For many businesses, investing capital to replace or purchase IT equipment is a challenging process. In today’s technological environment, having the right equipment and software can be crucial to the operational success of core business functions. Unfortunately, technology can often come with a large price tag. So rather than purchasing business equipment that is right for the business’ needs, businesses are settling for what can be afforded at that time.
The IT sector has shown tremendous change in the past year, with the White Clarke Group Survey showing that IT equipment finance has increased by a staggering 38% in comparison to the previous year (United Kingdom Asset & Auto Finance Country Survey 2016). With this apparent shift of customer buying behaviour and forecasts of growth in the IT sector to be well above average in 2016, it is imperative that IT and technology suppliers can offer their customers flexible finance and leasing options in order to remain competitive within this thriving market.
Many B2B equipment suppliers are already successfully offering finance options to their customer base. In fact, the Finance and Leasing Association reported that in 2015 almost 32% of UK investment in machinery, equipment and purchased software in the business sector and public services was funded using asset finance. This doesn’t come as a shock to us in the finance industry, as we have provided finance and lease options to over 66,000 British businesses.
So why is this the perfect time for IT suppliers to consider partnering with a leasing company? One word – demand. IT equipment finance is becoming an increasingly popular option and is forecast for above average growth. With technology constantly evolving, hardware and software can become obsolete within a matter of years. But leasing can allow businesses to stay up to date cost-effectively, as rental payments are softer on business cash flow than outright purchases and when the lease term is over they can upgrade their solutions to avoid becoming outdated. This results in a greater customer retention for suppliers, with end of lease customers often getting back in touch with their supplier to upgrade their systems.
Working with a finance provider offers many operational benefits to the supplier too. There is no cost involved in offering customers an alternative buying option. But more importantly, full payment can be made to the supplier within 24 hours of the customer confirming successful delivery and installation! This allows suppliers to reduce the risk of receiving late payments, which can have detrimental effects on cash flow and the health of their business.
For over 25 years, Shire Leasing has built a successful portfolio of relationships with large technology players, including household names such as BT, Toshiba, Ergo Computing and Ebuyer.com. Well experienced in IT asset finance, Shire are able to educate sales teams to fully understand leasing so that they can feel confident in offering alternative methods and maximise sales.
With innovation being a key value at Shire Leasing and IT equipment finance set for growth, Shire is the perfect match to help IT suppliers to remain competitive and increase sales using our finance facilities.
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