Leasing Arrangements from FSG Technologies

Leasing Arrangements

BNP Paribas Lease Group – in brief

BNP Paribas Lease Group (BPLG) is a wholly-owned subsidiary of BNP Paribas, global financial institution operating in over 85 countries with more than 162,700 employees.

BNP Paribas is the 5th largest bank group in the world and ranked 13th in the Forbes Global 2000 listing.
Rated AA+ by Standard and Poor’s, Aa1 by Moody’s and AA by.
Fitch – a significant vote of confidence in the Group’s financial stability from the world’s leading credit agencies.
Net banking income in 2007 of £25bn.
Net Income (before tax) in 2007 at £8.7bn.
In the UK, BPLG has 260 employees specialising in asset finance with a dedicated Technology Solutions division.

Lease vs. Cash vs. Loan

Leasing offers significant benefits to you over alternate finance options. Here’s a quick summary:

BENEFIT TO CUSTOMER	LEASE	CASH	LOAN
Payment flexibility	Yes	X 100% upfront payment	X payments could vary depending on interest rates
No impact on bank credit lines	Yes	Yes but reduces cash reserves	X
Reduces impact of inflation	Yes	X	X
Tax benefits*	Yes	X	X
Reduces risk of obsolescence	Yes	X	X
No end of life responsibility	Yes	X	X
No deposit required	Yes	X	X could be as high as 20-30%

Leasing Benefits

Essentially it is the useof the equipment and not outright ownership of the asset that generates profits for a business. As economic lifecycles for technological equipment get shorter, it is this simple notion that explains the growing popularity of leasing as a means of technology acquisition.

Key benefits of leasing to you are:

BENEFIT	HOW IT BENEFITS
Conserve working capital	With a lease arrangement, you get 100% of the financing so no upfront cash is necessary. The cash can be used to better effect elsewhere in the business
Preserve credit lines	Lease finance does not impact on credit lines you may have in place with your bank
Tax advantages	Rental payments are often fully tax deductible which effectively reduces the cost of the lease and taxable income
Reduced risk	Risks associated with equipment obsolescence are greatly reduced with leasing as there is the flexibility to add or refresh assets at any point during the term of the lease. The lessor is also responsible for asset disposal (to meet WEE regulations for example), not you
Fixed payments	Payments are fixed for the term of the contract enabling accurate budgeting and cash flow projections
Scalability	A growing business needs the ability to invest in equipment and infrastructure to support its widening operations. Leasing is a great way to adapt and upscale your technology to suit a changing environment