TMW Systems, Inc., Beachwood, OH, has established a leasing program for its software products. The company said this is in response to the fuel crisis, which has put operating software beyond the reach of many carriers.
Because software is simply a license to use a product, many traditional lenders have not offered financing. Fleets who use the TMW leasing program could benefit from a finance rate of .5 percent below prime and no cash outlay for six months. That offers fleets a long head start on ROI (Return On Investment). Leasing can also offer substantial tax benefits over purchase.
TMW's leasing plans depend on the product being acquired, its technological life cycle, and any added product needs. Carriers can finance software, services, prepaid maintenance, computer hardware, and high technology equipment. Payment options include operating and/or capital leases, lease terms from 12 to 60 months, deferred billing plans, interest-only billing and graduated lease payments, and purchase order payment plans.
Kinetic Computer Co., Billerica, MA, offered leasing with the recent introduction of its new eTruck fleet communications and operations systems. TMW is the first of the major trucking software company to offer a leasing option.
Leasing is likely to become a popular for many high tech products, particularly in the truckload sector where profit margins tend to be slim.