CAPE TOWN – IT Asset Disposition specialist company Xperien is moving into the equipment rental space. The company has partnered with independent financial services company Merchant West to provide blue chips and Government with a fresh line of alternative funding to reduce the cost of IT assets.
The partnership offers a full end-to-end IT Asset Lifecycle solution for corporates – from acquisition to financing, management and disposal. Merchant West will structure a finance deal that reduces total usage cost of any IT asset and now offers finance options that have no impact on existing funding from other financial institutions.
The tough market conditions and increasing capital equipment redundancy rate are forcing businesses to rethink their asset finance and asset ownership options. Rentals are fast becoming the preferred option for depreciating electronics that require regular replacement. It offers massive savings compared to ownership, regardless of whether one pays for these assets upfront or through traditional financing.
Merchant West head of technology asset finance Monique Watson points to the rapid rate at which technology changes and depreciates in real terms. "Partnering with Xperien allows us to offer a holistic Asset Lifecycle Product to its clients, from inception right through to the end of the asset’s useful life where clients can further benefit from the end of lifecycle value-added services, such as data destruction, reverse IT logistics and disposal."
The benefits of financing assets is not only the flexibility of repayment options either on a monthly or quarterly structure, but rentals are 100% tax deductible, minimising income tax obligations as well as savings on costly administration fees.