Company's book exposure makes it difficult to replace outdated technology.

CHALLENGE:
One of the Nation's largest distributors of industrial and automotive products struggled with the book value vs. market value of an IBM AS/400 that they had purchased. As a result, they delayed the acquisition of any new technology, potentially placing the company at a competitive disadvantage. Before long, the growth of the company was literally limited by their outdated technology.

SOLUTION:
LEASENET developed a strategy to mitigate the company's book exposure and to allow maximum flexibility at a price equal to their current depreciation cost. The strategy involved a purchase-leaseback arrangement.

RESULT:
When the purchase-leaseback arrangement was executed, LEASENET actually paid the customer for the equipment, and the customer was able to take it off their books. LEASENET then structured a lease, giving the customer the flexibility to move into new technologies as needed in the future.

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