Businesses missing out on benefits of leasing
Businesses are not making the most of shrinking IT budgets by failing to explore different financing options, warns a new report by Quocirca.
Sponsored by BNP Paribas Leasing Solutions, Using ICT Financing for Strategic Gain reveals that many SMEs are unaware how financing works and prefer to spend cash on ICT purchases, with 81% using the internet for ad hoc purchases (as a primary or secondary source).
Half of respondents were unaware of the benefits of IT finance in comparison to a cash purchase or bank credit lines. Three quarters (76%) of respondents in firms with revenues of between £5 million to £50 million say they use car financing yet only 30% use financing for IT and telephony equipment. Just 1% use it for software.
Part of the problem, suggests Quocirca, is that the option to finance a deal is brought up regularly in only 30% of ICT purchasing negotiations, even though over half of respondents consider up-front costs to be of critical or high concern. Benoit Dilly, country manager at BNP Paribas Leasing Solutions, said: “Now is a great time for SMBs to procure ICT through financing. With budgets increasingly restricted, financing is the ideal way for
them to get the technology they need to achieve their goals and go for growth.” In 2012, BNP Paribas helped 40,000 UK businesses invest in £1.1 billion of capital equipment.
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