Software finance is a huge part of what we do and is an industry experiencing a significant upwards trend, in line with modern technological advancements.
Allowing customers to finance software over a 1-5-year period gives them the flexibility to choose their repayment period (whether it be monthly, quarterly or annually) as well as allowing them to benefit from multi year discounts that are offered when purchasing software. This is applicable to a plethora of sectors and industries, and their intrinsic software requirements, a few examples being Business Critical applications, CAD, CAM, Cyber Security, ERP and Anti-Virus Software.
Case Study Example based on Autodesk Software
Software Renewal cost 1YR - £10,000.00 + VAT
Software Renewal cost 3YR - £26,000.00 + VAT
Finance cost 3YR Renewal - £808.00 + VAT per month over 36 Months
Cost of Finance - £29,088.00 + VAT
Looking at this example we can see that if the customer chooses to go down the three-year finance option they benefit from the discount of the multiyear, of which the discount covers the cost of the finance and then some. They also benefit from the obvious perk of being able to pay monthly as opposed to paying £26,000.00 upfront which for many businesses can place a huge strain on cash flow, especially when taking other expenditure into account.
Furthermore, the price of the software is locked in for the 3 year period and so the customer does not have to worry about the inevitable price increases that are common place in the market.