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September 2009 Computer Equipment Financing: Feeding the Green Shoots of Recovery For many businesses, the last three years have been tough but it is since the banking crisis created a shortage of finance that levels of trading and financial recovery have become critically hard to predict. We are told repeatedly by the Chancellor that financial recovery is on the way, that we are seeing green shoots; and it is true, most companies can feel a slight improvement in business, following the banking crisis that so restricted cash flow. Usually, with an upswing in the market, there is a chance to take advantage of the situation by investing in IT equipment and new software, but with the banks sitting on their hands, raising finance, especially IT finance, can be a real struggle or prohibitively expensive. The Bank of England has reduced interest rates to make borrowing finance easier and to stimulate financial recovery, but they forgot to tell the High Street banks. Whether it’s green shoots or the flickering flames of financial recovery we are experiencing, now is not the time to be borrowing computer finance from your bank, as rarely will it come without an onerous personal guarantee. The simple solution for any organisation seeking IT finance for a new suite of computers, or for upgrading software, is to approach a specialist computer finance company, such as Reality Finance, and examine the various options for IT finance through computer and software leasing. It is much easier and more affordable to lease computers and software than it is to raise computer finance and buy the items as a capital purchase, because the leased items remain the property of the leasing company until a deal is struck at the end of he specified term. Banks and other organisations are nervous about lending IT equipment finance for capital purchases without adequate security in case the company goes into administration. Leasing organisations retain ownership of the computers and software, so if a receiver is called in, the leasing company can simply collect their own equipment. In other words, as far as the leasing company is concerned, the security for the lease is the leased equipment itself. Therefore, by leasing hardware and software, a business can enjoy the benefits of IT finance without having to give personal guarantees against a large loan. Computer finance is available for companies with a good credit history that do not wish to reduce their reserves of cash at a time when financial recovery has still a way to go. August 2009 Build Relationships with Smart Finance Companies, Sharratt Advises Channel Partners A recent article in Channel Web by Honeywell's David Sharratt has raised some important points about distributors / resellers increasingly suggesting leasing as a sensible option. Sharrat advises "build relationships with a smart finance company" as this can help manufacturers and customers find the right financial solutions. "For example," he says, "if a customer is finding it hard to pay for a particular solution, there are leasing companies that will bundle the solution including hardware, software, airtime, services, and maintenance, for a monthly fee." Reality Finance wholeheartedly agree with the advice given in the article, and recommend any interested manufacturers or channel partners give them a call if they want to discuss how Reality can help further. The full article is available at Channel Web - Easing Customer Cash Flow August 2009 What’s the Difference Between Computer Leasing and Computer Renting? You’re thinking of a new computer but don’t wish to buy, so you wonder whether computer leasing is the way forward or, rather than a computer lease, you should rent. Well, it all rather depends on what you need your computer for. Computer leasing and computer renting with IT equipment financing, seem similar. They are not. Computer Leasing is the ideal option if you want IT equipment without using valuable cash flow to purchase a computer or network of computers plus the additional costs of insurance and technical support. A lease agreement with an IT equipment financing company is for a set period. Payments are typically monthly and usually with technical support included in the computer lease package. At the end of the computer lease agreement the IT equipment financing company may allow you to sell the IT equipment and keep the proceeds. If you break the computer lease agreement within the time specified there may be a penalty payable to the IT equipment financing company. The main benefit of computer leasing is that it costs a lot less at the outset than buying. It certainly makes sense for small businesses with little capital to take an IT equipment financing lease. Remember also, it is a flexible and tax- efficient way of supporting your business. Computer Renting with IT equipment financing is right for you if you need a computer just temporarily. For example if, say, you were to set up a computer training session, or asked to make a presentation to a convention, rather than taking all your own IT equipment, or be involved in a long term computer lease, you could rent the set-up for a one-off fee and then return it at the end of the event. It’s a bit like renting a car really: you pay the fee, hire the computer – or network of computers - for a set time and then return it to the IT equipment financing company. No fuss and no need to bother with a computer until the next time. What could be simpler? July 2009 Keep Your Server Room Cool: Protect Your Server