Enterprise

Windstream Communications has partnered with TAMCO to create Windstream Financial Services. TAMCO—a leading financial services company—focuses exclusively on acquisition solutions for the telecommunications and technology sectors. Together, we posses vast knowledge and experience in communications and finance. This not only gives Windstream Financial Services the ability to provide innovative customer-focused financing solutions, but also can help develop successful business approaches to meet the challenges in today’s marketplace.

Windstream offers several financial solutions including an innovative financing option that prevents you from finding yourself surrounded by obsolete technology. Windstream Shield financing offers our customers the flexibility to stay up-to-date with current technology while preserving capital. 

Ideal solution for:

• Protecting your company’s line of credit. Taking a loan from a lending institution will tap into your line of credit that you may need further down the road for something unanticipated.
• Keeping the purchase off your balance sheet. Under the FASB 13 rules, certain Windstream financing programs will qualify for off-balance sheet financing and provide some financial benefits to your organization.
• Possible tax benefits. Many of Windstream’s programs will provide you with tax benefits. Windstream Shield is treated as an operating expense and is fully tax-deductible.
• The time/value of money and the Rule of 72. Consider how spending your company’s capital on equipment today could actually cost you money by not getting a return. Instead, think about investing it on an appreciating asset.
• Protection against obsolescence. Windstream Shield is an innovative financing plan that ensures you will always have the latest technology.

Ask your Windstream Sales Representative how financing options can give your business the opportunity to acquire technologies you need now, not later.

Choosing an Acquisition Option: Cash vs. Financing

When businesses evaluate new technology, they often ask themselves the obvious question: What do I buy? But so often, they overlook an equally important question: How should I buy?

Truth be told, cash is always an option for purchasing your telecommunications products, but before you pay cash, here are a few things to consider:

• Buying may seem to make sense. After all, you then own your equipment, plain and simple. But what do you really own? Technology depreciates at an amazing rate. Do you want to use your capital to pay for a depreciating asset?   
• Ownership offers practically no benefit when it comes time for replacement. Although buying technology gives you ownership, it may not be the most economical means of acquisition.
• Consider how spending your company’s capital on depreciating equipment today could actually cost you money by not getting a return. The Rule of 72 states that if you invest or recycle your capital back into your business, you will not only see a return but also reveal the hidden benefit of financing. Here’s how it works: Simply take your corporate rate of return and divide it into 72. The answer is how long it will take to double your money. Therefore, assuming a 15 percent rate of return and dividing that into 72, you will double your money every 4.8 years.

Although buying technology gives you ownership, it may not be the most economical means of acquisition. Financing your telecommunications purchase gives you the benefit of keeping your capital free for investing in appreciating assets along with the flexibility to choose what to do with your equipment at the end of the financing term: keep it, return it, or replace it. 

Why Finance With Windstream Financial Services?

Taking a loan from a lending institution to pay for a new system is an option, but that will tap into your line of credit that you may need further down the road for something unanticipated. Furthermore, traditional bank loans can often require a higher down payment and the loan has to be capitalized which means it cannot be depreciated.

Windstream offers several financial solutions that allow customers to preserve capital, protect credit lines, and reduce the risk of technological obsolescence. Windstream also offers certain programs that qualify for off-balance sheet financing and might also provide significant tax benefits such as fully deductible payments. Windstream Financial Services takes pride in being one of the very few finance companies in the United States that can provide customers with a Total Solution.

Windstream Shield

Acquiring telecommunications equipment is a difficult decision. New technology is being introduced at a fast pace. It’s tough enough selecting a telecom system that meets your needs today, let alone anticipating what type of system you’ll need tomorrow. Windstream Shied is an innovative and unique financing program designed to prevent you from finding yourself surrounded by obsolete technology. Traditional financing methods are a viable option for some, but offers no flexibility if your technology needs change. Windstream Shield offers our customers flexibility and peace of mind by removing the risk of being stuck with out-of-date equipment or technology down the line.

With Windstream Shield, you choose the equipment that’s right for your business today. But should that equipment become obsolete for any reason—your business grows, your needs change, whatever—you can replace your system, no questions asked. Your contract will be forgiven and a new one will be issued—period—no balance to rollover and no hidden fees. The monthly cost of Windstream Shield is not necessarily for eventual ownership; it is simply a “right-to-use” fee. Windstream Financial Services absorbs all of the risk of ownership, not you.

Windstream Shield Features:

• You can move to a NEW telecommunications system with a NEW financial contract when your business needs change.
• All remaining payments on the old contract are forgiven when the new agreement is issued.
• “Cash” will not be tied up in a phone system—a depreciating asset. Instead, it can be used for investment in your business.
• In most cases, Windstream Shield qualifies for “off-balance-sheet financing” and might also provide significant tax benefits such as fully deductible payments.   
• Windstream assumes all of the risks associated with owning your telecom system—not you—and provides flexible end-of-term option.

Take the risk of uncertainty out of acquiring voice, data and video equipment with the protection benefits of Windstream Shield.

TRADITIONAL FINANCING OPTIONS

Windstream offers two traditional financing products that set up payments with different choices at the conclusion of the contract term: A Fair Market Value (FMV) lease; and $1 Out lease. Both are geared toward eventual ownership.

Fair Market Value (FMV) Financing

This is an operating lease, or “true lease,” which is a termed contract in which a customer makes monthly payments for a specified term without real intent to own the system. The operating lease usually qualifies for “off-balance-sheet” treatment, which means the payment is written off each month as an operating expense in pre-tax dollars. At the end of the term, the system can either be returned or purchased for a “Fair Market Value.” This value is somewhat difficult to predict and will fluctuate. FMV operating leases have many tax benefits and typically offer the lowest monthly payment.

$1 Out Financing

A capital lease, often known as a $1.00 Purchase Option Lease, is also a termed contract. Customers enter into this lease with the intention to own. Capital leases are sometimes referred to as conditional sales. From an accounting standpoint, this lease is treated as an asset on a company’s balance sheet, with tax benefits being taken in the form of depreciation. At the end of term, the lessee purchases the item that was leased for $1.

BusinessProtect Maintenance. Given the importance of your communications systems, it is essential to ensure they operate continuously at peak performance. This is precisely what Windstream’s BusinessProtect Maintenance services deliver. Windstream’s experienced service technicians can help resolve any critical system failures, 24 hours a day, seven days a week, 365 days a year.  

Voice CPE Systems. Windstream offers a wide variety of user-friendly communication platforms from some of the most respected names in the industry. Windstream provides business communications solutions with productivity enhancing applications for organizations that want to save money, stay connected to your customers, and keep a geographically-dispersed workforce connected.

Data CPE Systems. You need to focus on running your business–not wrestle with IT challenges. That’s why Windstream offers networking solutions–routers, switches, wireless access devices and security–that are simple to manage and offer the latest and greatest technologies, all to keep your business-critical applications running.

Products and Services. Windstream combines a set of services with enterprise-class infrastructure, technical resources, best practices and superior customer service to offer solutions that deliver.