Acquire New Technology on Your Terms
Frequently organizations adopt a “make-do” attitude when it comes to technology, primarily because the acquisition of new technology is often expensive and time-consuming to implement. Add to that the potential complexity of integration to legacy systems, hardware and software upgrades, and an increase to capital expenditures, and many organizations feel it is necessary to maintain rather than upgrade. Until…
A multitude of events can create demand for new and upgraded IT resources, including:
- You’ve landed that big fish – acquiring a new major client that requires certain amounts of integration to your systems or you simply need to improve performance.
- An acquisition may be in the works – whether you are looking to expand via acquisition; be acquired or merge with another company, having up-to-date IT assets will help ease the transition.
- The company is ready to grow – perhaps the organization has reached a milestone and is ready to expand, either to new markets or geographic areas. The need for a solid IT infrastructure to accommodate expansion is incredibly important.
- An existing IT vendor folds – it’s sad, but can happen. Now, you have technology without support and are in need of a rapid change in order to ensure your organization is not adversely affected.
You may find that you need to act quickly, and need to do something that does not negatively impact your budget. Where do you turn?
Your Technology Funding Source
Traditional sources are not always the most effective means to fund your IT needs. You need a source that is responsive and understands the nuances of acquiring new technology.
“At NEC Financial Services, we start with a transaction team and use underwriting and financing contracts that are customizable to the client needs,” said Herschel Salan, vice president, NEC Financial Services. “Our unique system enables us to use experienced people, coupled with 30 years of knowledge, to create a better solution that ensures our clients have what they require to grow their businesses.”
The NEC Financial Services team offers several options for the financing and leasing of technology acquisitions, and yet the approach can be very different than you will find at a more traditional lender or bank. For example:
- Programs based on customer requirements – most organizations face the same business challenges that are not easily resolved with standard finance transactions. NEC Financial Services provides different types of programs based on customer requirements. From a purchase to own arrangement to an OPEX finance option, the program is designed to fit the business need.
- Off Balance Sheet – many organizations find it more attractive to acquire technology as an operational expense, giving them additional financial benefits.
- Driven by cash flow – if an organization has a specific budget amount they need to meet, NEC Financial Services will work to structure financing to accommodate that number.
- Our job would be to align the budget expense to the cost of that technology over time. For example, with a $10K budget a month – the goal would be to get that number to $10K or less.
- Beyond the traditional – NEC Financial Services designs financing options to ensure that clients can receive funding for their technology upgrades and investments, even during the installation or implementation phases. . Many times this can be accomplished through various offerings that include direct and working capital loans or structured financing.
“Our team becomes very involved with our clients to understand the technology, how it will have a positive impact on their business and how to best fund it for success,” said Salan. “Whether it’s progress loan financing in the early stages of a longer term transaction, or even multiple vendors and multiple technology types, we structure our financing to meet the business needs.”
More Than a Banker
“Our goal is to have long-term relationships with our clients where we support their ongoing business growth,” continued Salan. “We ensure that we understand their business requirements and growth strategies so we can structure finance options to meet their needs and successfully implement their plans.”
In addition to the financing options, NEC Financial Services also provides asset tracking.
“We find that many of our clients require a more robust asset tracking system than they have in-house, so we provide that service,” said Salan. “We can track assets by jurisdiction, county, state, and zip code, taking the burden from our clients while providing added value.”
Salan also said that many clients have a need for protection against technology obsolescence. This is one of the drivers for determining the right finance solution and term.
“While the length of a typical technology lease is between three and five years, we create terms based on the customer’s decision,” said Salan. “For those that obsolescence is a real issue, we can structure shorter terms so they can keep up with important technology updates to grow their businesses.”
Salan and his team work through the whole corporate lifecycle, ensuring that the technology will grow to meet current and future needs.
“It’s an advantage to our clients that we are agile and have business growth at the core of our decisions,” said Salan. “We understand how technology can help a business grow and reach the next level, so we are eager to explore those options with our clients.”
To learn how NEC Financial Services can provide technology financing on your terms, contact Connecticut Communications today!