No Budget to Replace or Upgrade Your IT Technology… No Worries!

Posted by Herschel Salan on February 21, 2017March 3, 2017 Posted in Biometrics, Finance, Government, Healthcare, Hospitality, Retail, Unified Communications Tagged budget for technology, financing technology, leasing services, NEC, NEC Financial services, nec financing, NECAM, Software financing

In today’s environment of constant change, you may find yourself needing to replace or upgrade your IT/communications technology due to circumstances out of your control. For instance:

Vendor may have announced end-of-life for the system you currently have
An unexpected event has occurred that has compromised your system
Vendor has filed bankruptcy and you don’t know what the future holds
New functionalities are being requested by end users that your system is not capable of
IT cannot expand and support the growth of your company’s communications requirements

When these situations arise, more often than not, it is not in the budget. And, as long as there is dial tone, it’s hard to convince the powers that be of the necessity of spending dollars on replacing their communications system. So, what are your options?

Do nothing and run the risk of your system going down or not being able to support your end users with the services they require
Look to see where you can find dollars in the existing budget and where you can make cuts on other projects

Or…

Consider financing or leasing options for your technology acquisitions

Financing is a great alternative to traditional funding sources. It lets you act quickly and does not negatively impact your budget. When choosing this path, you need to consider carefully the funding source. You need a source that is responsive and understands the nuances of acquiring new technology and has the expertise to meet your exact needs. One such company is NEC Financial Services.

NEC Financial Services has provided IT/communications finance solutions for more than 30 years and during that time has supported many companies in getting all their technology needs through flexible financing options. They start with a transaction team and use underwriting and financing contracts that are customizable to their clients’ needs. Their unique system enables them to create a better solution that ensures their clients have what they require to grow their business.

NEC Financial Services team offers several options for the financing and leasing of technology acquisitions. And, the best part? You can purchase various IT hardware, software and associated items from multiple vendors and have NEC create a financing package customized to your specific needs.

Some examples of the different financing and leasing approaches they offer that you will find are very different from a more traditional lender or bank:

Programs based on customer requirements – most organizations face the same business challenges that are not easily resolved with standard finance transactions. NEC Financial Services provides different types of programs based on customer requirements. From a purchase to own arrangement to an OPEX finance option, the program is designed to fit the business need. Including:
Terms to Protect Against Technology Obsolescence – for clients where obsolescence is a real issue, they can structure shorter terms so they can keep up with important technology updates to grow their business.
Maintenance Financing – option to finance one of the more expensive, yet critical components of a new technology purchase – maintenance.
Tech Refresh Lease – clients can get technology updated with a simple schedule as an addendum to the master lease or finance agreement. It’s easy and gives a customer an opportunity to keep on top of technology changes.
Software Financing an option for leveling out investment costs versus having the initial capital investment cash flow impact the budgeting cycle.
Off Balance Sheet – many organizations find it more attractive to acquire technology as an operational expense, giving them additional financial benefits.
Driven by cash flow – if an organization has a specific budget amount they need to meet, NEC Financial Services will work to structure financing to accommodate that number.
Our job would be to align the budget expense to the cost of that technology over time. For example, with a $10K budget a month – the goal would be to get that number to $10K or less.
Beyond the traditional – NEC Financial Services designs financing options to ensure that clients can receive funding for their technology upgrades and investments, even during the installation or implementation phases. Many times this can be accomplished through various offerings that include direct and working capital loans or structured financing.

In addition to the financing options, NEC Financial Services also provides asset tracking. They find that many of their clients require a more robust asset tracking system than they have in-house. They can track assets by jurisdiction, county, state, and zip code, taking the burden from their clients while providing added value.

NEC Financial Services goal is to support their clients’ ongoing business growth through long-term relationships. They make great efforts to understand client’s business requirements and growth strategies so that they can structure finance options to meet their needs and successfully implement their plans.

Technology is in NEC Financial Services DNA – especially since they are a division of NEC which was named as one of the 50 most innovative companies in 2016. They are truly committed to providing excellent service to their clients to ensure they are able to get the technology they need to remain competitive.

