Today, almost every UK business uses IT technology to shape the products and services they sell, operate their communications, control their accounting, drive their marketing, or oversee their logistics and deliveries.
Page reviewed by, Chris Godfrey, Expert financial copywriter, on May 22, 2023 2:32 pm
IT technology has become so vital for business success that UK SMEs who do not have the latest tech are putting themselves at a commercial disadvantage. However, even though IT equipment is far cheaper than it used to be, it can still make a major dent in cashflow when it comes time to purchase. Fortunately, technology equipment finance is available to keep organizations on the IT cutting edge and cut the pressure on their cashflow. Secure the tech you need now, pay for it over time, never worry about your IT equipment again.Â
IT equipment finance – or technology equipment finance – are loans and leases to obtain IT hardware and software for business purposes. Because IT equipment depreciates very quickly, buying it with cash makes poor business sense. It’s far better to pay for your technology over months or years, build upgrades into the finance agreement to slow down obsolesensce, and preserve your valuable working capital for other areas of your business – such as a mergers, marketing, and expansion.
Some brokers will also have access to other funding for businesses, such as working capital, asset-based lending, unsecured business loans and more.Â
No matter if you’re a startup or a small business requiring a single office set-up, or you’re a full-size SME seeking an organization-wide IT upgrade and installation, you can finance everything you need with technology equipment finance and leasing. Â
IT equipment finance can help new businesses to secure the technology they need with either an IT equipment finance loan, or an IT equipment lease. What’s the difference between these finance options? See below.
These are loans that allow the borrower to pay for their IT equipment over time, spreading the cost across months or years. In most cases, the borrower pays the loan back, (plus interest and any fees), in fixed monthly instalments. At the end of the loan, the borrower owns the equipment outright.Â
Key benefits: Ease the strain on cashflow as you buy the IT equipment you need. Interest is usually a fully tax-deductible expense, and the payments form part of your capital equipment depreciation plan. May offer periodic upgrades to keep your tech up to date. Many IT finance options will offer an automatic buy-back at contract end.
Similar to a loan, except the borrower (lessee) is not buying the equipment, they are renting it over an extended period. At the end of the rental contract, the equipment will either go back to the lessor (equipment provider), or the lessee may have the option to buy the tech for a pre-agreed sum. May offer periodic upgrades to keep your tech up to date. The lessor may be responsible for maintenance of the IT equipment.
Key benefits: Eases the strain on cashflow. Usually comes with lower monthly payments than IT equipment financing. Does not appear on the company balance sheet as a liability. In most cases, the entire payments, (not just the interest), can be written off as fully tax-deductible expenses.
Your IT system is only as good as the software you run on it, which means it is as important to maintain the latest versions of your application and operating programs as it is to have the newest hardware. Even a simple software upgrade can vastly improve your organization’s productivity and efficiency. Once again, instead of paying for new versions of software out of working capital, use a software loan to spread the load. Pay over time. Build automatic upgrades into the contract to keep your software systems at peak performance.
Software loans can cover:
Securing IT hardware and software with technology equipment financing can deliver significant business advantages:
Technology equipment finance is a specialist area with differing rules of application and requiring deep knowledge of the sector from the lender. UK SMEs seeking funding may find themselves forever searching and making applications to lender after lender without success. The delays this can create could cause them to lose revenue and leave their business vulnerable to competition. Instead, working with a broker, who can access technology equipment finance from a wide range of lenders is a better way to go. No more cold calls and endless demands for information, just tell us what you need and leave the rest to us.Â
Give your business the IT equipment it needs to grow. Register with Swoop to find the best rates, the best terms and the best technology equipment finance today.
Written by
Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance.
To read our editorial policy, please click here.
Join the 70,000+ businesses just like yours getting the Swoop newsletter.
Free. No spam. Opt out whenever you like.
We work with world class partners to help us support businesses with finance
Address
Suite 42, 4th Floor, Oriel Chambers, 14 Water Street, Liverpool, L2 8TD
View in Google MapsVisit website
Contact us
Address
Suite 109, Somerset House, 37 Temple Street, Birmingham, B2 5DP
View in Google MapsVisit website
Contact us
Address
Aberystwyth Innovation and Enterprise Campus
Gogerddan Campus
Aberystwyth University
Ceredigion
SY23 3EE
Visit website
Contact us
Address
Dogpatch Labs, The CHQ Building, Custom House Quay, Dublin, Ireland
View in Google MapsVisit website
Contact us
Address
Level 2/477 Pitt Street, Sydney NSW 2000, Australia
View in Google MapsVisit website
Contact us
Address
43 W 23rd St, New York, NY 10010, United States
View in Google MapsVisit website
Contact us
Address
21 Dreyer Street, Cape Town, South Africa, 7708
View in Google MapsVisit website
Contact us
Clever finance tips and the latest news
delivered to your inbox, every week
Join the 70,000+ businesses just like yours getting the Swoop newsletter. Free. No spam. Opt out whenever you like.
We use necessary cookies to make our site work. You can change your cookie settings in Cookie Preferences
closeOur use of cookies
We use necessary cookies to make our site work. We'd also like to set optional third-party cookies to help us improve the experience. Using this website will set a cookie on your device to remember your preferences.
For more detailed information, please see our Cookie Policy
Necessary Cookies
These are cookies that are set by Swoop necessary for our website to function.
Third Party Cookies
These are services that are set by Third party companies in order to help us to understand and improve our website, remember preferences and to display advertising.
Necessary Cookies
We require some cookies for the operation of our website, which do not gather information about you that could be used for marketing or remembering where you have been on the internet.
For more detailed information visit our Cookie Policy
Third Party Cookies
These cookies help us to improve our website by collecting and reporting information on how you use it. The cookies collect information in a way that does not directly identify anyone.
For more detailed information visit our Cookie Policy