IT Finance and Technology Leasing. Whether you consider the acquisition of a computer system or other tech gear a cost or an investment it’s important to know your ‘ INTELLIGIENCE QUOTIENT ‘ ( IQ) on what for many firms is a very significant either ongoing or one time expense.
There has never been a time when a competitive edge often is aided by a tech investment your company makes or needs. In the language of the people it’s all about the ‘ bang for the back ‘, getting the most out of the minimum spend.
That’s where finance and leasing options around computer, software, and telecom type needs becomes a critical aspect of your overall decision. It’s all about benefits you can achieve from the flexibility of a (proper) finance solution.
Naturally the benefits of a tech investment arent just financial, as we noted they are both operational in nature and in some cases might be a key part of your overall competitive strategy.
Numerous North American stats suggest that the majority of IT Computer solutions end up with a financing package attached to them. That is either driven by the vendor or your own expertise in the matter.
So what are those key reasons that Canadian firms choose to finance their technology. One major one is simply the fact that technology today seems to be a moving target, and your firm is often concerned with the ability to acquire the newest and the best at the lowest cost. A real irony in the industry is that in many cases cost goes down and benefits go up, not visa versa.
Secondly, a prudent busines owner, IT manager, and of course the finance manager want to be able to match benefits achieved over the long term with cash outflows. Yesterday we got a call from a corporate treasurer who had just found out his operational staff had ordered a 1.6 Million dollar ‘ simulator ‘ and delivery was forthcoming. (We’re of course assuming the operational staff had the authority to order that much?!). The Treasurers’ challenge? How to finance and pay for the system !But our point is that based on a proper financial package of information that type of problem can be fixed in a matter of a couple of days via a lease financing approval .
Whether your firm is a medium sized or larger corporation it probably has a budget around the technology spend. Lease financing and proper structuring of a finance solution allows you to acquire and manage assets within that budget. For the SME business owner , whether there’s is a formal budget or not it always more often than not comes down to cash flow management .
In certain cases some firms certainly have the ability, or need to purchase technology outright. Proper use of any type of lease vs. buy analysis will usually guide the business owner, CIO, or manager to the right decsion.That when the investment should allow you to achieve competitive and operational efficiencies.