Failure to upgrade IT systems hampering SMEs

Published on 28th March 2017

In the world of business today, ensuring that your IT systems are up to date, fully functional and compatible with an extensive array of devices is imperative. Thanks to the advances in mobile technology, your customers can now shop online whilst roaming the streets or in the comfort of their own homes. Using only a mobile phone or even a tablet they can now browse your website, pick through stocks and pay for goods and services with a tap. The future of business is online, embrace it.

The way of the future, now

IT systems are now an intrinsic part of sustaining a successful business into the distant future. Yet, according to a report by A&O IT Group, 42% of business owners are losing revenue due to system glitches, faults and other IT-related issues. Plus, to make matters worse, only 54% of such businesses conduct annual system check-ups making such occurrences all the more likely.

By failing to properly check their systems and any associated security software, a further 35% of business owners are leaving themselves open to online fraud. So if you think fraudsters are looking exclusively at big multi-million corporations instead of SMEs, think again. Last year SMEs lost around £124 million.

Understandably, as an SME business owner, the day-to-day operations of your business are certain to constrain your list of priorities. Consequently, you may not be able to spend as much time as you’d like reviewing your IT systems. Factor in the additional cost of maintenance and the whole thing becomes an absolute nightmare. However, it needn’t be this way. If you’re worried about the cost of installing and maintaining your IT and security systems, Rangewell can help.

Funding the future of your business

If you need to upgrade your business but are worried about hefty expenses that could easily swallow up a large chunk of your capital, help is at hand. Leave your capital where it is, by searching the alternative finance solution you’re bound to find the perfect finance product to suit your business’s needs. A popular package amongst IT professionals, like yourself, is asset finance.

Ever onwards with asset finance

Asset finance is the ideal package when looking for vital equipment for your business, whether you need additional laptops and PCs, Personal Digital Assistants, new and improved mainframes, hardware upgrades and so on. Consisting of an array of finance products, your business could benefit from Business Loans, Leases, Hire Purchase solutions and much more. In short, asset finance can drive your business forward!

Business Loans:

Business loans often come secured or unsecured, accompanied by a variety of terms that are either short or long term.  Short-term products can last from 1-3 years whereas long-term products may range from 3-6 years and beyond. The term dictates exactly how long your business must commit to making fixed monthly repayments, plus interest.

With an unsecured business loan, you could potentially secure a lump sum in the region of £5,000 to £250,000.  This product doesn’t require you to set aside assets for security, but you could offer a personal guarantee in order to acquire a larger lump sum.

However, with a secured business loan you could acquire a sum in the region of £5,000 to as much as £1,000,000. In exchange for a much larger sum, this product will require your set aside assets as security. This will allow lenders to reclaim these assets in case your business becomes unable to keep up with or complete the monthly repayment scheme.

Leases:

Leasing agreements are the means in which your business can borrow equipment for a monthly rental. Such agreements can last from 1-3 year or longer. When discussing leases it’s important that you understand the two types that are available: Operating and Finance.

  • Operating: With this agreement, you only borrow the asset for a portion of the asset’s projected working life span. You do not take on any other responsibilities, such as maintenance, repairs, registration and so on. At end of the leasing term, you can either extend your lease or hand back the asset. It is unlikely that the lessor will extend an offer to buy the asset in question.
  • Finance:  Here, you’ll be required to commit to a monthly rental scheme. The term that could be offered may cover most of, or even the entire, projected working life span of the concerned asset. You will also be required to accept certain responsibilities such as maintenance, repairs, registration, administration and so on. At the end of the agreement, you are free to return, extend or purchase the asset from the lessor.

Hire Purchase:

If you require large, heavy and often very expensive pieces of equipment, a hire purchase solution can be of tremendous help. This finance solution is designed to help you acquire an asset and eventually becomes its owner. It works by having an alternative lender purchase the asset on your behalf.

Before you can install and make use of the asset you will be required to provide a deposit to the lender in the region of 10% of the asset’s total worth. Once this has been paid you can make use of the asset whilst making monthly repayments to the lender, plus interest. Once the repayment scheme has been paid in full you become the asset’s owner.

Our values are simple – We’re on your side.

At Rangewell, our values are simple – We’re on your side. Our services are clear and transparent. We support a wide range of SME businesses of every shape and size, for finding every type of finance. Follow us on Twitter and LinkedIn for business tips and tricks, and feel free to call us on 0203 637 2340 if you’d like to chat about what we can do for you.


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David Harrison

David Harrison

Content writer
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