YOUR COMPANY IS LOOKING FOR ‘INFORMATION TECHNOLOGY ‘ FINANCING!
EQUIPMENT AND 'IT' TECHNOLOGY FINANCIAL SERVICES FOR BUSINESS
You've arrived at the right address! Welcome to 7 Park Avenue Financial
Financing & Cash flow are the biggest issues facing business today
ARE YOU UNAWARE OR DISSATISFIED WITH YOUR CURRENT BUSINESS FINANCING OPTIONS?
CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs
EMAIL - sprokop@7parkavenuefinancial.com
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Oakville, Ontario
L6J 7J8
Strategic IT Investment: A Business Owner's Blueprint
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer Computer System and Technology Financing and working capital solutions – Save time, and focus on profits and business opportunities
7 Park Avenue Financial: “Canadian Business Financing with the intelligent use of experience”
Financing Computer Systems & Technology Needs For Your Company
Financing information technology becomes much easier when the business owner/financing manager or information tech manager understands key issues and financing options.
Some areas of financing lend themselves perfectly to computer finance/ software financing, while others… well, let’s just say, not so well!
Knowing the differences can make or break your tech budgets, and hopefully not your career!
Technology's advantages to delivering your products and services are key these days. Paying through financing options allows customers to manage their purchases by making smaller, more affordable monthly payments, contrasting this approach with traditional credit card payments.
I T loans and information technology business financing .. Let’s dig in!
THE HIDDEN COST OF YOUR OUTDATED TECHNOLOGY - FIND OUT WHY SMART FINANCING MATTERS
Having outdated technology can drain business resources, including efficiency and maintenance costs. Your competitors leverage modern technology. Let the 7 Park Avenue Financial team show you how IT infrastructure can be funded while maintaining capital reserves and cash flows.
3 Uncommon Takes:
- Financing computer systems can actually improve your credit rating when structured correctly, creating a positive cycle for future business funding
- Strategic IT financing can be used as a tax-efficient succession planning tool for family businesses
- Computer system financing agreements can include cybersecurity insurance bundling, reducing overall business risk
WHAT IS INFORMATION TECHNOLOGY FINANCING
Information technology financing, also known as ' I T ' financing, allows companies to obtain capital needed to run and grow companies based on their computer hardware and software and related services needs.
I T solutions for small businesses can be a huge drain on business capital.
THE DEMANDS TO ACQUIRE TECHNOLOGY ARE CONSTANT FOR CANADIAN BUSINESS
While no industry moves more quickly than tech, it surprises us sometimes and moves even faster, as the role of financing information and financial data is so key to being competitive.
Just when you thought you knew all your options in hardware and software selection and financing, along comes things like ' Cloud Computing '. (Real-time computing over a network with scalable virtual servers and software from a remote location)
Top experts in information technology tell us that fintech companies in the United States and Canada are massive users of technology.
' Fintech' is the ability of companies to integrate software into financial service offerings to effectively use and deliver service offerings.
Fintech has disrupted traditional information delivery in many segments, including offerings in wealth management, commercial and consumer lending, insurance, etc.
EQUIPMENT LEASING IS ONE METHOD OF SCALABILITY AND CHANGE IN YOUR TECH ASSETS
That whole issue of scalability, i.e. computing power when you need it and financing for that, has always been an issue.
Traditionally, it’s been handled quite well, thank you, by using equipment lease financing to address the constant change in hardware and software needs and the actual evolution of those products and services in new versions, etc.
Additionally, consumers can consider trade-in options when upgrading their devices, which may help them save on sales tax while also receiving credit toward their new purchase.
BUSINESS OWNERS CAN UTILIZE ‘LEASE TO OWN’ OR ‘LEASE TO USE’ STRATEGIES
Business owners can use flexible financing options to acquire the necessary technology to grow their businesses.
Two popular strategies are “lease to own” and “lease to use.” Lease to own allows businesses to lease equipment for a set period, with the option to purchase the equipment at the end of the lease.
This method can benefit businesses looking to eventually own their technology assets without a large upfront investment.
On the other hand, lease-to-use provides businesses with the use of equipment for a set period without the option to purchase. This strategy is ideal for companies that need the latest technology but want to avoid the long-term commitment of ownership.
Both options can help businesses conserve cash flow and reduce upfront costs, making it easier to manage their finances while staying up-to-date with the latest technology.
