Itochu introduces its rent to buy option for test and inspection equipment at Nepcon 2007

Citation

(2007), "Itochu introduces its rent to buy option for test and inspection equipment at Nepcon 2007", Circuit World, Vol. 33 No. 2. https://doi.org/10.1108/cw.2007.21733bab.007

Itochu introduces its rent to buy option for test and inspection equipment at Nepcon 2007

Itochu introduces its rent to buy option for test and inspection equipment at Nepcon 2007

Recognising the fact that many companies, whether recently- or well- established, view investment in new or different technology with some trepidation, Itochu UK is making available a “soft landing” alternative for their test and inspection equipment. The company will introduce Nepcon visitors to the new option at stand G44 (Figure 2).

Figure 2 Exception EMS Itochu test equipment

By opting for the “rent to buy” alternative to outright purchase, the customer commits to a relatively low monthly or quarterly rental, enabling them to both get up to speed with the system and to begin generating income without the high initial capital outlay. It is then up to the customer to decide when to make the purchase and the rental fees paid will be, in part, taken into account when the balance figure is calculated.

As Graham South of Itochu UK points out “There are a number of other benefits accruing from our approach. The customer can acquire equipment when they need it and not when the capital budget dictates. Furthermore, paying a fixed cost each month out of future revenues results in easy budgeting and acts as an inflation hedge, whilst leaving existing capital and credit lines intact to continue developing the business. The lease rental is 100 per cent tax allowable, providing a tax efficient way to acquire equipment”.

This soft landing approach was successfully used recently by Exception EMS when they were looking at investment in their third Takaya flying probe test system. Their new APT9411 system was acquired for Exception EMS' Fastrack service using this facility.

For details and to discuss the cost benefits of such an approach, visit the Itochu stand at Nepcon, Stand G44.