Financing You’ve recently leased a new fileserver. Fantastic, it’s faster and you’re really pleased with the finance help you received. Now you want to protect your investment during the hot weather as you’ve heard that you need to make sure your server is kept cool. Most computers and networking systems operate within a fairly narrow temperature range. Anything above this, even just a few degrees can blow your server and work stops. Currently we’re experiencing hot spells and because of this air conditioning is essential. Temperatures fluctuate throughout the day and night in the server room, so a good air conditioning system keeps the server room cool at all times and protects your investment. To finance another server could be costly! So, after the recent hot spell, this could be the reason your server was slower than usual. So this summer remember - cooling the server room will protect your finance, plus any loss to your company with the server being down. May 2009 Computer Finance - How, Why and Who? You've made the decision to get your latest computer on finance - and why not, it's going to do wonders for your cash flow and ensure you get the latest machine. But how to go about it? Do you go to the computer manufacturer direct? Do you go to the bank? Do you approach a specialist computer finance company? In this article, we look at the different routes available to you to get your computer. Traditionally, the first place you went when looking for finance would be your bank manager. Computer finance is no different - and your bank will undoubtedly be only too happy to help. But beware of the hidden pitfalls. Banks will generally only lend your business a set amount - and any kind of lending it makes will count towards this. The current economic climate makes banks even tighter on their lending criteria. A tax-deductible leasing agreement, rather than a bank loan, could make more sense. A number of manufacturers offer finance or computer leasing deals. Apple, for example, offers two options to professional UK customers called "Finance Lease" and "Residual Lease". If you are happy to be locked into a single manufacturer, these can be worth a look - they often provide upgrade options as well, to ensure that you always have the latest IT equipment. But you will be limited to that manufacturer’s computer equipment – so this may not be the best route to go for custom solutions, or where you need a piece of hardware that a manufacturer can’t provide. Resellers have now entered this market as well, though they generally can't match the specialist finance companies for flexibility and high APRs are typical. Specialist computer finance companies such as Reality Finance can offer the best of the manufacturer's computer finance upgrades and the most flexible payment options to match your business. They work well for those companies who need multiple software and hardware purchases or more complex requirements like server leasing. April 2009 5 Reasons to Lease in a Recession Your company may be holding its own in the current economic climate, and you may be looking to replace old IT equipment – but there’s always that feeling that you can make do with what you’ve got while the economic climate is uncertain. Leasing provides a financial solution which can help any size of company ride out this time and when those green shoots finally start to grow, be best placed to take advantage. Here we look at 6 reasons why it makes sense to consider leasing in a recession 1. Buying for the future This recession isn't going to last forever, but if you could invest in your business systems now to make sure you are ahead of the field later, wouldn't that make sense? Computers, servers and all kinds of IT equipment can be obtained on a lease to make sure you're working on the right hardware and software and not falling behind your competitors. And rental agreements have the ability to be upgraded within the term of the agreement - keeping pace with the latest technology. 2. Cashflow Cash is king, and never more so than in a recession. Customers increase their payment periods, which makes budgeting hard. So you put off that new server purchase until the cash is there... with a server leasing agreement, you could move much faster on the equipment you want, and with a payment plan to suit your cashflow needs. 3. Payment structure to suit you As well as avoiding large capital outlays for new IT equipment, finance agreements can be structured to match rentals to suit you – making it easier to work out payment schedules.4. Helping you sell in a recession "Well, I'd like to buy but my budget's just been slashed..." Your salespeople may be finding it hard going at the moment with everyone trying hard to avoid spending money. So why not introduce a finance option into your sales? Working with a company like Reality Finance allows you to offer flexible payment options to your negotiations. 