Presented by Digicape

Business finance options leaving you at a loss? Digicape is here to help

Technology plays a critical role in addressing business needs, which can often be construed as a financial burden.

Gaynor MacArthur, Sales Director at Apple Premium Reseller, Digicape, argues that this does not necessarily have to be the case.

“Businesses that invest in technology upfront will actually end up saving them money in the long-run… if they choose the right technology,” says MacArthur.

Businesses looking to get the most bang for buck are advised to invest in Apple products. MacArthur explains, “a PC’s purchase price is around 18% of its lifetime cost, while a Mac’s purchase price is approximately 50%.

“What this means is that you will generally spend far more money on maintaining a PC than you would a Mac, and maintenance costs will far exceed the initial outlay,” adds MacArthur. (See more here).

However, Digicape recognises that not all businesses have the cash flow immediately at its disposal to invest in technology, and offers financing solutions to assist. MacArthur, mentions that there are two financing solutions to consider – Capex and Opex.

What you need to know about Capex

MacArthur explains that “Capex is the preferred solution when a business is looking to own equipment after leasing it for extended period of time (46 – 60 months).

“Finance Directors often prefer this form of financing as they are able to monitor all expenses on the company’s balance sheet, however, this does effect a business’s credit line,” adds MacArthur.

This finance option is often preferred by educational institutions.

What you need to know about Opex

There are two rental options, namely: rent-to-own and rent-to-return.

MacArthur says, “Both of these rental options are listed as an operational expense, which means all costs are off-balance sheet and businesses do not experience depreciation. It is also tax deductible monthly.”

By renting-to-own, businesses are able to rent equipment for up to 60-months, with flexible payment plans. At the end of the contract, the business ultimately owns the equipment they have been renting. However, should a business wish to opt out early, or extend the contract, they have that option, too.

By-renting-to-return a business is able to rent equipment for up to 36-months, and because the equipment will be returned at the end of the period, a business actually experiences a reduced total cost of ownership. Of course, there is the option to purchase the equipment, should the business wish to do so.

This is perfect for prosumers in, for example, the film industry.

“At the end of the day, each business is looking to receive finance solutions that tailor to their specific needs, and whatever that need, Digicape is here to manage the process – saving a business time and money,” concludes MacArthur.

This article was published in partnership with Digicape.

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Business finance options leaving you at a loss? Digicape is here to help