Navigating what can appear to be a minefield of IT leasing options isn’t always easy, but knowing the right questions to ask will help you make better decisions when it comes to choosing a leasing partner– based on overall value, not just cost alone. Asking the right questions when evaluating lease options can save you time and money in the long term.

Our top 8 questions to ask are:

1. How much will the capital cost and what is the interest rate? This will help you to see the bigger picture and evaluate exactly how much you are spending and enable you to make comparisons with alternative options.

2. Is there a residual value included in the lease and if so what is the amount? Knowing any residual value will enable you to validate the interest rate and assess if the assumed residual value is set at a realistic level.

3. What is the planned life for the assets? Agreeing from the outset how long you plan to keep your assets will help determine the correct lease term and establish whether you are likely to be paying any extension rentals.

4. What is your past history of refreshing your IT? When evaluating a lease, it is important to look at whether you have previously been able to return your assets or refresh them at the end of the primary lease period, or if you have extended the life of the assets for an additional period. Most organisations state that they will return their assets at the end of a lease but are generally only able to return up to 80% of assets at the end of the primary lease period. It is important to know this in order to make a proper full-life-cost evaluation.

5. Does your leasing provider give you a process and system to help you manage your assets and notify you when each asset has reached the end of its life? Without reliable systems and processes, it is difficult to determine realistic end-of-life dates for IT equipment. Integrating asset management into your lease agreement will enable you to track and monitor equipment and will help you manage the replacement of equipment. An integrated process and management tool can save you time and money and provide valuable information when it comes to end-of life disposal and replacement. It can also ensure assets with residual or re-sale values are found so that they can be sold or replaced in a timely manner.

6. What happens at the end of the life of the asset or the lease; do you have to pay any end-of-lease charges or costs? It is wise to have a frank discussion before you sign the lease agreement. You should have a clear view as to whether you want to return the assets at the end of the lease and whether the lease provider genuinely wants the assets back. Ask the lease provider to explain the basis on which they set residual values. Is it a portfolio approach, whereby they only expect a certain percentage to be returned, or do they set residual values based on the actual equipment’s likely future value. Do your objectives match your lessors?

7. How do you dispose of IT equipment and deal with data and environmental issues? Companies can find themselves in hot water if they don’t comply with environmental regulations when disposing of IT equipment. There are also legal implications around data security when disposing of old machines. A good IT leasing partner will be able to help with environmentally safe and secure disposal, which will save you time and protect your organisation from reputational or legal risks. The logistics and disposal should be at no cost to you.

8. If you keep the assets, what are the costs? If you do choose to keep the leased assets at the end of the agreed lease period, costs might include lease extension charges. Your leasing provider should tell you in advance what these charges would be. It is prudent to talk about this possibility at the outset – before you sign any agreements. As the saying goes, “forewarned is forearmed”. Only by considering the whole picture can you fully evaluate what is the best way to acquire your IT equipment. You can put yourself in the driving seat by asking the right questions.

Speak to one of our experts to learn more about our market-leading Technology Lifecycle Management solution.

Why is technology so important to a prosperous future?

Businesses that fail to adopt new technologies risk getting left behind. The best businesses ebb and flow with technology, immersing it into every part of their organizations.

The advancement of technology is mesmerising, and it only seems to be speeding up. Smart businesses recognise they need to adopt new technologies to compete, leading to a proliferation of equipment.

As a society, we only have access to a finite amount of resources, and to manufacture just one desktop computer and monitor takes roughly 530lb (240kg) of fossil fuel, 48lb (21.8kg) of chemicals, and 1.5 tonnes of water. Despite this resource-hungry process, the United Nations estimates that we discard 20-50 million metric tonnes of e-waste every year!

While there is no doubt that more needs to be done to recycle IT hardware responsibly, it’s also vital that we extract as much value as possible before sending equipment to its grave. 3 Step IT is a firm believer that one man’s trash is another man’s gold.

98% of devices collected from 3 Step IT customers in 2017 were rehomed, achieving responsible environmental practices. In addition, data security best practices were achieved with Blancco Data Eraser solutions.

Customers of 3 Step IT and Blancco can embrace new technologies quickly and easily, while retaining peace of mind that their data is protected.

How do bancco and 3 Step IT work together?

3 Step IT and Blancco were both founded in the year of 1997. That year, the companies built a partnership to securely erase IT assets at end-of-life.

