Gartner Research

Avoid the Risks and High Cost Penalties of Misaligned Leased Assets With Gartner's Financing Framework

Published: 27 February 2013

ID: G00246148

Analyst(s): Rob Schafer

Summary

IT finance and asset managers struggle to minimize the risks and costs of financing IT hardware while maintaining the flexibility business executives demand. Use Gartner's framework to synchronize the useful, financial and economic lives of your assets with the lowest risk financing option.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Establish a Clear Framework for Evaluating Financing Options
    • Useful Life
    • Financial Life
    • Economic Life
  • Synchronize Asset Lives to Minimize Future Financing Risk
  • Ensure Off-Balance-Sheet Operating Leases Qualify as Such
  • Expect to Modify Your Leases During Their Term and Negotiate¬†Accordingly
  • Beware the Likely Death of the Operating Lease

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