Case Studies
At Zeal, our depth and experience in the field of technology investments have allowed us to offer some unique solutions to clients enabling them to supercharge their technology implementations.
Upgrade to Success: Deferred Lease
Scenario
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Client has aged end user compute
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Would like to upgrade to new fleet
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Looking at refreshing entire fleet in one shot
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Client does not currently finance their PCs
Challenges
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Budget is limited for competing projects
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IT is on board, but finance does not want to spend the money
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Need to help their IT team with a compelling case for upgrade
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Aged assets is resulting in more helpdesk calls, employee downtime
Solution
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Evaluate the monetary value of the assets that are going to be retired
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Craft a payment stream that is going to minimise cash out from their business​
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Source the funder and negotiate with them to approve this unique funding model
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Present this to their finance manager along with the IT team
Get the Assets You Need: Hybrid Rental Solutions that Let You Own
Scenario
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Client is looking to refresh their end user compute fleet, and associated peripheral devices
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Identified a 3 year lifecycle for the PC’s
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Client also requires monitors, but plans to keep them beyond 3 years
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Currently purchase their assets outright
Challenges
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Don’t want to pay cash for monitors and lease for PCs (confusing from a finance perspective)
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Finance leaning towards paying cash for total solution (they have the funds)
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IT not happy about business paying cash, as this means they will likely sweat the PCs with the monitors too
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Don’t want to have to return the monitors after 3 years as they have a longer life
Solution
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Implement a contract that is a hybrid rental model
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Allow for certain assets to be kept at the end of the term, and certain assets to be returned
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Single monthly payment that encapsulates the use of the laptops and monitors, however the monitors can be retained at the end of the contract period
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Leverage against the equity in the assets that are to be returned to solution an economical payment stream
Rewind the Clock on Sunk Capital: Injecting Cash Back into Your Budget with Rentals
Scenario
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Client has explored interest in moving towards a rental model for end user compute assets
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Would like to just have all new assets purchased moving forward as a rental
Challenges
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Has refreshed a large portion of the fleet in the prior 6 months
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Not many more assets being purchased, so the chance to transform to OPEX moving forward will be quite a while away
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Sank a lot of capital into the latest refresh, so technology budget is now depleted for any major projects for the foreseeable future unless critical
Solution
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Review invoices of the assets recently purchased
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Explored feasibility of transforming the capital purchase into future rental payments
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Cost analysis and negotiate with funders to come up with the payment stream
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Inject the spent capital back into the companies budget
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Client moves forward with a rental model and monthly payments implemented for a historical capital purchase
Software Lend
Scenario
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Client needed to renew software licenses for their staff for the next 3 years
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The bank gave them the credit but at a high-interest rate due to the unsecured nature of the loan
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Client was considering changing to 1 Year Subscription
Challenge
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The bank line of credit would also take 1 for credit approval
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Bank required directors' guarantees
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Changing to a 1-year subscription will cost more due to the shorter contract
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Exposure to forex and inflationary pressures.
Solution
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Zeal secured funding for the full 3 year licensing period at a comptetive rate
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No directors guarantees required
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Creating certainty in an uncertain world.