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Acquire New Technology on Your Terms

Posted by Bryan Williams on January 15, 2016January 19, 2016 Posted in Education, Finance, Government, Healthcare, Hospitality Tagged acquiring new technology, financial services, IT budgeting, lease, Leasing IT purchases, Making IT Budget decisions, NEC Financial services, opex, technology

Frequently organizations adopt a “make-do” attitude when it comes to technology, primarily because the acquisition of new technology is often expensive and time-consuming to implement. Add to that the potential complexity of integration to legacy systems, hardware and software upgrades, and an increase to capital expenditures, and many organizations feel it is necessary to maintain rather than upgrade. Until…

A multitude of events can create demand for new and upgraded IT resources, including:

You’ve landed that big fish – acquiring a new major client that requires certain amounts of integration to your systems or you simply need to improve performance.
An acquisition may be in the works – whether you are looking to expand via acquisition; be acquired or merge with another company, having up-to-date IT assets will help ease the transition.
The company is ready to grow – perhaps the organization has reached a milestone and is ready to expand, either to new markets or geographic areas. The need for a solid IT infrastructure to accommodate expansion is incredibly important.
An existing IT vendor folds – it’s sad, but can happen. Now, you have technology without support and are in need of a rapid change in order to ensure your organization is not adversely affected.

You may find that you need to act quickly, and need to do something that does not negatively impact your budget. Where do you turn?

Your Technology Funding Source

Traditional sources are not always the most effective means to fund your IT needs. You need a source that is responsive and understands the nuances of acquiring new technology.

“At NEC Financial Services, we start with a transaction team and use underwriting and financing contracts that are customizable to the client needs,” said Herschel Salan, vice president, NEC Financial Services. “Our unique system enables us to use experienced people, coupled with 30 years of knowledge, to create a better solution that ensures our clients have what they require to grow their businesses.”

Attention #B2B CIO or CFO, you have options to Acquire New Technology with Flexibility. Click To Tweet

The NEC Financial Services team offers several options for the financing and leasing of technology acquisitions, and yet the approach can be very different than you will find at a more traditional lender or bank. For example:

Programs based on customer requirements – most organizations face the same business challenges that are not easily resolved with standard finance transactions. NEC Financial Services provides different types of programs based on customer requirements. From a purchase to own arrangement to an OPEX finance option, the program is designed to fit the business need.
Off Balance Sheet – many organizations find it more attractive to acquire technology as an operational expense, giving them additional financial benefits.
Driven by cash flow – if an organization has a specific budget amount they need to meet, NEC Financial Services will work to structure financing to accommodate that number.
Our job would be to align the budget expense to the cost of that technology over time. For example, with a $10K budget a month – the goal would be to get that number to $10K or less.
Beyond the traditional – NEC Financial Services designs financing options to ensure that clients can receive funding for their technology upgrades and investments, even during the installation or implementation phases. . Many times this can be accomplished through various offerings that include direct and working capital loans or structured financing.

“Our team becomes very involved with our clients to understand the technology, how it will have a positive impact on their business and how to best fund it for success,” said Salan. “Whether it’s progress loan financing in the early stages of a longer term transaction, or even multiple vendors and multiple technology types, we structure our financing to meet the business needs.”

More Than a Banker

“Our goal is to have long-term relationships with our clients where we support their ongoing business growth,” continued Salan. “We ensure that we understand their business requirements and growth strategies so we can structure finance options to meet their needs and successfully implement their plans.”

In addition to the financing options, NEC Financial Services also provides asset tracking.

“We find that many of our clients require a more robust asset tracking system than they have in-house, so we provide that service,” said Salan. “We can track assets by jurisdiction, county, state, and zip code, taking the burden from our clients while providing added value.”

Salan also said that many clients have a need for protection against technology obsolescence. This is one of the drivers for determining the right finance solution and term.

“While the length of a typical technology lease is between three and five years, we create terms based on the customer’s decision,” said Salan. “For those that obsolescence is a real issue, we can structure shorter terms so they can keep up with important technology updates to grow their businesses.”

Salan and his team work through the whole corporate lifecycle, ensuring that the technology will grow to meet current and future needs.

“It’s an advantage to our clients that we are agile and have business growth at the core of our decisions,” said Salan. “We understand how technology can help a business grow and reach the next level, so we are eager to explore those options with our clients.”

To learn how NEC Financial Services can provide technology financing on your terms, contact us today!

IT Budgets – Round 2 Means Budget Cuts…Or Does It?

