Frequently Asked Questions

why finance IT?

Financing allows you to spread the cost of acquiring IT solutions. Rather than tying up valuable capital on fixed assets, financing can help you free-up cash and lines of credit for profit generating opportunities. Because the product lifecycle of IT equipment gets shorter every year, many businesses opt to finance this technology. Leasing solutions allow businesses to acquire current technology and avoid the cost of owning out-dated equipment. Financing eases cash flow management by providing customers with the option to manage equipment expenditures with fixed monthly costs.

where do I go for more information about hptf products?

Contact Readycrest free on 0800 0196060 9:00am to 5:30pm GMT Mon-Fri or email hp@readycrest.co.uk

are there limits to financing software or intangibles?

It depends on the finance plan - but any amount may be financed.

can support and services be financed?

Yes. HP maintenance may be financed over the term of the agreement, subject to certain criteria. All equipment must be maintained whilst on lease.

is there a minimum amount that can be financed?

Yes. It depends on the type of finance plan. Please refer to our product guide for more information.

what happens if I have problems with financed products?

All equipment warranties from your supplier are passed back to you, and you should take up any issues directly with our supplier, in the normal way.

does hptf use a bank to fund its leases and plans?

Yes. All finance agreements offered by hp technology finance (HPTF) are funded by Hewlett-Packard International Bank (HPIB). We are able to source funds because of the size and strength of the Hewlett-Packard Group.

leasing

how does leasing compare with other financing options?

Leasing is especially relevant for businesses that want to preserve their cash flow position and protect against technology obsolescence. When acquiring new IT equipment the payment choices range from cash purchase, to loans, to payment by credit card, to leasing. Leasing compares very favourably with these other payment options in that it offers a combination of:

• minimum initial cash outlay
• fixed payments
• ease of upgrading and adding additional equipment
• flexibility of exchange and trade-in
• avoidance of obsolescence

why should I lease equipment instead of buy?

Leasing is flexible. Companies have different needs, different cash flow patterns and different income streams. Your business conditions - cash flow, specific equipment needs and tax situation help determine the most suitable structure of your lease. A lease provides the use of equipment for specific periods of time at fixed rental payments and allows you to be more flexible in the management of your equipment.

Leasing is practical. By leasing, you transfer the uncertainties and risks of equipment ownership to the lessor, which allows you to concentrate on using that equipment as a productive part of your business.

Leasing is cost effective. Equipment may be expensive and some costs can be unexpected. When you lease, your risk of getting caught with obsolete equipment is lower because you can upgrade or add equipment to meet your changing needs.

Leasing allows you to stay on the cutting edge of technology. Business managers have learned that the primary benefits of higher productivity and profit come from the use of equipment, not owning it. Leasing helps conserve your operating capital and keeps your other lines of credit open. You don't tie up your cash in IT and you avoid costly down payments. Leasing may also help you to better manage your balance sheet.

how do I set up a lease with hptf?

Contact Readycrest free on 0800 0196060 9:00am to 5:30pm GMT Mon-Fri or email hp@readycrest.co.uk

what are the tax advantages of leasing?

The tax benefits from leasing will depend on the hp technology finance product that you choose. If you choose a lease solution then the payments should be fully tax-deductible expenses. However, if you choose a hire-purchase agreement you will, subject to tax capacity, be able to claim writing down allowances for the capital value of the asset that you are financing. The interest element of a hire-purchase agreement can also be treated as a tax-deductible expense.

on what basis are my lease costs calculated?

All finance costs are based on the NET price of the equipment being financed.

how much will my lease cost?

The lease cost depends entirely on the value of the equipment being financed, the frequency of payments, and the term of the lease.

can I delay the start of my payments?

Yes. The first payment can be deferred by up to 6 months (subject to credit status). Bear in mind however, that this will affect the interest payments.

what if I want to terminate the lease before the end of the term?

A lease may be voluntarily terminated at any stage, but this will involve the payment of all outstanding amounts due.

is hptf leasing available to individuals?

Currently, hp technology finance offers commercial leasing only to business customers, not to individuals.

can I upgrade or add equipment?

Yes. Using our exchange rental plans equipment can be upgraded at any time, either co-terminating with the existing lease or starting a new term.

what is the minimum and maximum term that I can rent?

We recommend a 2 or 3 year plan as in most cases this reflects the economic life of the equipment. We will consider lease agreements for shorter terms or up to 5 years in length.

when do I start making rental payments?

Typically the first payment will be collected on the first day of the month following the date of equipment acceptance by you, the Customer.