Financing Options

For growing businesses, choosing a system that meets your needs today can be difficult and anticipating what your needs will be in the future is nearly impossible. That being said, leasing solutions offer flexibility and peace of mind: you can preserve your capital, protect your credit lines, reduce the risk of technological obsolescence, and streamline your outlay with monthly payments.

How to buy “food for thought”
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While you’re deciding which new Kalothia solution is right for your business, you may also want to take some time to consider a few things:

• Protect your credit lines
  Taking out a loan or drawing against your line of credit will tap into your borrowing power which you may need down the road for something unexpected.

• Accounting treatment
  You may prefer to keep your new technology off of your balance sheet. If structured properly, some programs can be classified as an operating expense.

• Tax benefits
  Some leasing programs have deductible monthly payments. Check with your tax advisor to learn more.

• Capital expense vs. operating expense
  Do you really want a quickly depreciating asset as a capital expense?

• The time / value of money
  Consider how spending your company’s capital on equipment today could actually cost you money by not getting a return. Instead, think about investing it on an appreciating asset.

Finance Options

Kalothia has partnered with TAMCO in order to offer programs to customers who prefer to finance their technology for any of the above mentioned reasons. We are pleased to offer a few options for your business to consider:

1. TAMCO Shield^®
   This program provides more value and less risk than traditional leasing. Unlike a capital lease, Shield can be recorded as an operating lease if structured properly. Many businesses find an operating lease desirable because technology loses value quickly and therefore they prefer to keep that sort of liability off their books. Key features of this program include:
    

• System Replacement Guarantee (SRG)
  If new technology becomes available or business needs change, your equipment can be replaced at any time during the contract term without penalty, hidden costs, or a rollover balance. The existing contract is forgiven and a new one issued for the new solution*.

• Act of God Coverage
  You can be reimbursed up to $5,000 for your out-of-pocket insurance deductible cost* in the event of a natural disaster including hurricane, earthquake, flood, lightning, or tornado.

• Bundled Maintenance / Service Plan
  Lock the cost of Kalothia‘s maintenance or service agreement at today's rates for the duration of your contract term. The monthly cost will be "bundled" without finance charges into the same payment as your equipment.

• Flexible End of Term Options
  At the conclusion of your Shield agreement, you have several options including:
  
   

2. $1 Out Lease

The $1 Out Lease requires you to purchase the leased equipment at the conclusion of the agreement. This is an ownership program, so there is no flexibility or features – at the end of the term you own the equipment upon the last payment of $1.

3. Fair Market Value (FMV) Lease

With an FMV program, ownership is optional so there is some flexibility here. The FMV Lease allows you to return the equipment or acquire it for a “Fair Market Value” buyout quoted at the end of term.

Which Method is Right for You?

Only you can answer that question. We encourage you to explore all of your options before settling on one. When you decide on what to buy, ask your Kalothia representative about “how to buy”. Ask them about the TAMCO Shield program.

Kalothia can provide you with a finance proposal that compares all four acquisition methods side by side for your analysis: Cash, $1 Out, FMV, and Shield.

We hope that you will find this information useful while deciding how to buy. And we’re more than happy to give you more information should you need it.

To learn more about TAMCO, click here.

© 2011. TAMCO Shield’s SRG and Act of God Coverage are both guaranteed in writing with complete details and requirements outlined in the customer contract. You should consult your accounting advisor regarding the benefits of financing and the impact on your books and taxes. While some programs provide tax benefits, every situation is different and laws vary. TAMCO programs are offered and administrated by TAMCO Capital Corporation in the United States and TAMCO of Canada, ULC in Canada. TAMCO Shield® and hello TAMCO® are registered trademarks of the TAMCO Capital Corporation in the United States.