 What is a lease?
In simple terms, a lease is a contractual arrangement between the lessee (the customer) and the lessor (HP Financial Services). We purchase the equipment from your technology supplier (HP and non-HP) of choice and lease it to the lessee for a fixed, regular payment.
Are there benefits to leasing other than financial?
Yes. Leasing can help expedite equipment replacement and modernization creating a positive impact across all aspects of a business. Additionally, most lease arrangements free business owner's from worrying about technology end-of-life disposition issues, including environmental considerations, data security and destruction, and compliance with ever-changing disposition laws. These become the responsibility of HP Financial Services.
Is leasing right for smaller businesses?
No matter the business size, companies can benefit from leasing. Leasing or financing is a perfect choice for businesses that:
- Need to update its technology, but do not have the cash to buy it outright.
- Need to preserve cash for other business needs.
- Want one-stop financing of hardware, software and services, plus the convenience of a single monthly payment.
- Would like to refresh their IT technology on a regular schedule to help prevent obsolescence and disruptions in work flow.
- Need to dispose of old computers, servers or other IT equipment safely, securely and with the least impact on the environment but do not posses the core competencies to do so.
- Would like to write off its IT spending every month.
Do I need to submit any financial statements or other documentation along with my lease application?
In most cases, you don't need to submit any additional information for transactions under $75,000. For transactions greater than $75,000, HP Financial Services requires your most recent two years' financial statements (preferably audited), and an interim statement if the last annual statement is more than six months old. Some customers, especially new businesses less than two years old, may be asked for a principal's personal guarantee.
Do I need to provide insurance on my leased equipment?
Yes, HP Financial Services leases require that customers insure equipment for its full replacement. You will need to provide HP Financial Services with proof of insurance and name HP Financial Services as "loss payee". You can easily arrange the necessary coverage through your current insurance provider. If you don't provide proof of insurance, a monthly risk fee will be assessed on your invoice.
When do my lease payments start?
You'll receive your first invoice shortly after you receive your equipment. Typically, regular lease payments start 30 days after the lease documentation is completed. To meet the unique needs of enterprise customers, we can tailor invoice formats and payment schedules.
Can I move my leased equipment?
In the United States, with proper notification to HP Financial Services, you may move your leased equipment to virtually any location within the country. For additional information on notification procedures, please contact our Rapid Response Center at 1-888-277-5942. In all other countries, please contact your local support center for details, notification procedures and possible restrictions.
Can I add to my existing lease when I need more equipment?
In most cases, you can add additional technology onto your existing lease at any time during your lease term quickly and easily. We'll simply recalculate your lease payments to include the new equipment (in most instances, your lease term will remain the same, only your payment amount will change)
What can be included in my HP Financial Services lease?
HP Financial Services finances every product and service HP offers. We will also include the costs of shipping, installation, taxes, services (provided by either HP or an Authorized HP Reseller), and other manufacturers' equipment in your lease.
Does leasing affect my HP warranties?
No, all the same warranties apply whether you buy or lease your equipment.
Can I cancel my lease?
No, a lease is, by design, a non-cancelable contract. You're responsible for all payments throughout the course of the lease; however, HP Financial Services will work closely with customers to ensure their needs are met with flexible early buy-out, add-on, or technology refresh options.
What happens at the end of my lease?
Depending on your lease terms, you may have several options available to you at the end of your lease. Options include returning your equipment and upgrading to the latest technology with a new lease, extending your lease or choosing to purchase the technology at a fair market value. A $1 end-of-lease buy-out is also available.
What is the "fair market value" of my equipment going to be, and how is it calculated?
The fair market value is defined as the price for which the equipment could be sold or rented in a transaction between unrelated parties, so it's purely "market driven" and therefore can't be set in advance. Per IRS guidelines, if the end-of-lease purchase price were guaranteed up front, your monthly payments would not be fully tax deductible. |
