|
NE firms waste £16.2m a year on bad IT financing
28/06/07
If businesses in the North East cut out the broker middleman and
source IT finance via independent online marketplaces they could
collectively increase their IT spending power by £16.2million a year
- enough money to purchase 46,411 laptops, which would stack almost
86 times the height of The Angel of the North.
These are the headline findings of research conducted by financial
analysts at Smartfundit.com Other findings include:
12 pence in
every £1 borrowed to finance IT purchases & leases is needlessly
wasted on admin costs, charges and inflated interest rates.
Poor IT financing costs North East businesses more than £323,000
every working week.
For every £1 borrowed to finance IT purchases and leases, 12 pence
is needlessly wasted on admin costs, charges and paying higher than
necessary interest rates.
The
table below shows the cost of poor IT financing in the UK:
England - £425,733,138
Wales - £19,275,513
Scotland - £40,085,199
Northern Ireland - £11,255,523
Using
proprietary data as well as government and industry statistics,
Smartfundit.com modelled the various costs involved in sourcing IT
finance, including:
- Executive and administrative time
- Office costs and legal representation
- Broker fees
- Finance provider charges
- Higher interest rates
The costs for three different scenarios – sourcing finance via a
broker, via a technology vendor and direct with finance providers –
were then compared against sourcing via an online IT finance
marketplace to reveal the ‘cost of poor IT financing’.
“Sourcing specialist IT finance can be a complex task, made all the
more difficult by the lack of transparent advice and information.
Unsurprisingly then, businesses are falling foul of hidden costs and
are unlikely to get the best deal possible,” said Suki Gallagher,
CEO of Smartfundit.com “Our research underscores the financial
imperative for looking at alternative ways of sourcing finance, such
as letting finance providers bid for your businesses online. It’s
about time businesses took back control and turned IT financing into
a borrowers’ market.”
Smartfundit.com cuts out the middleman and provides a fast, easy and
secure way for companies to source flexible IT leasing finance.
Since launching in January 2006, Smartfundit.com has been used in
the funding of technology purchases totalling more than £250million.
Nick Gibson, editor
© Copyright Screen-Studio.com
2007
|
