The increased agility provided by technology can be matched by an equally dynamic method of financing, supporting both your business goals and technology needs. Besides a standard Capital purchase, DG offers flexible finance terms in our IT Financing.
Traditional Capital Purchasing
Traditional capital (CAPEX) expense – depreciated over time / on balance sheet
Scheduled / Consumption Payments
Operating expense (OPEX) – ongoing P&L expense
Benefit from digital capabilities now & pay later – fit payment/s into your budget cycle
Budget Retirement ~ “DG Tech Bank”
Retire (‘bank’ or park) excess budget funds for use at a later date
Telstra Bill & Tech Funds
Pay via your monthly Telstra invoice and/or retire your Telstra Technology Funds
Delivering IT – No Capital Outlay & Immediate ROI
Capital Expenses vs Operating Expenses
How Can Your Organisation Benefit?
In the current economic environment Corporations and Governments are reducing the capital budgets!
Total finance solution A financial solution covers all aspects of your purchase (hardware, software, subscriptions, support & professional services ), which means capital expenditure is aligned with the products income generation, ultimately protecting capital reserves and cash flow creating a more economic robust company.
Flexibility of repayments Repayment schedules can be aligned with your operating budgets, cashflows, future product expansion, income generation or product utilisation (Pay as you use).
Tax advantages:Payments can reduce taxable income or you can manage the asset as a depreciation expense. Remember that you treat leases like rentals by expensing the entire lease payment.
Lower cost of ownership Based on many different variables, your company may be able to utilise tax benefits associated with leasing. In addition, the Internal “cost of capital” needs to be added in to the overall cost of the purchase. A corporations internal Cost of Capital can be as high as 12% per annum making leasing more variable with low interest rates.
Reduce Obsolescence Leasing makes it easier to replace or upgrade an asset. Many larger clients will lease rather than purchase to ensure that the equipment stays current with newer, faster and more efficient technology.
Avoid Additional CostsIn addition to the cost of the equipment, a lease can also include extra expenses like installation, delivery, and maintenance.
Fixed PaymentsLease payments are not affected by market conditions and are fixed for the term of the lease, protecting against inflation and higher payments.