We are proud to offer schools, utilities and municipal governments financing from American Express Equipment Finance. We offer competitive leasing rates, outstanding service and master lease agreements.
If your school or department is planning a major purchase, it pays to consider leasing. To evaluate your options, please consult these helpful guides:
When you finance equipment from Zones with an American Express lease you can:
Further, with American Express Equipment Finance you can secure
low rates designed
specifically for schools as well as contract for
a variety of lease terms. Whatever you need, from networking and desktop computers to the most sophisticated servers and firewalls, American Express Equipment Finance and Zones make it easy and fast to put in place and within budget.
Because of the sizable cash outlay involved in equipment acquisitions, many local, state and federal government departments and agencies lease to conserve capital. Other financing programs often require a sizable down payment. Leases, on the other hand, usually require only that the first and last payments be paid at the start of the lease. When you lease, your money may be better spent on appreciating assets and investing capital in your education services. And since monthly lease payments usually remain fixed for the entire term of a lease you can continue to accurately budget into the future. Knowing your payment amount in advance enables you to budget and manage technology investment dollars over time.
Leasing traditionally gives schools more flexibility than other financing options offer. You can choose the length of the lease, for instance, as well as include provisions for technology upgrades. Flexible features of leasing include one-stop shopping (hardware, software, peripherals, shipping and warranties can all be included in your lease) and easy add-ons.
Traditional methods of financing usually do not include soft-cost items such as installation, maintenance, conversion, training, consulting fees and freight. With leasing, you can build soft costs - up to 20% of the total value of the lease - right into the terms of the lease.
For other advantages over traditional financing, consult our Comparison Chart.
Leasing programs and procedures are specifically designed to take the red tape out of financing - whenever possible avoiding typical "bank requirements." Some banks may require compensating balances or other restrictive polices such as sizable down payments, client list reviews or cash flow projections. American Express Leasing is committed to simplifying finance - and making it easy to obtain quality IT products and services from Zones.
For other advantages over traditional financing, consult our Comparison Chart.
Current tax laws allow American Express Equipment Finance to offer rates to schools and municipal governments that are much lower than those they can offer to for-profit corporations. American Express Equipment Finance leasing through Zones is available to state schools and municipal governments only. These offerings are subject to credit application approval, $3000 minimum purchase required.
American Express offers lease terms of 12, 24, 36, 48 and 60 months. Other options and customized terms are available to qualified applicants.
We offer a standard municipal lease for governments and educational institutions. It is a $1 Buyout lease. At the end of the lease you simply purchase the equipment for $1.
| What is the capital expense? |
Full cost of the equipment plus finance charges |
Full cost of the equipment |
A percentage of the cost of the equipment, paid out over the useful life of the equipment |
| What is the initial cash outlay? |
Depends on down payment required by institution - industry standard is usually 20% |
100% of equipment cost |
Potentially only a small documentation fee. |
| What happens to my operating capital? |
Depends on the down payment required by institution |
Loss of liquidity |
Minimal effect with usually little up-front payment |
| How are my payments structured? |
Monthly payments include equipment cost plus finance charges |
Entire cost paid up front |
Set monthly payments, fixed for the entire term of the lease |
| What are the associated tax advantages? (Consult your tax advisor) |
Depreciation of the equipment over five years and interest is expensed in fiscal year paid (longer than the competitive life of computer equipment) |
Depreciation of equipment over five years (longer than the competitive life of computer equipment) |
May be a fully deductible expense. (Consult your tax advisor) |
| Are there options for upgrades that limit my exposure to technology obsolescence? |
Usually none provided via bank loans |
Usually none provided when purchasing with cash |
Yes, you have options that will keep you ahead of the technology curve and keep your products up to date. |
| What are the impacts on my business? |
Often requires initial capital outlay and depreciation may exceed useful life of equipment |
Often requires significant initial cash outlay which could be better served invested in your business |
Protects lines of credit and preserves cash flow, allows for tax advantages in many instances, and keeps your company ahead of the technology curve |
How do I qualify?
American Express Equipment Finance is available to businesses, public schools and municipal governments only. (If you have been in business less than two years, the owner(s) will be required to personally guarantee the lease.)
What is the process to open a Master Lease with American Express?
The fastest way to start the process is to complete the online application and submit it through our secure site directly to American Express. Usually within two hours we will know if your application has been approved. After receiving an approval, we will submit your equipment list to American Express. They will prepare documents and e-mail or fax them to you for your signature.
What is required before my order ships?
You must have signed and returned the lease agreement and all other required documents to American Express. Once received, American Express will notify us and we will ship your order.
When do my lease payments begin?
Once you have received all of the equipment you ordered, your lease will automatically begin and you will be invoiced monthly.
What is an American Express Master Lease Agreement?
Many organizations require different types of equipment at varied times. These organizations are better served with a master lease agreement from American Express. Master leases are established to provide flexible schedules, as your company's equipment needs change. Master leases can be established based on projected equipment needs over a specific period. Zones will coordinate with you and American Express to find the best solution for your company's long-term needs. Please call 1-800-408-9663 or your Account Executive for more information on master lease agreements.
What is a lease term?
A lease term is simply the number of months you specify to lease your equipment. American Express offers lease terms of 12, 24, 36, 48 and 60 months.
Can a lease be terminated early?
Leases are non-cancelable contract's and any decision to terminate a lease will still require you to pay out the remaining stream of payments on the contract. If you are considering ending your lease early, please contact American Express to discuss your options before you make your decision.
Can I include software on a lease?
Yes, you can include software on your lease, as long as it makes up 20 percent or less of the total value of the lease. You may also include software licensing, though, because software licensing is non-transferable, this must be via the $1 buyout lease option. Further, the lease term must match the duration of the licensing term.
What are my responsibilities when leasing?
Your responsibilities include keeping the equipment in proper working order, having insurance that covers damage and theft of the equipment, paying your lease payments on time, and ensuring that the computers are returned in good working order when the lease term expires.
Are advance payments required?
For the majority of leases, there is usually minimal or no advance payment required other than a nominal documentation fee. However, based on the credit information and time in business, some companies may be required to make advance payments or a security deposit to begin the lease. This is determined strictly by American Express and not influenced by Zones, Inc.
We are dedicated to serving all of your leasing requirements - with a brand name synonymous with quality and respected as a leader in the finance industry. Our staff of leasing experts will work with American Express and your dedicated Account Executive to create the solution that will best fit your department or institution.
You can begin by clicking the Submit as Lease
button in your Shopping Cart and completing the one-page American
Express online lease application. Or simply call 1-800-381-9663;
your Account Executive will be glad to answer any of your questions
and help you get started.
