Financing the future

 

Up-to-date IT is a crucial ingredient in any modern wholesale or distribution business, enabling companies to deliver a fast, responsive level of service and remain competitive. It's essential that such a critical business element is financed in the right way, one that allows for future development and doesn't impede cashflow. Using a flexible finance solution from Syscap, leading pottery wholesaler and distributor Apta was able to update its sales order processing equipment, improving efficiency without the need for significant capital outlay.

Apta is a major supplier of gardenware, with over 25 years' experience. The company is the leading pottery supplier to independent garden centres in the UK and Ireland, and employs around 100 people. Apta's two distribution centres, in Lincoln and Ashford, ensure that the company's service levels are on a par with the quality of its products. But
keeping this award-winning business operating efficiently requires significant investment in IT.

For many years, the company used a bespoke order processing application based on the PICK operating system once used by the US military. It became increasingly apparent that they needed to upgrade to a Windows based system, both for security reasons and because a more modern application would have a more comprehensive range of features. After much deliberation, the company opted to invest in Access Accounts Dimensions software, provided by software vendor Asyst Solutions Ltd.

While the new system would lead to savings in the long-term, the cost of the solution presented a short-term cashflow challenge for Apta's IT Manager Phil Hamilton. Rather than fund the investment using cash or credit, Hamilton turned to the UK's leading independent IT finance provider, Syscap, to discuss leasing.

Spreading the cost
By funding IT investment using a finance solution, companies are able to spread the cost – in Apta's case, a five figure one-off bill was transformed into significantly more manageable monthly payments. This relieves pressure on cashflow, allowing companies to invest in other areas of their business. Spreading the cost makes finance extremely predictable: as Hamilton puts it, “we know each month how much we're paying out – that's the advantage.” It also leads to a much faster return on investment, vital from a budgetary perspective.

A further advantage of a Syscap solution is its flexibility, both in terms of what it covers and the ability to make upgrades. Many finance companies are only keen to fund hardware, and shy away from providing finance for intangibles such as software. Not Syscap. The company realises that hardware is only one component of an IT solution, and that by looking at the broader picture, life is made much easier for businesses.

Syscap can arrange flexible finance to cover all aspects of IT investment – even training and maintenance. The agreement with Apta is a case in point. The vast majority of the IT solution Apta needed consisted of software, as well as training from Asyst. Syscap covered the entire investment – software, training and a server – with a single lease agreement.

Changing times
Because innovation in technology is such a rapid process, change needs to be factored into any IT acquisition. Here again, Syscap's solutions fit the nature of the technology perfectly, allowing businesses to make regular upgrades to their system, without increasing monthly repayment amounts. Indeed, it's sometimes possible to upgrade infrastructure and reduce your monthly repayments, as Apta discovered when they modernised their broadband capability.

At your service
The business case for leasing with Syscap, therefore, is a pretty compelling one. But a good idea is only part of an effective solution: it needs to be backed by a strong level of service. Syscap stood up to the mark, as Hamilton is quick to testify. “Dealing with Syscap has always been efficient and troublefree. One thing I hate is administration problems and not getting what you ask for when you want.”