Jun
13
2019

IT Financing Offers Purchasing and Upgrade Solutions

Numerous businesses will be reliant on the installation of an advanced Information Technology (IT) system in order to remain competitive in their market. Without access to the technology offered by a cutting edge IT system, a business might not be very limited in how it conducts operations. That would definitely present a roadblock when trying to succeed in a competitive market. Also troubling would be the fact an old, outdated IT system can present all manner of security risks.

So, why do so many businesses rely on older, less productive IT systems? The answer is the businesses simply cannot afford to upgrade. Based on current cash flow projections, the business must remain reliant on using the IT infrastructure it currently has in place. Or does it? For those businesses wishing to upgrade but are short on available funds, it is possible to explore options for IT financing.

Financing IT Equipment Is No Different Than Procuring Other Types of Loans

The way the financing agreement works is a business would apply to borrow funds from a service that specializes in long or short term funding for IT needs. The borrower may seek full or partial financing for a purchase and then make the monthly payments as specified in the financing agreement. Access to such lending capital ensures that IT needs never have to be ignored due to cash flow concerns and liquidity never has to placed at risk in order to purchase new equipment.

That said, this type of IT financing is only one method. There is another way it can be done.

IT Financing as a Line of Credit

A service that offers financing for Information Technology may also present an agreement that comes in the form of a line of credit. Basically, when the time comes when your business needs to purchase new IT equipment or technology, funds can be accessed through a pre-approved line of credit. In addition to employing the line of credit to cover equipment costs and purchases, the line of credit can be used to cover repair work, software upgrades and other IT needs. Best of all, a line of credit can be accessed at any time. So, when a business requires immediate financing, it can simply take advantage of its available credit line.

The Benefits of Working with an IT Financing Service

In addition to gaining access to funds and protecting cash flow, there are other benefits that can be gained from working with a reputable financing service. The service could offer flexible payment plans. This can allow a business to better budget itself when it is seeking to upgrade or replace its current IT technology. Down payments may not be required which further lessens the costs of procuring financing. For those businesses in need of it, it might be possible to be afforded off balance sheet financing.

IT financing definitely offers a solution to concerns over the costs associated with maintaining an IT infrastructure. All business reliant on a reliable IT system should definitely take note of what financing options are available.

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Jun
06
2019

Telecom Financing – Options For Funding Your Small Business

The telecommunications business is one of today’s most dynamic industries. With broadband technologies that are changing daily, new Internet voiceover protocols, complicated optical networks, and new wireless technologies, starting a telecom company is a challenge. So, too, is financing. Read on to find out how to overcome this challenge.

The telecommunications business is one of today’s most dynamic industries. With broadband technologies that are changing daily, new Internet voiceover protocols, complicated optical networks, and new wireless technologies, it is a challenging field to start a business in. Unfortunately, telecom financing can also be difficult.

The telecom industry has connected the industrialized world with instantaneous communication options. It is an extremely competitive field, with new companies breaking in constantly to meet consumer needs. For a number of reasons, it can be hard for these small businesses to get the funding they need.

Complexities of The Telecom Industry

The telecom industry is more complex than most, leaving small businesses with limited financing options. This complexity can scare off traditional lenders, whose experience is in lending to retailers and manufacturers with static technology. When it comes to telecommunications, these lenders tend to be considerably more cautious. These technologies change rapidly, which is risky for lenders. Without expertise in this area, they cannot determine whether your company’s business model is lucrative or not.

The Receivables Time Lag

Billing turnaround time for the telecom industry can take several weeks, which is a major stumbling block for lenders. This means that once services are offered, it can take a while to receive payment. It can be difficult for traditional lenders to understand this billing structure, rather than an instant exchange of receivables for services. So often they are reluctant to lend to these small companies. Without specialized knowledge about the telecommunications industry, these lenders are not likely to accept the risk and deal with the unfamiliar.

Where to Find Financing For a Small Telecommunications Business

Small telecoms must turn to experienced companies that specialize in this particular industry for financing. After all, you want a lender who understands what you do and how your finances work.

Using a telecom financing expert can be the best way to find a lender. They will research your business and goals to find a lender that suits your particular needs. Then they assist you in using your assets in the most beneficial way as collateral, which lenders require for financing. Telecom experts understand the value of a diverse range of technologies, as well as which are gaining value or depreciating. It is essential for your creditors to understand these issues.

Proper telecom financing is the only way to expand your company and offer your services to a growing customer base. While your options may initially seem limited, telecom financing is available for your business, no matter how small. Instead of wasting time and resources with traditional lenders who do not understand your industry, look for professionals in the field, who can help you find the funds you need from the right lender.

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