If a company is considering a term loan, they should carefully consider all of the terms and conditions that might come with it. There are usually some fees involved, and the company may be asked to make a down payment, or to keep compensating balances. These are all additional expenses that a lease will not [...]
A business may do a net present-value comparison between rental and purchase, and conclude that owning is cheaper. But as we showed above, the cost of cash is usually higher than the debt rate. Cash is a scarce asset on the balance sheet, and a reasonable position is to use the Weighted Average Cost of [...]
The prospect of avoiding interest and financing charges by paying cash is pretty attractive to some companies. But cash isn’t free. It’s a limited asset, and there may be better ways to use it than tying it up in a depreciating asset like IT. Because, face it, in 2 years your IT resources will be [...]
Short term credit is an important resource to financial managers. But even when rates are comparatively low, and particularly in a challenging economic environment when short-term credit is often hard to come by, it makes more sense to use an external, more cost-effective source of financing for IT investments, and to preserve short-term credit for [...]
A line of credit typically has to be secured by R 5 to R 10 of high-quality assets for every R1 borrowed. This makes it quite a limited resource that should be kept in reserve for items that cannot be financed in any other way. The line of credit should be the last resort, in [...]
Long term rental and monthly repayments can definitely save your business from losing significant cash flow in one fell swoop. With rapid advances in technology, most companies following the conventional way of thinking (in that buying is cheaper) are left with old equipment and very restrictive capital expenditure budget, which leaves them lacking the budget [...]
In 2006, a poll by Tickbox.net showed that workplace dissatisfaction increased significantly with the age of the computer equipment in use. People simply cannot work with old technology and slow computers. (This will only increase as technology is improved).Business must stay up to date with technology in order to remain competitive and productive. However, due [...]
Depending on your unique situation, Spartan can help by crafting a rental option tailored to your exact requirements and needs. It can be a pure rental, where you have already lined up the vendors you wish to use to supply, install and support your equipment, and you are just looking for a rental partner to [...]
In addition to pure rental finance, Spartan also offers a host of additional Value Added Services , which can include procurement, installation, insurance, maintenance, software finance, asset management, support and disposal of ICT and all related technology equipment. This equipment can include telephony, office automation, and even consumables. How you decide to use these offerings [...]
The rental term is usually over 36 months, with options ranging from 12 through to 60 months. We have plenty of plans to choose from and Spartan is constantly creating new ones.