Rent or Lease
Data Center Hardware Rental & Leasing With Integrity
When we offer clients our rental and leasing services, we enter into an agreement acting as the financier to provide equipment to the customer over an agreed upon period of time while the customer makes fixed monthly payments. At the end of the contract period, the customer can hand back the equipment, continue the agreement or purchase the equipment outright at market value from us.
FAQ - Frequently Asked Questions About Our Rental & Leasing Program
Why Would I Need to Rent or Lease Equipment?
Renting or Leasing equipment represents an intelligent solution to tying up large amounts of working capital while equipping you or your company with reliable, high performance computer systems and networks.
Reasons to utilize Integrity’s Rental or Leasing Options:
- Short term redundancy needed
- Testing new applications
- Short term usage
What are Some Benefits of Renting or Leasing?
- Flexible contract terms
- Fixed monthly costs and/or interest rates
- Payments can be claimed as tax deductions
- Equipment doesn’t sit “on your books” as an asset or liability
- Reduce risk in investing in technology that may become obsolete quickly
Who Can Lease?
Any company, organization, or association that is not affiliated or working on behalf of other equipment brokers, marketers or wholesalers. Unfortunately, we also cannot lease to individuals.
How is the Monthly Payment Calculated?
Terms are are determined by a Lease Rate Factor - a periodic rental payment to a lessor for the use of assets. Lease Rate Factor x Equipment Costs = Your Monthly Payment.
Overview of the Leasing Process:
- Your account manager will work with you to create a product quote for hardware, services or any combination thereof.
- Once the quote is created, your account manager then sends the quote to our leasing team where they will review and engage the leasing partner who provides the best rates and terms.
- The selected leasing partner creates a planning quote that provides a ballpark estimate on costs and structuring. Your account manager will share this quote with you. PLEASE NOTE: Depending on the value of the equipment included in the lease, you may be asked to supply your last two years of audited financial statements or tax returns and/or D&B number. If required, IGS and our leasing partners are willing to sign a Non-Disclosure Agreement (NDA).
- If, after reviewing your estimate, you have any questions or would like to see your deal structured differently, your account manager re-engages with the leasing specialist and the leasing partner. It is not unusual for a leasing quote to go through several different iterations while it and its requirements are finalized.
- Once you are satisfied with the terms, you will receive a firm quote from our leasing partners.
- After the lease documents are completed by you and returned to the leasing partner, IGS will receive a Purchase Order (PO) that will allow us to deliver your products and services. You are responsible for completing all paperwork and contracts with the leasing partner.
What Kind of Leasing Do We Offer?
The two most common types of leasing agreements are Fair Market Value (FMV) and $1 Buy Out.
A FMV Lease (rental lease) offers the lowest monthly payment and at the end of the lease term, you may purchase or return the equipment.
FMV leases also offer additional benefits:
- Conserves capital
- Lowest upfront cost
- Reduces total cost of ownership
- Simplifies budgeting
- Protects against tech obsolescence
In a $1 Buy Out option lease, you own the equipment at the end of the term. You'll also get the following benefits:
- Conserve cash flow
- Lower upfront cost
- Purchase equipment for a fixed price
- May have tax and accounting benefits (please consult your tax professional)
What if I Have Problems with the Equipment I Receive?
You will be contacted when your shipment arrives to ensure you receive exactly what you ordered. After your initial receipt of the equipment, IGS will troubleshoot problems are replace equipment as defined in your warranty. Lessee receives benefits of all "buyer" warranties and is responsible for maintenance.
Depending on the terms of the lease, you may be required to have a service or maintenance contract. Equipment must be returned in good working condition. IGS is not responsible for maintenance.
Who Owns the Leased Equipment?
The leasing company, as lessor, is the owner of leased equipment until you choose to purchase the equipment at the end of your lease.
Can I End My Lease Early?
The ability to terminate a lease early is determined by the terms of the lease, but is a rare situation that would make terminating a lease during its term an advisable option. There may be an early termination fee for ending a lease before the agreed upon term.
Can I Renew My Lease?
In most cases the Lessee renewal options provide guidelines on the renewal process at the expiry of the lease period.
Can Equipment be Purchased at the End of the Lease?
This depends on the leasing company and program. In many cases, the lessee can choose to continue to lease, purchase the equipment or return the equipment to the leasing company.
Who is Responsible for Servicing/Maintaining the Equipment?
The lessee is responsible for maintaining the equipment.
Who is Responsible for the Tax for the Lease?
The options you choose upfront may have tax and accounting implications. Talk to the leasing company's specialist and your accountant to determine the best options for you.
How Will I Be Billed?
I most cases, you may have the payment set up to automatically debit your bank account or the company will invoice you.
How Much Do I have to Pay Upfront?
This depends on the leasing company and the program. Payments typically begin at the start of the lease and will be for the following month (Ex: paying on September 1st gets you usage of the equipment for the month of September).
Individual lease details will vary depending upon the terms offered by the leasing company.
If you have any questions, please call us at 763-450-4666 or fill out the form below.
Learn more about our Rental and Leasing Services
*We will do our absolute best to respond to you in a timely manner. Please keep in mind that our regular business hours are Monday through Friday, 8am to 6pm. If you are contacting us outside of these hours, there might be a slight delay in getting a response to you. We appreciate your business and look forward to working with you!