BUSINESS OWNERS CAN UTILIZE 'LEASE TO OWN' OR 'LEASE TO USE' STRATEGIES WITH MONTHLY PAYMENTS
Typically, owners would choose a ' capital ' or ‘operating’ lease to match their ownership needs. The danger with a capital lease not arranged well is that it locks the business owner/CIO into a long-term arrangement that often very quickly needs upgrading.
So, penalties for breaking the lease were often expensive in the context of the total cost of ownership, as companies found themselves locked into hardware and software that needed upgrading.
WHY AN OPERATING LEASE FOR TECHNOLOGY
Good financial analysis tools will help you understand most acquisition needs in acquiring hardware and software for your company.
Enter the ‘Operating lease’, which allowed thousands of large and small firms to enter into computer leases that seemed to make a lot more sense.
Why? Simply because they gave the company the option to buy, return, upgrade, or extend the current computer financing arrangement. That added flexibility to the owner/CIO's tech challenges.
Top industry experts tell us that today, the ' Accelerated pace of implementation ' is, in fact, accelerating!
CHOOSING A PAYMENT TERM
Businesses have several options to consider when choosing a payment method.
Financing options, such as lease to own or lease to use, can provide flexibility and help conserve cash flow. These methods allow businesses to spread out the cost of their technology investments over time, making it easier to manage their budgets.
MANAGING YOUR PAYMENTS
Managing payments is crucial to maintaining a healthy financial situation. Businesses should prioritize making timely payments to avoid late fees and interest charges.
Setting up automatic payments can help ensure payments are made on time, reducing the risk of missed payments and additional costs. Additionally, businesses should regularly review their payment schedules and adjust as needed to ensure they are on track to meet their financial goals.
By staying on top of their payment obligations, businesses can maintain good credit and avoid unnecessary financial stress.
FINANCING YOUR HARDWARE AND SOFTWARE NEEDS WITHIN BUDGETS AND CAPITAL CONSTRAINTS
Larger companies benefit from putting large budgets and people assets in place to do significant implementations.
The business owner in the SME sector is more challenged as they struggle to pick the right hardware and software and not eat into their cash flow and R&D budgets,
UTILIZE SR&ED FINANCING IN YOUR R&D CAPITAL PROJECTS
In the past, clients who used technology in their R&D and required computing power to perform that R&D could also claim those expenses as part of their SR&ED claim, which was also financeable when filed, by the way. Yet that part of the SRED program is, in fact, being phased out, again making technology financing more of a challenge for Canadian firms who wish to innovate.
BENEFITS OF COMPUTER FINANCING
Key Goals of Computer Financing Strategy:
- Lower overall technology acquisition costs
- Streamline and manage cash outflow effectively
- Preserve valuable working capital for other business needs
- Maximize business benefits from technology solutions
Benefits for Business Decision-Making:
- Enhanced ability to produce accurate financial reports
- Improved management of financial transactions
- Strengthened competitive positioning
- Better operational efficiency
- More strategic allocation of resources
So having finance flexibility is key, and computer lease financing for hardware and software requirements still makes total sense. (When you have the right lease and lease company in place!)...
APPLICATION PROCESS FOR COMPUTER FINANCING
EVEN CANADIAN BANKS UTILIZE LEASE FINANCING FOR COMPUTERS AND SOFTWARE
Can we provide a good example of why computer leasing works and is used? You knew we could! Although probably not widely known, all Canada’s banks lease computers and software.
What?!! Yes, it's true. So we have banks that only lend and guard our money, actually borrowing money to finance their tech infrastructure.
Why would financial institutions such as banks borrow money and incur interest, finance costs, and lease obligations when, in fact, they appear to have all the money in the world?
The answer is what we have shared all along here, namely that it's not about the capital cost in an ever-changing technology world, it's about the flexibility to make changes in your tech assets such as hardware and software with maximum flexibility - allowing the banks ( or your firm ) to replace, upgrade, return, renew.
All the while allowing you to... yes... stop chasing change!
PAYMENT TERMS / METHODS
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Business owners can utilize “lease to own” or “lease to use” strategies to acquire technology while conserving cash flow.
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Choosing the right payment method is crucial to maintaining a healthy financial situation.
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Managing payments is essential to avoiding late fees and interest charges.
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Financing options are available for businesses with poor credit but may come with higher interest rates or fees.
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Promotional periods and payment options vary depending on the lender.
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Financing can be used for first-time purchases, and businesses can pay off their financing early but may be subject to prepayment penalties.
