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 organization 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 organizations are nervous about lending IT equipment finance for capital purchases without adequate security in case the company goes into administration. Leasing organizations 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.