Byte Sized Tips On Financing Technology For Your Canadian Computer ‘ IT ‘ Leasing Needs !

Financing technology. Is it as complicated or even risky as it might seem when it comes to your Canadian computer, IT, and leasing needs for survival and growth. Perhaps we have been doing it too long, but we don’t think so – lets cover off some key basics.

We’ve often spoken about a killer concept, the idea of what is your ‘ obstacle to innovation ‘. Unfortunately many times it’s price and cost, and financing those tech needs provides a solution to the elimination of the barrier. If you know how, and why, and… when!

In a recent Canadian Federation of Business (CFIB) poll over 63% of all small and medium sized business owners indicated that both price and costs were what limited their access to the technology and computer IT needs they had. Unless we’re missing something that’s a majority.

Naturally most business owners and financial managers also referenced that they needed to be able to achieve a solid return on those investments. Information technology (‘IT) allows you to do that, and even gives you certain measures of flexibility you didn’t think you had.

That flexibility, along with the benefits of using new tech solutions allows you stay competitive, as well as save you time and money, two precious business resources.

Financing your IT needs allows you to do the basics, ie run your office, manage your financials… in effect, and run your business.

When choosing new tech assets focus on over what time period you will receive a payback. At that point it’s when lease financing emerges as solid acquisition tool because it allows you to spend cash as you are in fact receiving those benefits over the term of the useful life of the asset.

Software, and software licensing is a huge part of lease financing in Canada. We are often surprised when many business owners don’t even know that application software can be financed – It surely can! Although software is viewed as a soft cost, i.e. not a hard asset it still has a significant value to you the use, including of course the right to use the software under license from its owner .

The documentation around financing technology is critical. Long term relationships are more well served under a Master Lease concept – simply speaking you sign one lease with terms and conditions you are comfortable with and then add on as you replace or delete assets .

Capital vs. operating lease choices are critical in Canadian computer IT leasing. It’s all about owning and using respectively. Operating leases can provide fabulous flexibility when it comes to using for a shorter period, upgrading, buying out early, etc

Maintain a competitive edge by considering financing technology needs. The larger corporations, even banks do it all day, every day. So should your firm. Speak to a trusted, credible and experienced Canadian business financing advisor on how to achieve the right balance of cash outflows and return on investment in computers and IT.