01 May 2009 - With traditional sources of bank finance drying up and companies reluctant to commit large amounts of capital expenditure the manufacturers of products and services may offer a viable alternative.
Manufacturers of IT hardware and software such as Microsoft and Dell can now offer the ability to finance an IT purchase in a single cost effective financing solution.
Unlike traditional financing their solutions can cover 100 per cent of the supply of their products and services as well as any other third-party services and hardware.
Benefits
- Paying over 1,2 or 3 years preserves much needed cash flow whilst also still receiving the on-going investment into the business to drive the growth.
- Investing in current technology may also reduce the cost of out-dated (or out of warranty/maufacturer support) hardware and software that may be affecting users productivity if it is not constantly available to use by the users if it is failing and awaiting repair.
- Hardware, software, support and maintenace can be combined into a single monthly payment
- There are tax advantages as most leases can be constructed so that spending is treated as a business expense rather than capital expenditure.
How it works
In order to get approval, the following details are required:
- Deal content must contain the manufacturers products or services
- Minimum 2 years in business
- Latest full accounts (Minimum of 2 fiscal years)
- Accounts should not be overdue for filing
Once these details are provided a review regarding the financial strength, deal content, term and profile of the customer then seeking the finance then takes place.
Please contact us for a specific quotation or to discuss your requirements further.
Further information
Finance and Leasing Association: Guide to Asset Finance
Business Link: Information on Capital Allowances
IBM Global Financing: General Introduction into Leasing Options