Kapitex Healthcare is a rapidly expanding specialist medical products supplier. Established in 1991, the company is committed to innovation and product development, and employs the very latest IT systems and solutions for the benefit of both staff and customers. In order to afford the best possible technologies, without disrupting cashflow, Kapitex chooses Syscap, the UK’s leading independent IT finance, leasing and asset management provider..

Kapitex has been working with Syscap for over three years. Like many smaller businesses experiencing a period of expansion, the company had begun to outgrow its legacy systems, and realised it was time to adopt more scalable and sophisticated IT solutions. “The technology we had was clearly coming to the end of its useful life,” explains Stewart Pearson at Kapitex. “We had progressed to a different level of working, and needed IT solutions to match.”

Kapitex approached IT supplier TSG (then known as Baron Corporate Systems) to help identify the right equipment. Until this point, Kapitex had never used leasing or finance to fund IT acquisition, preferring to pay up front wherever possible. “We had always chosen to purchase our IT as we went along,” says Pearson. “But this left us with depreciating assets that needed to be replaced.”

TSG identified the most appropriate solutions for Kapitex. As well as hardware, TSG also suggested new software solutions, including customer relationship management software. Taking the company to a more sophisticated level of IT adoption inevitably involved a more significant investment, leading Pearson and his team to look for more effective methods of acquisition than up-front payment. “The CRM software was a key additional item that we hadn’t really thought about before consulting TSG,” says Pearson. “That made up a considerable element of extra spend which caused us to consider the leasing option.”

TSG suggested that Kapitex meet with Syscap to discuss the best finance options available. Established in 1990, Syscap has over 15 years’ experience creating tailor made finance solutions to suit each individual client’s needs. Crucially for Kapitex, Syscap can include software and services as part of its finance agreements, enabling complete IT solutions to be covered in a single lease. Pearson could see several benefits in choosing finance over outright payment. “The deciding factor for us is being able to spread the cost of our equipment over its useful life,” he says. “This makes sense both in terms of business performance and also improved cashflow management.”

One of the elements of Syscap’s finance option that particularly appealed to Pearson and his team was Systems Change, which enables companies to upgrade their leased equipment, often with little or no addition to payment levels. “There is a degree of flexibility about the finance options offered by Syscap,” says Pearson. “There is the opportunity to buy equipment at the end of the lease term, to upgrade or change equipment as necessary and also to add equipment to the agreement, without increasing payments. This really helps to ease the financial load.”

By his own admission, Pearson knew little about leasing before working with Syscap, so trust was a major factor. “From the outset, the relationship with Syscap was very important,” he explains. “Now we’ve been working together for three years, and I always get to deal with the same two people. There’s a great deal of continuity and they now have a deep understanding of our business and what we hope to achieve.”

Since the initial IT upgrade three years ago, Kapitex has further strengthened its CRM capabilities, using finance to help afford the best possible solutions and ensure its customers receive the highest levels of service. In addition, the company has extended its IT provision to cope with staff expansion and the growing need for best of breed solutions in all areas of the business. “I see our relationship with Syscap continuing into the long term,” says Pearson. “Although the systems we chose three years ago are still working extremely well, there are always upgrades and new solutions just around the corner that might serve our needs even better. We keep our eye on the marketplace, and when the time comes, Syscap will make sure we can afford whichever solutions we choose.”