Telecom Equipment Leasing and Financing

Windstream and GreatAmerica Leasing offer you innovative customer-focused leasing and financing solutions.

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Telecom Equipment Leasing and Financing through Windstream Business and GreatAmerica Leasing Corp provides flexible leasing and financing solutions that allow businesses of all sizes to upgrade to the most up-to-date communications platform. GreatAmerica Leasing—a national commercial financing company dedicated to helping businesses be more successful—offers competitive leasing and financing programs including traditional Fair Market Value and $1 Out Financing options as well as Rental Program options.

Telecom Equipment Leasing and Financing are ideal solutions for:

• Preserve your company’s line of credit. Taking a loan from a lending institution taps into your line of credit that you may need further down the road for something unanticipated.
• Lowering costs. Traditional bank loans often require higher down payments and the loan has to be capitalized which means it cannot be depreciated.
• Keeping the purchase off your balance sheet. Under the FASB 13 rules, financing programs may qualify for off-balance sheet financing and provide some financial benefits to your organization.
• Potential tax benefits. Many Windstream and GreatAmerica Programs provide you with tax benefits. The GreatAmerica Rental Program may be treated as an operating expense and be fully tax-deductible.
• The time/value of money and the Rule of 72. Consider how spending your company’s capital on equipment today could actually cost you money by not getting a return. Instead, think about investing it on an appreciating asset.
• Future proof your business.The GreatAmerica Rental Program is an innovative financing plan that allows you to upgrade your equipment should your communication needs change - ensuring you will always have the latest technology.

Telecom Equipment Leasing and Financing Options

Fair Market Value (FMV) Lease Option: An operating lease (true lease) termed contract in which a customer makes monthly payments for a specified term without intent to own the system.

• Usually qualifies for “off-balance-sheet” treatment, which means the payment is written off each month as an operating expense in pre-tax dollars.
• The system can either be returned or purchased for a “Fair Market Value” at the end of the term.
• Offers many tax benefits and typically offer the lowest monthly payment.

$1 Out Lease Option: A $1.00 Purchase Option Lease (capital lease or conditional sale) termed contract in which a customer makes monthly payments for a specified term with intent to own the system.

• From an accounting standpoint, this lease is treated as an asset on a company’s balance sheet, with tax benefits being taken in the form of depreciation.
• Lessee purchases the leased items for $1 at lease end.

GreatAmerica Rental Program: A rental option offering customers flexibility and peace of mind with the ability to update equipment and technology at anytime.

• Upgrade to new a new telecommunications system with a new, recast financial contract as your business needs change without any out of pocket expense or increase in payment.
• Cash is not tied up in a phone system—a depreciating asset.
• In most cases, qualifies for “off-balance-sheet financing” and may also provide significant tax benefits such as fully deductible payments.
• GreatAmerica assumes all of the risks associated with owning your telecom system—not you—and provides flexible end-of-term option.

Choosing an Acquisition Option: Cash vs. Leasing/ Financing

When businesses evaluate new technology, they often ask themselves the obvious question: What do I buy? But so often, they overlook an equally important question: How should I buy?

• Buying may seem to make sense. After all, you then own your equipment, plain and simple. But what do you really own? Technology depreciates at an amazing rate. Do you want to use your capital to pay for a depreciating asset?
• Ownership offers practically no benefit when it comes time for replacement. Although buying technology gives you ownership, it may not be the most economical means of acquisition.
• Consider how spending your company’s capital on depreciating equipment today could actually cost you money by not getting a return. The Rule of 72 states that if you invest or recycle your capital back into your business, you will not only see a return but also reveal the hidden benefit of financing. Here’s how it works: Simply take your corporate rate of return and divide it into 72. The answer is how long it will take to double your money. Therefore, assuming a 15 percent rate of return and dividing that into 72, you will double your money every 4.8 years.