Technology Leases  (see also Technology Refresh Leases)

This is not lease financing in the traditional sense because most organizations don’t view the leasing of technology as a financial expenditure decision. Rather, it is seen as a cost controlling decision that permits upgrading and maintenance of the technology infrastructure, with no ownership risk.

In most organizations, as the price of computers came down below capital acquisition thresholds, PC’s were acquired on a departmental basis, resulting in a mixed technology infrastructure that did not support client/server networks very well. Technology leasing creates a method to centrally control both technology costs and network infrastructure compatibility.

The characteristics of a technology lease are:

• Typically 12- 36 months
• Open-ended in both time and money
• Indexed rates, usually US Treasury notes
• Upgradeability – features or units
• Monthly/Quarterly/etc. billing
• Tiered Pricing
• Partial shipments accepted
• Non-serial number specific
• Return "like for like"
• Early Termination under certain circumstances
• Multiple lease end options
  • purchase at Fair Market Value (FMV)
  • extend on a month-to-month basis
  • renew at FMV for a specific term
  • return leased equipment to Regal

Technology lease financing from The Regal Group can provide important economic benefits to you, including the conservation of capital and protection against technological obsolescence. Our flexible programs are tailored to meet your specialized needs, whether for a single project or an enterprise-wide rollout.

Technology Refresh Leases

A 1994 Research Paper by The Gartner Group estimated that the five-year total cost of ownership (TCO) at $44,000 for each PC. This staggering figure has caused many organizations to consider the technology refresh lease to help address the TCO problem.

The technology refresh lease is a custom program designed to combat the life cycles of PC equipment. It represents the type of maximum flexibility available to you in the development of custom lease programs from Regal.

A sample outline of a technology refresh lease term:

There are many benefits to you in a technology refresh leases:

• A systematic method to upgrade and maintain your PC infrastructure
• The ownership risk is outsourced to Regal
• It is a budgetable, cost-controlled expense
• You invest cash at your internal Return On Asset (ROA)
• The effective Annual Percentage Rate (APR) is attractive
• You retain flexible end-of-term options
• Your credit lines are conserved
• The lease is 100% fixed-cost financing
• Lease payments are "self-funded" from the benefits of a homogeneous network infrastructure
• Lease payments are a period expense