5. Leasing Doesn’t Affect Other Credit Lines As a tax-deductible operating expense, Leasing agreements don’t impact traditional lines of credit. This is important, as credit is hard to come by at the moment, as banks tighten up their lending criteria. Leasing computer equipment really makes sense at all times – both in healthy economic times and in a recession. It always makes sense to talk to a specialist company like Reality Finance who have experience in securing finance into all areas of industry, from small start-up companies through to SMEs, blue-chip corporates, education and local government sectors. January 2009 Bank of England Reduces Interest Rate to 1.5% The Bank of England has cut the interest rate to the lowest level since the bank was founded 300 years ago. Read more: Bank of England News Release. November 2008 The public sector and IT: working together for success As a recent Computing and IT Week Magazine article outlined, IT has been growing at an 'exceptional rate' and has great potential for helping the public sector streamline their services during the curent financial climate. Read more: The IT industry can revive the economy. October 2008 Reality Finance sponsors hospital radio A 21st birthday is worth celebrating, so during October, award-winning hospital radio station Rookwood Sound has expanded its services to broadcast across Cardiff and the Vale. And what better way to mark this than with sponsorship by Reality Finance. Due to its company ethos, Reality Finance are very keen to support this charity and are one of several UK-based companies taking the opportunity to advertise their business several times a day on 87.7 FM. And on completion of this celebratory month, Reality Finance will become regular show sponsors in recognition of their ongoing support for Rookwood Sound. So here’s to the next 21 years of successful broadcasting and to Reality's continued support of this great charity radio station. September 2008 Our simple solution for suppliers If you’re a supplier who is finding it increasingly difficult to make a sale in these financially challenging times, we can help! We have just updated our Reality Check section with a new downloadable pdf which explains our solution to commonly-encountered problems that you, as a supplier, may face. Just take a look at our suppliers section to find out more. August 2008 Reality Finance Solutions continue with another strong performance as shown in recently published results for the third trading quarter of the current financial year. We're well on track for yet another successful year, with an 8% increase in turnover to £11.5m from the same period last year and a 15% uplift in gross profit to £868k. Jon Leslie, Managing Director of Reality Finance said: “During this year we have continued to see a steady up-turn in business, which further demonstrates our company ethos of offering a personal, tailor-made and highly professional service to all of our customers.” March 2008 Calculating your savings Try our new Lease vs Buy calculator. New to our website is an ‘at-a-glance’ Lease vs Buy calculator. It’s a great tool for anyone wishing to compare the options and see the real benefits of choosing Reality Finance as a finance provider for their company’s equipment. Just add in the value/net cost of the equipment you are looking to acquire and the calculator will create an example of what your savings would be over a three year term if you were to opt for a leasing arrangement with us. Just click here to see what your company could save and to try it out. At Reality Finance we have the expertise to provide you with the creative finance solution that’s right for your IT hardware and software product needs. Due to our proven track record we have the ability to finance more than you might realise. The list is basically endless. To give you a good insight in to the portfolio of assets that we can provide a finance solution for we have now created a ‘What we finance’ page. February 2008 Sometimes the world of finance can be a confusing mix of acronyms and abbreviations. That’s why we have produced our own A-Z of finance to help steer you through this. In addition to this, we have now added a list of useful industry links, designed to act as a recognised guide for assistance in issues such as taxation and credit. Check back regularly for additions to this resource. Specialist IT, high-tech and asset leasing company Reality Finance Solutions Limited appears to be dismissing the current gloom surrounding the global credit crisis. The company who have been trading since 2000 have already achieved considerable success as shown in the recently published Quarter 1 results; these show a 7% increase in turnover to £4m and an impressive 13% uplift in gross profits to £300k. Jon Leslie, Managing Director of Reality Finance said, “Despite challenging conditions in the credit market we are delighted with the promising start to our new financial year. Our flexible attitude to risk and extended credit bandwidth is setting us apart from traditional banking and funding sources who continue to tighten their credit belts.” January 2008 Rugby is probably the ‘ultimate’ team sport, and Guildford Rugby Football Club have found the perfect partner in the Godalming-based company Reality Finance. STOP PRESS! 'Reality rugby kicks in' (story featured in the Surrey Advertiser) ... more December 2007 Green Christmas During the festive season it’s great to contact new and old friends and business colleagues by the tradition of sending a Christmas card. However, this year Reality Finance has decided not to follow this tradition and is taking the ‘environmentally-friendly’ route, while at the same time helping a locally-based children’s hospice, Chase. So this year we will be sending out our seasonal greetings via an ecard. We appreciate that these can’t be strung up around the office creating a festive feel, but just think of the more lasting effect that our donation will have in making a contribution to the huge amount of money needed each year to keep Chase operating. If you would like to make a donation to support Chase please visit their website at http://www.chasecare.org.uk/.
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