Fiscal challenges addressed by lease-financing include:

Capital Constraints – Reduced financial support from state and federal sources and enrollment pressures from increased tuition and fees are causing procurement officials to defer vital equipment acquisitions and facility upgrades until planned into future budgets; subjecting them to price increases. Lease financing provides existing budgets with the financial flexibility to complete vital projects which can be paid for over time at low interest rates with less valuable, future dollars..

Multiple IT Platforms – Financial pressures on limited resources, and varying, but unique departmental needs require contracting officials to employ alternate procurement methods to increase functional efficiencies and reduce the administrative burdens of ongoing contract administration. Lease financing is a convenient and economical acquisition tool for equipment that has a useful life to short to fund with long term bond proceeds, and it has the flexibility to accommodate multiple IT platforms within the same organization.

Surplus Property Disposal Problems – Years of increasing investment in IT equipment has generated excessive inventories of non-usable items that carry costly transfer, storage, and disposal problems. Lease financing is a cost-effective tool for IT acquisitions and replacements, and eliminates the burdens of disposal and the related resource consuming activities.

Benefits of lease-financing include:

• Allows an asset to be paid for as it is used without the commitment of a long term acquisition
• Protects against equipment becoming technologically obsolete
• Contributes to the preservation of established budget allocations
• Strategy that reduces cost in one budget year and spreads project costs over multiple periods

Providence Capital’s lease-finance payment plans can be provided directly to College or University, and also via payment plans that we might offer through supplier that you select.