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Many ICT vendors hardly mention financing
when discussing deals – if at all. The option to
finance a deal is brought up regularly in around 30
per cent of ICT purchasing negotiations, while in
15 per cent of conversations it’s never brought up
at all. The conclusion has to be that ICT financing
does not seem to be top of mind for many SMBs.
However, the research presented in this report
indicates that current procurement processes tend
to be ad hoc, and Quocirca believes that this leads
to problems with support and maintenance of
existing ICT platforms.
Furthermore, the lack of a capability to manage
ICT projects with a longer-term view means that
many SMBs will be faced with technology platforms
that are being dealt with on a tactical basis. This will
result in decisions being made that are only suitable
for the short term, negating any real benefit an SMB
can get from their ICT expenditure. Having access
to larger sums of direct finance should mean that
more strategic decisions can be made – ones which
do not just keep the business going, but enable it to
compete more effectively and to thrive and grow
against its competitors.
However, the use of ICT financing should
not be regarded as just a means of raising the
money to fund a specific need.With a structured
financed-based technology roadmap in place,
an SMB’s IT function can be made far more
strategic, allowing the business to create and run
a longer-term coherent platform that will better
facilitate the business’ needs and enable greater
competitiveness.
ICT financing is different to sourcing and using
a bank loan. Technology finance companies are
focused on the needs of the business at the ICT
level, whereas a standard bank loan or overdraft is
viewed purely as a cash transaction between the
bank and the business.
By using a finance company that has broad
capabilities, it should be possible to combine the
budgets for IT, telephony and office equipment
to maximise the positive impact that can be
obtained through the use of financing. In a world
where there is strong convergence across these
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three areas, being able to consolidate budgets and
aggregate them over a longer period of time will
allow for more strategic decisions to be made on
how the organisation moves forward in its use of
newer systems.
Benoît Dilly, UK Country Manager at BNP
Paribas Leasing Solutions, believes the findings of
the Quocirca research reveal a real opportunity
for SMBs to maximise their ICT budgets: “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. BNP Paribas Leasing Solutions is ideally
placed to help resellers lead their discussions with
financing, in order to make more strategic ICT sales
to SMBs. In 2012, we supported nearly 40,000 UK
businesses across all sectors invest in £1.1 billion
of capital equipment, to help them progress their
strategic goals. By working with us, resellers have
an excellent opportunity to shift SMBs’ ad-hoc
ICT purchasing practices towards more mutually
beneficial, strategic business relationships.”
Within BNP Paribas, BNP Paribas Leasing
Solutions is specialised in leasing and rental
solutions for professional equipment, offered either
directly to businesses and professionals or through
its partners – manufacturers, publishers and their
distribution channels (dealers and resellers).
With more than
€
29.3 billion of capital under
management and 3,600 employees located
worldwide, BNP Paribas Leasing Solutions is the
European leader in equipment leasing and is the
only financial institution with such a wide-ranging
offer, extending from simple leasing arrangements
to long term rental solutions and IT asset
management contracts.
For more information Chris Cowell, Sales
Director for the Office Equipment division
at BNP Paribas Leasings Solutions can be
contacted at [email protected]
or call him on 07966 114245
be top of mind for many SMBs. However, the research presented in this report indicates that current
procurement processes tend to be ad hoc, and Quocirca believes that this leads to problems with support
and maintenance of existing ICT platforms.
Barriers to the adoption of ICT financing
Furthermore, the lack of a capability to manage ICT projects with a longer-term view means that many
SMBs will be faced with technology platforms that are being dealt with on a tactical basis. This will
result in decisions being made that are only suitable for the short term, negating any real benefit an SMB
can get from their ICT exp nditure. Having access t larger sums of direct finance should mean that more
0%
10%
20%
30%
40%
50%
60%
We’ve tried it in the past, but had a bad
experience
It all appears too complicated
Culturally, we’ve always bought IT equipment
and don’t see a need to change
We like to own and be in control of all our IT
systems given its strategic nature
We don’t need it – we have enough cash to
cover IT purchases
Unaware of what IT financing options are
available
Unaware of the benefits of IT finance in
comparison to a cash purchase or bank credit
Barriers to the adoption
of ICT financing