Financing Refurbished IT-Equipment

Changing or setting up your network infrastructure can be a big investment. There are a number of ways an IT platform can be acquired but choosing the right way of financing this is key.

Investing in networking equipment can be very costly. This often results in having to choose between upgrading infrastructure and investing in sales/marketing. But what if you do not have to choose and you can do both?

In a world of rapidly changing technology the obvious approach, using capital, to acquire IT-equipment is not always the best approach. But have you ever actually considered the alternative? Financing.

There are different flavors of financing available: getting a loan or leasing.

Loan

Getting a loan seems to be the most fast and obvious approach, but it is not always that simple. Banks usually don’t know what you are talking about when you start mentioning MX80, QFX5100 or even just Juniper or Arista. Therefor banks are sometimes reluctant to finance IT equipment.

Leasing your equipment

A better solution might be to lease the equipment. In this case, the equipment is not purchased, but is rented from a leasing company. You will pay a monthly fee to have and use the equipment at your site instead of doing one big investment all at once. When leasing the equipment you will have fixed costs for your capital goods every month. Also, there might be some potential fiscal benefits.

By the end of the leasing contract you usually have three options. Returning the equipment, renew the leasing contract or buy the equipment.  

In a leasing structure you would not have paid the full buying price by the end of your contract, since the residual value is taken into account. This gives you the opportunity to decide to easily upgrade or move to new technology at the end of, or even during, your contract

A short example

A short fictional example to make it a bit more clear.

Let’s say you need to buy a fully configured Juniper MX960 which is offered to you at € 40.000. In this example we use a leasing contract over a period of 36 months

Calculating the monthly payments: 23,54/1.000 * € 40.000 = € 941,60  per Month

Total Cost after 36 monthly payments = 36 * € 941,60 = € 33.898

After these 36 monthly payments, you have the option to buy the MX960 for the residual value or to return it and upgrade to newer equipment. This makes leasing a perfect option to facilitate growth as you go.   

We can provide

Interested in financing your networking gear? Don’t hesitate to contact us and we will gladly inform you about the possibilities.

info@emxcore.com or +31 20 752 67 79

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