Growing businesses use tech leasing as a cost-effective way to protect their cash flow while getting full use out of warrantied hardware. This avoids the upfront cost of buying outright, yet it still gives them the cutting-edge technology they need to perform. Ultimately, it’s a great way of boosting that profit margin!
Now, most leases are set up for devices to be returned at the end of the lease period. This is great for those who always want the latest equipment. The reality, however, is that growing businesses often become reliant on their machines. Giving back or swapping devices in a suitable condition can create disruption and work – especially for those who don’t have in-house IT teams to maintain the health of their devices and/or smooth over the transition to new tech.
Businesses then have the option to buy their devices from the leasing provider – often at ‘fair market value’. However, this is rarely ‘fair’ and far from transparent…
The problem with ‘fair market value’
At the point of sale, the actual expense of retaining the device at fair market value isn’t made clear. We’ve taken on a lot of clients that have underestimated this cost in the past, and therefore misunderstood the perceived value of tech leasing in the first place. This is because ‘fair market value’ is based on the retail price on the open market, rather than a trade-in value. Essentially, they’re paying full price to retain a second-hand piece of equipment.
Many of our clients have felt cheated by previous solutions that are neither transparent nor cost-effective. Don’t get us wrong – operational leasing is a good model for bigger businesses that have the structure and resources in place to hand back devices without disruption. The issue lies with a lack of honesty, communication and transparency for smaller businesses who are just trying to make the right decisions to support their growth, but fall foul to fair market value.
Lease Loop – the fair choice
We offer two flexible leasing solutions that reject the quick click-and-buy format of the internet as it is today, and support businesses with a long-lasting leasing relationship that truly delivers value.
Take our ‘Lease Loop Flex’ leasing model, for example. You lease your equipment for 1-4 years, after which you can retain your device(s) for one month’s additional repayment – saving the disruption of repairing or handing devices back and empowering you to keep equipment in the business that you’ve already accounted for.
Meanwhile, our ‘Flexscription’ model empowers businesses to return products at the end of their lease cycle. However, if you change your mind and wish to retain your device, we won’t charge fair market value. Instead, we offer a range of end-of-lease options that are made clear at the point of sale and repeatedly throughout the lease. These include:
● Hand goods back at the end of the primary period
● Enter into a rolling monthly contract while paying the same monthly amount
● Choose a 12- or 24-month extension period at a reduced rate, and then retain use of the goods indefinitely
● Pay a one-off “full extension fee” at the end of the primary period to retain use of goods indefinitely
Discover leasing that truly supports your mission
We strive to give every single business we partner with control over their expenditure, transparency into what is involved, and supportive communication throughout so they know where they stand.
If you’re in need of fair, cost-effective, upfront Apple device leasing, look no further than Lease Loop. Let’s talk about your business and find a solution that fits.