Posted by Linda Graham on November 24, 2015February 1, 2016 Posted in Education, Finance, Government, Healthcare, Hospitality Tagged 100% financing technology purchases, Financing IT purchases, IT budget, IT purchasing, Leasing IT purchases, Lending, Making IT Budget decisions, NEC, NEC Financial services, NECAM, Purchasing decisions

When you spend all those hours trying to align your IT budget with company goals and fulfill the needs of your end-users for the upcoming year, it can be disheartening when the finance team asks you to cut more deeply. After all, the IT department’s needs are in alignment with company growth and strategies, not some made-up number. Fortunately, there is a way to get what you need to fulfill your obligations to end-users and still maintain a budget that finance will embrace.

Flexible Solutions for Flexible Needs

NEC Financial Services has provided IT finance solutions for more than 30 years, and during that time has supported many companies in getting their IT needs met through flexible financing options. The best part? You can purchase various IT hardware, software and associated items from multiple vendors and have NEC create a financing package customized to your specific needs.

“We believe in orchestrating the best solution for our customers so that it simplifies the overall IT purchasing process,” said Herschel Salan, vice president, NEC Financial Services. “IT acquisitions can be difficult. By simplifying the financing process with a single source, it removes some of the complexity and gives our customers an easy way to budget for their required technology.”

#IT budget doesn't have to be an issue for new #technology. Click To Tweet

Providing this type of service is a standard part of the NEC finance model. This team understands the nuances of purchasing technology, and the complexity that comes from needing to upgrade while maintaining legacy systems, or to utilize newer technology, such as cloud, while still keeping sensitive information on premise. In fact, the NEC Financial Services team goes beyond the dollars and cents, providing a common-sense approach to our customers’ technology acquisitions.

“We go the extra mile, essentially acting as a project manager or liaison,” said Salan. “Our team performs due diligence on the technology provider for the customer, so we can be sure that all parties are informed as the project comes together.”

Salan went on to explain:

“Sometimes our customer is not that familiar with a technology provider and is unsure on the best steps to take to learn more. Our service provides due diligence so the customers know the providers that they are doing business with, and will have good information to make a solid decision. This includes any red flags that may come up such as financial capacity being stretched too thin, as well as being manufacturer authorized to sell and support the products.”

Obviously, having this type of information helps buyers make a solid, secure decision on moving forward with a technology provider.

No Cookie Cutter Here

A common complaint regarding the financing of technology is how difficult it can be via traditional sources. Bankers are not technology people. “What sets NEC Financial Services apart from many of the traditional financing options are: (1) we understand how technology is a business enabler and (2) we have the ability to help enable the acquisition of the technology, “according to Salan.

Furthermore, underwriting is often standardized, making it difficult for loans to be issued unless you can find a less traditional resource. NEC Financial Services approves more than 90% of transactions submitted. How is that possible?

NEC #Financial Services approves more than 90% of transactions submitted. How is that possible? #IT Click To Tweet

“We have a proprietary credit scoring system that ensures we are making the best decisions for our customers,” said Salan. “We take the time to understand the customer’s needs and goals, and then to understand what the acquisition of the technology will do to improve and support the business. Doing so enables us to really invest in our customer’s success and future, and give them a way to finance technology that could be a real game-changer for their business.”

More Than One Way to Get that New Technology

NEC Financial Services has a multitude of finance options that allow for customers to acquire important technology, including:

Leasing Options – from Operating Leases to Finance to Own, NEC has several leasing options that support customers’ needs.
Maintenance Financing – how nice is it to have the option to finance one of the more expensive, yet critical components of a new technology purchase – maintenance?
Tech Refresh Lease – Customers can get technology updated with a simple schedule as an addendum to the master lease or finance agreement. It’s easy and gives a customer an opportunity to keep on top of technology changes.

Winning Round Two of Budget Cuts

Don’t let those rounds of budget cuts get you down. Simply find the best finance option available and get the technology you need to be successful.

“Our goal is to develop long-term relationships with customers who are growing and need a partner that really understands technology to provide financing options,” said Salan. “Technology is in our DNA, and our team is committed to providing excellent service to ensure we get our customers the technology they need to improve their businesses.

Whether it’s aligning with a major business objective, needing to replace obsolete technology, or keeping on top of rapid technology changes, NEC Financial Services has options available for you. Contact us today to learn more!