Keeping up to date with the latest computer and tech systems can be essential to stay up with the competition, continue to meet customer demands and expectations, and to protect the business with safe, secure systems. But the process of upgrading to new computers and entire operating systems with multiple inclusions – hardware, software, installation, can be complex, time-consuming, and expensive. Support to cover the costs is available with our affordable IT finance options. Providing an affordable means of updating tech, without using cash reserves.
Depending on the individual system or upgrade, there can be numerous components or items to purchase when updating computers, operating and safety systems, and business technology. Different types of credit facilities may be required to finance the different components, while some systems may be financed with a single, inclusive loan arrangement. Jade Equipment Finance provides IT finance options to cover all components and elements of an upgrade including the hardware, software and installation.
Hardware IT Finance
The hardware components of a tech upgrade such as desktops, laptops etc are considered business assets and can be financed with asset acquisition credit facilities. Business owners can choose the most suitable facility from Asset Lease, Rent-to-Own, Chattel Mortgage and Hire Purchase.
As business assets, the computer hardware is used as collateral for the loan, with many operators not needing to offer additional security. Tax deductions are available on all asset acquisition financing.
Software Finance Options
An upgrade may involve hardware only, software only, or both may be combined into the one system acquisition. The way the software is purchased determines how the cost can be financed. Where an entire system – hardware and software, is acquired from the same IT supplier and on the one invoice, our lenders may approve to entire purchase for asset acquisition financing such as Leasing.
But where the hardware and software are purchased separately, or where the upgrade involves software-only, asset acquisition financing may not be suitable. Key can be, if the software is considered a suitable asset for loan security. If so, then Leasing, Rent-to-Own, Chattel Mortgage or Hire Purchase may be used. Leasing can be very popular for financing goods that require regular replacement, such as software.
Where software is not considered an asset suitable for loan collateral, we provide a number of loan options. These include a Lender Overdraft or Secured and Unsecured Business Loans. Unsecured Business Loans and Overdrafts attract similar interest rates which are higher than secured loans but can provide flexible arrangements. Overdrafts can be paid down over a timeframe which suits cash flow. With unsecured loans there is no need to tie up other assets in finance arrangements.
Secured Business Loans attract a lower rate due to the secured nature. While the software may not be considered acceptable collateral, business owners may offer other assets as security against the financing. This option offers a fixed repayment schedule which we negotiate to best work with individual cash flow projections.
IT Finance Options for Systems Extras
Acquiring new technology can involve extra costs, in addition to the hardware and software. Security and surveillance systems, business-wide operating and accounting systems, and even integrating new desktops, can require professional services for the installation and set-up.
Depending on the size of the business and the IT purchase, this may involve an IT professional for a few hours, but with a large-scale installation and integration, the time and cost may be significant. As with software, costs of installation are not a business asset, but may be financed with overdrafts and business loans.
Where one supplier is engaged to supply and install the entire acquisition, we may be able to source a finance package to cover the entire cost. Streamlining purchase and payments. Our brokers will discuss your specific acquisition and provide guidance as to the best IT finance option.
IT Finance Budgeting and Planning Tools
Before embarking on a major tech update or upgrade, most business owners will need to prepare budgets to plan the financing and consider the affordability and viability of the move. Our Financing Calculator is a great tool for obtaining estimates for planning purposes.
This tool can be extremely helpful if considering different tech supplier quotes. Simply calculate finance estimates on each, to get an idea of the monthly finance commitments for each option and see how the repayments can be budgeted.
If preparing budgets some way ahead of the planned upgrade, be aware that interest rates may change. Lenders may alter their rates with Reserve Bank cash rate decisions.
Get Fast IT Finance Approval for Urgent Tech Purchases
If your system has crashed or been compromised, then the need to replace it can be extremely urgent. Our fast approvals capabilities can have most applications approved within 24 hours for prompt access to funds to proceed with the purchase.
Fast loan approvals still include our best rates, most workable terms, and individually sourced and tailored packages.
To update your computers and IT systems with financing, contact Jade Equipment Finance on 1300 000 003 to discuss a workable loan package.
DISCLAIMER: IF MISINTERPRETATIONS, MISREPRESENTATION OR ERRORS EXIST IN THIS ARTICLE, NO LIABILITY IS ACCEPTED. THE INFORMATION IS PROVIDED ONLY FOR GENERAL PURPOSES AND NOT IN ANY MANNER INTENDED AS THE ONLY SOURCE FOR MAKING FINANCIAL DECISIONS. THOSE THAT CONSIDER THEY REQUIRE ADDITIONAL GUIDANCE OR ADVICE SHOULD REFER TO AN INDEPENDENT FINANCIAL ADVISOR.
