CUSTOM SOFTWARE FUNDING
Logic-Sphere is also a software lease lender. We approve our own accounts based on the merits of your business plan, not necessarily your credit rating. Not having to pay for software up front gives you significant advantages over your competitors. Your business is far more attractive to buyers and financiers. You will reserve your cash flow for expenditures that are important for your growth.
Leasing custom software with no down payment enables you to use our products and services to test-market ideas and develop your business through trial and error. This is the most cost effective way to engineer profit and is only possible with Logic-Sphere's v.stat (feedback) modules bird dogging the way. The method is so fast you could earn substantial income before the 2nd payment is due.
You can choose a straight finance lease, a maintenance lease (which includes updates, upgrades, and support) or you can obtain a master lease so you can add on software and services as called for by your business's growth. Our leases have fair amortization and can be transferred if you sell out.
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Reinvented companies can use our software funding to eliminate old-school fixed costs and overhead, attract new and bigger markets, and empower their workforce to produce more income for themselves and the company, thereby creating their own market advantage.
Our software leases are fair. The structure is actuarial (level-yield - like a simple-interest loan) and there is no penalty for early termination. Our leases are assignable by us and can be assumed by a third party - in case you sell your business. This is a true lease by IRS definition so the best tax write off is available. Logic-Sphere is the only development firm in the United States offering true lease-to-own contracts on its products.
When there is a lack of cash for new software, acquirements are often put on hold, stifling the progress of the company. The only people who benefit are your competitors who have a technological advantage. Even if your budget allows for cash purchase of all of your custom software, in most cases there are several sound reasons to lease it:
- The value of having/using the software provided by leasing is exactly the same as paying cash or by taking out a commercial loan.
- Custom software is a depreciating asset in the eyes of the law so it is financially unwise to own it. Your cash should be invested in your business or another appreciating asset so your revenue grows with it.
- Since the Sarbanes-Oxley Act of 2002, IP no longer shows as an asset line-item in the financial statements, but any payments for intellectual property do show as an expenditure.
- A software lease shows as a contingent monthly liability with no ill-effect on the financial statement.
- Simultaneously, the cash you would have spent for custom software shows as an asset line item.
- Keeping software purchases off the balance sheet shows sound business judgment to partners, shareholders, and investors.
- If the company's earning rate (ROI), or cost of funds, is in excess of 6.35% APR, leasing depreciating assets like software costs less than paying cash for them.
Logic-Sphere includes a case study showing the exact savings and earnings afforded by leasing with every proposal. Our software lease funding allows an entreprenuer to test founding ideas at a profit... then use that first profit to pay for the development of it's final software version. Of course, the decision is yours.
Contact Kim for more information about funding after you consult with Sath about the cost of the software.
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