Large cash out flow - cash is the life blood of any business and needs to be conserved to ensure existing financial obligations can be met |
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Maintain momentum - Dexion Financial Services can help you create a facility to acquire new technology solutions, without having to find the capital |
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Likely to impede progress - materials handling spending may have to compete with more business critical demands for capital |
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Dexion Financial Services is a specialist equipment financier - customising the right "package" and generally can finance the entire solution, not just the storage equipment components |
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May not be able to fund installation and related services - lack of capital or inability of traditional funders to finance intangibles, may restrict the ability to finance the "total solution" |
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