An Equipment Financing Trend: Managed Services and Fee-Per-Use Agreements
Managed Services and Fee-Per-Use Agreements: A New Equipment Financing Product Trend
Although not a traditional financing contract arrangement, equipment provided by a product vendor in connection with what are referred to as managed services agreements and fee-per-use agreements is a relatively recent offering trend. These agreement forms enable a product vendor to build in extra profit items, offer expanded services, and are typically favorably viewed by vendor customers. There are, however, financing challenges in using these types of agreements, as discussed next.
The Concept and Structure of a Managed Services Agreement
A managed services agreement generally ...
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