Technology Finance
IT and Technology Finance
Future proof your business with smart technology finance solutions
Upgrading your business is essential to ensuring its future, which is why technology finance has become a sought-after necessity in Southern Africa. To future proof your business and remain ahead of your competitors, you need to add the infrastructure that will optimize productivity. Technology finance solutions create the perfect synergy of smart technology and smart financing to empower businesses to tap into the equipment of the future.
Supporting you in acquiring the necessary IT and Technology assets for your business
Merchant West Asset Finance has a team of dedicated specialists, offering Technology Finance, who understand the ever-changing needs of the connected technology world. We advise clients from inception and offer solutions that add value throughout the full lifecycle of the technology acquisition and/or its usage stages.
If you are planning to spend money on adding new technology assets or considering an upgrade and haven’t thought about renting these assets, you may want to reconsider.
Buying technology, such as laptops, desktops, tablets and smartphones, can place pressure on working capital and because technology evolves so rapidly, within just a few years those assets may be incompatible with the latest software, have insufficient processing power to run your latest programs and be ineffective in protecting your data from various security threats. Before you know it, your business is paying for another technology upgrade or refresh. In addition, discarding these assets presents an environmental challenge.
We help you to acquire the IT solutions your business requires for ongoing business operations and to remain competitive by structuring technology financial solutions for:
- High-cost hardware assets (laptops, desktops, tablets & smartphones)
- Storage and software assets (servers and storage, software and licences)
- Fibre and related connectivity
We finance your IT and software assets with a range of solutions that include an option to take ownership at the end of the contract term plus flexible deposit and off-balance sheet options to suit your cash flow needs.
What products do we offer?
- The Lifecycle Product is a complete approach to financing, managing, and disposing of IT assets from inception to the end of the contract, providing the client with convenience and simplicity throughout the asset lifecycle.
- IT Leasing
- Instalment Sale
- Sale and Leaseback
Consider trying a different way of funding your technology assets.
With Merchant West Technology Rental, you simply rent the technology assets you need for a fixed term (typically 2 to 3 years). It may be a cost-effective solution because you only pay to use and insure the assets for part of their lifecycle.
This could result in a lower rental cost than the asset’s potential value at the end of the term, but we take the risk on that, not you. You get the use of the asset over a pre-agreed, fixed period of your choice, for example, for the length of its useful life. At the end of the term, you do not own the asset, but we take care of its disposal.
Frequently Asked Questions
- Lower rental cost as we take the risk on end of contract values.
- Costs are evenly spread over the term, enabling accurate budgeting.
- Avoids hidden costs of older equipment, such as increased maintenance charges.
- Potential to move expenditure from CAPEX to OPEX.
- Up-to-date assets improve efficiency.
- Reduced risk of asset downtime.
- At the end of the agreement, you can return some or all of the assets or extend the rental period.
- No disposal cost – just return the assets to us and we dispose of the asset adhering to strict ISO applicable standards in conjunction with our partner.
- We also offer onsite data sanitisation.
We specialise in end-to-end asset management solutions for rapidly depreciating assets, ensuring you are rewarded with cost-saving benefits and escape the obsolescence costs associated with technology degradation.
Our approach revolves around three key stages of the equipment’s lifecycle journey:
Acquisition
Through our subsidised finance solution, we can offer you the option to:
- Purchase hardware at rates below the traditional bank’s prime lending rates
- Preserve cash for other core activities.
- Purchase hardware without a large upfront cash outlay.
Asset Management
The vital Asset Management stage delivers audit compliance and drives the IT strategy execution.
- Asset Tracking: We offer an integrated, dynamic software-based tracking agent, allowing you to manage and replace assets efficiently.
- Insurance: Our fully comprehensive insurance provides you with peace of mind
- Short-Term Rentals: Equip you with the flexibility to use our refurbished equipment for ad hoc purposes (such as training, internships, vac students etc.).
End of term Upgrades
Our ‘end-of-life’ services provide a range of solutions:
- IT Equipment Buy-Back: We will purchase the old equipment that you no longer have a use for, providing a supplementary cash injection into the business (for assets that are fully depreciated)
- Data-Destruction: Our asset disposal services comprise Certified Data wiping that complies with the Protection of Personal Information Act
- Reverse Logistics: We assist you with coordinating the removal of old equipment so that you can roll out new replacement stock to end users.
Technology finance refers to the financial strategies and solutions that help businesses acquire necessary IT hardware, software, and connectivity solutions. By utilising technology finance this enables ongoing business operations and maintains competitiveness without bearing the immediate full cost.
- Preserves Cash Flow: Spreads the cost of expensive technology over time, preserving capital for other operational needs.
- Access to Latest Technology: Enables businesses to regularly update their technology, staying competitive with the latest advancements.
- Budget Management: Predictable payments help in better budgeting and financial planning.
Get in touch with us
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