When your company chooses to finance hardware, you get access to products that you can use as if they are your own without burdening your company’s own capital. Instead, the cost is spread over several years, usually 24-36 months, so your company has manageable and safe monthly costs and capital left in the company. In order to finance hardware, a credit check on the company is required, this is carried out on each individual agreement which is based on the total value to be financed that your company's autorized signatory has to sign. If you have a frame agreement set up with your financial partner the credit check is not conducted for each separate purchase.
All financed hardware needs to be insured, this is a requirement from the financing partner as they own the hardware. Read more in the article about insurance for financed products.
Financing for hardware with residual value
Financed products such as computers, tablets, mobile phones and certain other equipment classified as "productivity equipment" have a residual value at the end of the financing period. The products should be returned to the financing company after the end of the leasing period, return packaging will be sent to your company to return the products. Alternatively, you agree with the financing partner that you buy the hardware at the end of the lease.
Financing for other products
Other products, such as headphones, smartwatches and more, normally have no residual value calculated into their pricing. These products are instead paid for in full during the financing period and should therefore not be returned when the financing period ends. They belong to the beneficiary – that is, your company.
In Velory you have the opportunity to choose which contract duration for financing you wish to have available for your company and employees. The most common is 24 and 36 months, but there are also shorter and longer periods. The cost of financing can vary in relation to how long the financing period is.
Upon termination of contract
You will be reminded about the end of lease date through Velory and your company will be contacted by the financing partner at the end of the financing period, for you to decide how you want to proceed with the financed products. As an admin in Velory, you receive a summary of emails every month on the devices that have contracts that expire in the next month, and you can also easily see the status of a device's contract in Velory.
Early termination of contract
It is up to your company to decide on the premise for early termination since there are a few factors to have in mind. You can read more about this in our article about terminating a financial agreement prematurely.