By understanding and leveraging these financing strategies, businesses can effectively manage their technology investments and maintain a solid financial position.
DID YOU KNOW?
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78% of businesses prefer financing over outright purchase of IT systems
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The average computer system financing term is 36-48 months
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65% of companies leverage technology financing for digital transformation
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92% of businesses report improved efficiency with financed tech upgrades
KEY TAKEAWAYS
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Understanding lease versus purchase options drives optimal financial decisions.
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Payment structure flexibility determines cash flow impact
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End-of-term options significantly affect the total cost of ownership
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Credit requirements shape approval probability
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Tax implications influence overall business benefits
CONCLUSION
Stop watching your competitors outperform you with better technology - learn how smart financing can put enterprise-grade computer systems within your reach today.
All kinds of technology and financial information solutions can be financed in today's world of tech -
That includes computers, servers, laptops, storage, phone systems and application software. It's important to know that almost every solution can be ' bundled' to include related services such as maintenance, licences, etc. It's no secret that the global IT market is trillions of dollars!
Major new trends have developed in recent years, most notably cloud-based information technology and computing.
This requires additional security software for small and large businesses alike. Every vendor continually introduces new generations of technology, straining the capital budgets of every company.
By using effective technology financing strategies, even smaller companies can compete more effectively in their industry/marketplace. The competitive demand to stay on top of change and fund your business's day-to-day requirements is intense.
Successful businesses know that working management is a crucial part of investing in new tech assets. The ability to upgrade assets and stay within capital budgets is at the top of every business owner/financial manager's mind.
Financing options allow your firm to stay one step ahead of the competition in marketing your products and services.
Most technology asset acquisition in business today revolves around a necessity, not a ' nice to have - so ensuring your firm is moving lockstep with your tech needs is essential.
Canadian business owners can't underestimate the importance of information technology in today's competitive environment.
Big data, Blockchain investments, and digital finance transformation in corporate finance are at the top of many information technology executives' minds.
Whether you are in the financial industry or virtually any segment of the Canadian economy, information technology is critical to every business in Canada today. Technology's benefits and technological innovation will always keep your firm moving forward.
Want to understand your technology financing options ?
Call 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor and finance consultant with a track record of success in computer financing and helping you make finance decisions and understand decision criteria. Let our team help you untangle financial pressures and technology.
FAQ
How does financing computer systems improve business cash flow?
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Preserves working capital for operations
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Creates predictable monthly expenses
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Allows for strategic cash allocation
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Maintains emergency funds
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Enables investment in growth opportunities
What tax advantages come with financing computer systems?
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Potential write-off of lease payments
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Depreciation benefits
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Interest deduction opportunities
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Cash flow optimization
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Reduced taxable income
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In some cases a promotional period might offer lower interest rates or a deferred payment option
How does technology financing affect business competitiveness?
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Enables immediate access to current technology
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Reduces obsolescence risk
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Improves operational efficiency
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Enhances customer service capabilities
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Strengthens market position
What's the difference between leasing and financing computer systems?
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Leasing offers lower monthly payments
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Financing builds equity ownership
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Different tax implications apply
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End-of-term options vary
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Approval criteria differ
How quickly can I get approved for computer system financing?
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Pre-approval often within 24 hours
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Full approval in 2-5 business days
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Faster with complete documentation
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Credit score impacts the timeline
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Existing relationships expedite process
What factors determine computer financing rates?
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Business credit history influences rates
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Time in business affects terms
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Revenue stability impacts pricing
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Industry risk factors matter
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Equipment type determines structure
What is the application process for financing?
The application process typically involves submitting financial information and undergoing a credit check. This helps lenders assess the business's ability to repay the financing.
How long does the credit check process take?
The credit check process typically takes a few minutes to a few hours, depending on the lender. This quick turnaround allows businesses to move forward with their financing plans promptly.
What are the payment options for financing?
Payment options vary depending on the lender, but standard options include:
• Monthly payments
• Quarterly payments
• Annual payments
• Businesses should choose the option that best fits their cash flow needs
Can I use financing for my first purchase?
Yes, many lenders offer financing options for first-time purchases. This can help businesses get the necessary technology without a large upfront investment.
Are there any fees associated with financing?
Yes, some lenders charge fees, such as:
• Origination fees
• Late payment fees
• Processing fees
• Annual maintenance fees
It's important to understand these fees before committing to a financing agreement.