The combination of 3 Step IT’s lifecycle management solution and Blancco’s data erasure solution enables businesses to succeed in a Circular Economy—even before the term was coined and popularised.

What is the circular economy, and how do we make it a reality?

Traditionally, IT equipment goes through three lifecycle stages: Make – Take – Dispose; however, this isn’t a sustainable option, both economically and environmentally. 3 Step IT reimagined this process and developed a circular solution comprised of four lifecycle steps: Make – Take – Reuse – Recycle.

3 Step IT makes it easy for businesses to refresh their technology; simply, securely, cost effectively and in a socially-responsible manner. They also remove the admin burden of procuring new IT and managing that IT throughout the entire life cycle.

We’re proud of our 20-year relationship with Blancco. Together we are making the Circular Economy ‘real’ by delivering tangible benefits for customers and society. Our combined win/win proposition is a testament to the efforts we have made this together, to help businesses embrace technology in a sustainable way while also achieving data protection best practices.

– Jason Skidmore, UK Managing Director

Coinciding with the rapid development of technology has been the proliferation of data. Organizations now have so much data that they’re having trouble managing and storing it all. At the same time, all companies must demonstrate customer data protection and comply with regulations regarding this data.

Blancco helps businesses improve their data hygiene, data security and data sanitization practices with secure, certified data erasure solutions across the entire data lifecycle—whether data is active or has reached end-of-life. In addition, Blancco’s tamper- proof audit trail that makes safeguarding data a simpler process.

Blancco is happy to be part of making the Circular Economy a reality. For two decades, we’ve been working with 3 Step IT to make responsible, secure IT asset recycling and resale possible. As technology continues to evolve, so will our partnership and our solutions.

– Richard Stiennon, CSO, Blancco

Together, 3 Step IT and Blannco’s solutions allow businesses to thrive in a Circular Economy. Get in touch to find out how you can make the Circular Economy work for your business.

  1. Do ask for a full breakdown of all the elements of any offering, including the actual interest rate, other fees and payments, plus extension rentals should you choose to keep the equipment beyond the primary term
  2. Do question potential providers about the returns process and the tools and support they offer to facilitate it
  3. Do ask for details about available asset management tools and how they are implemented
  4. Do ask about customer service: What kind of support does the lessor provide? Do they ensure that the asset management register (if available) is updated and assist you with returning assets by the agreed date? What kind of competencies and skills do the customer service staff have?
  5. Do think carefully about what you’re likely to do with equipment at the end of the primary lease
  6. Don’t make your decision based purely on the monthly charge figure
  7. Don’t be fooled by unrealistic residual values
  8. Don’t dismiss the potential challenges of tracking and managing leased assets, even in small numbers
  9. Don’t forget the value of freedom and flexibility, and that your needs can change quickly. Will you have any freedom in the future to choose exactly the devices you want? And what are the potential impacts on your business of a sudden change of brand or supplier on the lessors side?

Learn more about how we can help you acquire the assets you need, when you need them.

As ongoing digitalisation continues to transform our society, new technologies and tools will replace, even upend, traditional ways of working – from data management to customer service, communications and learning.

Businesses must keep up with the developments, however it is also vital for non-profit organisations to seize the possibilities new technology offers. When you are planning on acquiring new technology, it is always worth listening to expert advice. A useful way to assess your technology needs and acquisitions is to pose three questions: when, where and why?

But what is the most sensible way to acquire new technology? The sharing economy is on the rise. As a result, the traditional purchasing model has been challenged and more and more organisations are opting for access over ownership. The Device as a Service trend is emerging in the corporate as well as in the public sectors. Many organisations are moving away from purchasing and towards leasing IT devices and other movables.

Comparing finance offers – What to consider?

Leasing technology starts from requesting financing offers from different providers and comparing them. The key is to ensure that the offers you have received are comparable. As well as conducting a financial analysis, it is also important to assess how the service provider carries out their service. For example:

1. What exactly does the monthly fee in the financing offer include?
2. What kind of assumed residual value is applied to the offer?
3. What kind of tools does the provider offer for control during usage?
4. What kind of tools or services does the provider offer for the end of the lease period?
5. How do you return the equipment – cost and process?
6. How does the lessor ensure secure disposal of data for the returned devices and how is the data sanitisation carried out?

At 3 Step IT, we have 20 years of experience in offering IT equipment as a service responsibly. As well as superior customer service, we offer our clients financing with best-practice yearly limits and a highly advanced asset register with comprehensive reporting functions for IT and Finance. To learn more, contact us today.