Every business and CFO wants to keep up with new trends in technology. Not only does state-of-the-art technology keep your company relevant and competitive, but it also can improve brand loyalty, increase the efficiency of operations, and decrease overall costs. If you prefer paying monthly rather than upfront, here are five things to consider when financing technology for your business.
- Ease of Process
You’re a busy CFO or leader of your business, and you have many problems to address regularly. The last thing you want is a long, complicated process to apply for and obtain financing. Once you decide on a particular technology, you want to implement the upgrades as soon as possible, right? It is crucial to find a solution that will streamline the process of financing. What you need to be looking for is a company that makes the process as easy as possible. Online applications, advisors that listen to your needs, and tools that provide quotes quickly are the place to start. You can begin benefiting from new software or hardware as soon as possible simply by looking for these qualities.
Companies have tight budgets. Some technology financing options only address the sticker price of technology. The extra costs associated with implementation, updates, and maintenance can come as a shock to you – and your budget – down the road. Finding a company to ensure that you know the project’s total cost before agreeing on financing will show trustworthiness. Trust is a fundamental key to your financing decision.
- Duration of Financing
It’s time to replace your equipment – but you still have a substantial chunk of your lease to pay off. It’s important to know whether your financing duration matches the useful life of your hardware or software (this is called “coterminous”). For example, if the new software upgrade you are looking at has a three-year commitment, ensure that the financing matches this term.
- Type of Financing
Financing hardware can differ significantly from financing software and services. A lease may be the best solution if you plan to upgrade your new equipment at the end of the term. Keep in mind that hardware can serve as collateral when financing, giving you flexibility and more aggressive terms on your lease. There is no physical collateral when financing software and services, so capital financing options are typically the best option. Ensure you choose the right type of financing for the type of technology you are buying.
- Potential for Upgrades
Once your lease term ends, do you have options? You may want to keep your equipment as it is, replace it with something else, or renew the lease contract. One thing is sure – you want to have the flexibility in your agreement to maintain the status quo and upgrade as needed. The right financing company will show you the best possibilities based on what you are looking to accomplish.
Need Solutions to Fit Technology in Your Company’s Budget? Discuss Your Options with Blue Street Capital
At Blue Street Capital, we help CFOs do everything that we have discussed above. If you would like more information about our services, please fill out our online contact form, and someone will be in touch shortly!