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A lease is a simple and economical way to obtain the benefits of the latest technology without assuming the upfront costs, and risks, of ownership. Simply defined, a lease is a usage agreement between an equipment owner (the lessor) and a user of that equipment (you, the lessee). The lessee pays a periodic fee, usually monthly, to the lessor for the use of the equipment. Leases most often take the form of written contracts with specific terms and conditions spelled out: length of term, amount and timing of payments, and any end-of-lease conditions or restrictions.

The lessor is usually viewed as the owner of the equipment during the lease term, but depending on the type of lease you select either you or the lessor may be able to claim the benefits of ownership for tax purposes.

Regardless of which type of lease you choose, the future expected value of the equipment (the residual value) is considered when pricing most types of leases. The residual value is the lessor's estimate today of the equipment's value when the lease term ends. At the end of your lease term, you'll have the following alternatives (depending on the type of lease you select):

Operating or Fair Market Value (FMV) Lease
Also known as a true lease, an Operating lease generally provides the lowest monthly payment, offering lease terms of 18, 24, 36, or 48 months. The lessor (Dejai) retains ownership of the asset for tax purposes, and the lessee (you) typically claims all lease payments as an operating expense or tax deduction.

At the end of the lease term, you can either:

• Upgrade to the latest technology and enter into a new lease
• Purchase the equipment at its then-fair market value
• Renew or extend your lease at a lower monthly payment
• Continue using the equipment on a month-to-month basis
• Return the equipment to Dejai financial services with no further obligation

Finance Lease
This type of lease is primarily designed for customers who want to own the equipment after their lease term ends. With a finance lease, you (the lessee) claim ownership of the asset for tax purposes (although Dejai is the actual owner), so you can claim depreciation and interest expense deductions. At the end of the lease term you (the lessee) take ownership of the equipment.

WHAT CAN WE FINANCE ?
Dejai can provide a finance solution which includes:
· Compaq & other vendor equipment: - hardware, accessories and Internet devices;
· Intangible Costs: Many transactions have a tangible component such as hardware. But what about the soft costs that can sometimes be larger then the original hardware cost. Dejai can provide finance for these so-called intangible costs associated with the transaction. Intangibles can include:

• Software,
• Training,
• Installation,
• Maintenance and Services
  
  

ASSET MANAGEMENT
Dejai can provide asset management services, which cover the your leased technology infrastructure. These services are designed to provide a cost-effective method that enables you to fully realise the benefits a Total Cost of Ownership (TCO) approach provides.

BENCH MARKING
To ensure customers get the best competitive advantage, the margin is identified above the swap rate and we explain how the calculation is made. You can then be satisfied that transparency for pricing has been achieved and the rates that won the bid are ensured throughout the relationship.

BUY-BACK PROGRAM
Dejai can purchase part or all of your existing technology and rent it back to you on a single Master Lease Agreement for the remaining term of its agreed useful life. This program can significantly improve your financial ratios and provide an immediate cash injection. Cash flow forecasts for technology can become more predictable with regular planned rental payments.

BENEFITS OF LEASING FOR CLIENTS

• Technology Obsolescence is a major problem in the IT industry. Technology is developing faster than we can afford to buy it - so leasing is the natural answer.
• How many companies nowadays buy their vehicle fleets? Not many, as they are high-cost items that depreciate rapidly, and leasing them to keep up to date is acknowledged as a better method of control. IT equipment is exactly the same.
• With an operating lease clients do not typically have the equipment on their books, therefore do not depreciate the equipment. The monthly or quarterly lease payments on an operating lease are also typically tax-deductible as an operating expenses.
• Leasing of IT equipment better matches the high cost of IT equipment against the benefits and revenue received over the life of the equipment - this improves cash flow.
• Precious capital is left free to be used for development and growth of the business, providing a better internal rate of return.
• Life cycle management of technology platforms is made easy and affordable - leasing provides a mechanism for regular technology updates, with long-term budget ability possible. Future requirements can be budgeted for in terms of $ per unit, per month, rather than having to save for a large installation.
• Clients can upgrade to the technology they need during their lease term. Our Leasing Account Managers will work with you to design the most cost-effective upgrade path for your needs.
• Our competitive rates and flexible structures make us the obvious partner for IT equipment