The Value of Technology Leasing When Maximizing Limited Budgets
By 2020, large and small information technology (IT) departments, data centers, and technology professionals of all kinds completed a decade of digital transformation (DX) in less than 30 months. Changes related to the pandemic, the economy, and innovation have permanently refocused business and consumer demands on increasingly digital-centric solutions. Digital technology has been embedded into most industries. Your ability to win in today’s marketplace may be directly correlated with the ability to invest in the software, servers, hybrid-office, and mobile technologies required to keep pace with customer and employee needs. Adding inflation, labor shortages, and challenges in the technology supply chain to an already challenging financial situation requires strong financial partnerships.
Growth is limited in today’s market, where IT industry expertise and innovative lending capabilities are lacking through bank lending. Solving this challenge often requires looking beyond traditional lending and seeking the unique benefits of a strong, independent equipment lender. With the help of an independent IT equipment lender, you can cost-effectively upgrade technologies and digital experiences in all business cycles.
What is an Independent Equipment Lender?
Banks are necessary for economic success and undoubtedly beneficial to the technology innovators in the market today. But as banks have become exponentially larger and their scope of services has expanded to riskier activities, regulation has increased accordingly. As such, bank decision-making must happen in the construct of a regulatory environment that simply doesn’t always align with the pace, flexibility, and creativity required for the capital needs of evolving digital platforms and products—leaving a void in the market.
Independent lenders offer specialty financing without the regulatory, process, and bureaucratic obstacles banks are required to operate within. They can move faster, be more flexible, and bring unique expertise in an asset type of financing or an industry. This adaptability is especially attractive for executives seeking technology leasing for complex IT projects, data centers, cloud technologies, or specialized software like enterprise resource planning (ERP), customer relationship management (CRM), cybersecurity, identity protection, and data integrity. Independent equipment lenders fill the void left by traditional lenders.
Independent Technology Equipment Lender Advantages
What if you need a payment structure for servers and installation services that align with new revenues collected from subscription-based revenues? Could lower up-front costs of desperately needed work-from-home technologies improve employee satisfaction in an environment where good talent is hard to find? If you aligned your 5G investment with monthly payments matched to a scalable long-term budget, would it be easier to get the project off the ground?
These are only a few opportunities requiring the flexibility and reach offered by independent equipment lenders. With a deeper understanding of technology lifecycle management, IT OEM and VAR Channels, software applications, and project investments, an independent can create customized and powerful payment solutions.
But flexibility extends beyond finance structure. It extends to finance approvals. Traditional lenders are bound by credit policies that are rarely built from knowledge of a specific industry and even more seldom tailored from business to business. Independents can dig deeper into your story instead of relying only on a history of financial performance. The result may yield access to more capital, better financial structures, or approval of needs traditional lenders avoid.
Beyond approval and access to capital lies the most undervalued benefit independents bring to the needs of information technology leasing and industry expertise. Independents understand the technology, resale implications, and residual values. They combine that knowledge with an expert-level interpretation of an innovator’s issues to offer strategic direction. Working with independents can help IT leaders develop a plan to acquire, finance, manage and dispose of equipment to maximize cash position, cash flow, and ultimately, profit.
What to seek in an Independent IT Equipment Lender?
Finding the right independent technology financing partner may be easier than you think. Here are several key attributes to consider that are ultimately paramount to your success in acquiring capital for information technology upgrades:
- Experience. It’s important that a lender has demonstrated success with a wide variety of technologies and company applications.
- Geographic reach and financing solutions. Ensuring lenders have a full complement of information technology leasing and IT loan structures that can be deployed throughout the United States and Canada is essential.
- Broad credit appetite. Technology-related businesses’ financial difficulties are part of being in business. A strong IT finance partner should seek to understand and overcome these issues.
- Financial strength. A good lender can use its own balance sheet to maximize flexibility and competitive offerings.
- All kinds of equipment and dollar amounts. New or used, stock or custom—the right technology finance provider can offer to finance both small and large capital needs.
NFS: The ‘Story’ Credit Lender To Power Digital Transformation
NFS Leasing has funded the IT equipment and project needs of early-stage, turnaround, and high-growth firms for 16 years. With over $1B in capital deployed to companies requiring funding beyond the limitations of traditional lending, we are committed to digging deeper, getting creative, and solving the problems that empower you to capitalize on the market opportunities.
If you have a piece of equipment, project, or unique IT leasing or technology financing needs, let’s talk. NFS Leasing has a variety of IT financing options to meet your business need. Contact us today here or call us at 866-970-4637