When you run a business, making the most of the latest technology available to you is vital for staying one step ahead of the competition. Read on to learn more about what technology finance is, how companies use it and some of the benefits of using technology finance:
What is technology finance?
Technology finance refers to a company borrowing money from a lender to buy technology for their organisation. Depending on the company’s needs, this can range from new computing equipment for office staff to boardroom equipment that helps to facilitate meetings. The company approaches the lender with a proposal and the amount it needs to borrow before the two parties come to an agreement regarding repayment duration and terms. Most technology finance agreements involve interest payments, so repaying in a timely manner is advised.
What are the benefits of technology finance?
There are several benefits of technology finance, including:
When they use finance to help source new technology, businesses usually have more options available to them – buying technology outright may mean they’re limited in terms of their budget, but the same restrictions don’t usually apply with finance.
Increased earning potential
When companies have the latest technology available, they’re able to tap in earning potential that didn’t previously exist. This is because employees work more efficiently when they have faster devices available, which speeds up design processes and allows them to handle more customer requests. Businesses have more potential to earn and grow, and they can use this growth to repay the outstanding balance on their finance payments.
Leasing is another option that can provide flexibility for your company. When you lease instead of finance, you’re simply paying to use the technology for a set period of time, rather than trying to buy it outright. This means you can return items you no longer need and even get upgrades when new tech becomes available. If you’re a company always looking to take advantage of new technology, leasing could be the best option for you.
Try Tower Leasing
We have expertise in technology finance solutions. Financing technology solutions over 30 years, we understand the market and can work with your sales team to create a compelling offering to your prospects and clients.
Our technology finance options include hardware leasing & finance, software leasing & finance, and managed service agreement. If you’re considering a technology upgrade and want to make your transformation more affordable, read more about our technology finance solutions. Or please get in touch to discuss how we can help.