While essential software may not be in a company’s budget, leasing can prove to be an excellent, cost effective alternative.

Revenues for software and services represent over 70% of the information technology market and is the fastest growing segment in this market. This is especially true as computer hardware is becoming less expensive. Software financing represents over 30% of information technology finance market. 

For these reasons and more, it is important for you to have a basic knowledge and understanding of software financing alternatives.

• The most basic reason why companies choose financing as the alternative is to manage and budget cash flow through periodic payments. Annual, quarter or monthly payments simplify budgets versus a large multi-year up-front cash purchase price.
• Payments under the Manufacturer’s License Agreements usually coincide with the manufacturer’s license agreement and provides excellent asset tracking for global customers.
• Other reasons vary depending on a customer's tax, accounting and project management objectives.

Basic Advantages:

Conserve/Expand Working Capital - 100% financing, improve cash flow, hedge against cost increases from the manufacturers

Protect Against Obsolescence - Match financing with useful life

Cost to Benefit Matching - Costs are normally heaviest at the front end, while benefits are not recognized until the project is fully implemented and utilized over the preceding months. Costs and benefits track more closely to payment terms when structured properly.

Term & Payment Flexibility - Create budget solutions vs. large one-time upfront payment

AEL competitive advantages for software solutions:
 
-Customized Solutions For Larger Transactions
-Competitive Finance Rates for software only transactions
-Flexible Terms and Conditions
-One-Page Installment Pay Agreement
-Asset Tracking & Reporting
-Transactions Ranging From $75,000 To Over $10 Million