Payment Plan
Capitas Finance treads where other funders fear to go
It is a fact that the number of financing providers in this area is limited - and so are their capabilities and offerings. Similar to an unsecured loan, this facility structure is generally used to finance bespoke software development and services initiatives.
Capitas Finance stands apart, offering credit-qualified clients a long-term financing strategy with flexible funding options and competitive rates that can help manage risk, improve cash flow and reduce costs. With bespoke software and services financing, you can hold onto your cash longer and use it for other investments - or simply use the facility to provide a financial cushion.
Payment can be made either directly to you in full, or alternatively, to the vendor. Whatever you purchase belongs to you. The advance is not secured on your debtor book or tied to a fixed asset.
Features and benefits of Payment Plan:
- Turn large upfront costs into affordable monthly payments
- Match cost outlays to projected benefits
- Improve budget management with predictable costs
- Increase return on investment (ROI); lower total cost of ownership (TCO)
- Accelerate project approval and implementation
- Preserve cash and credit lines for more strategic investments
- Fixed rate agreement allowing you to budget with certainty
Rental Plan
Acquire your software at minimum operating costs
Renting software licenses provides options that outright purchase cannot. You pay rent rather than expense depreciation and can upgrade to new products and the latest software updates as they become available. Rental structures aid cash flow and make ‘off-balance sheet’ funding possible.
Features and benefits of Rental:
- Off-balance sheet reporting improves liquidity and solvency ratios such as current ratio, debt-to-equity, and interest cover
- Rentals are structured according to your cash flow
- Rentals can be treated as an operating expense and fully allowable against taxable profit
- As the software consideration is treated as ‘off’ balance sheet we will claim the capital allowances and reflect this in your rentals
- Off-balance sheet funding means no requirement to depreciate
Finance Lease
All the benefits of ownership without the burden
Financially and operationally, many companies have found that simply leasing or renting software licenses enables them to preserve cash and credit lines, reduce costs, simplify budgeting, and speed implementation.
A Finance Lease agreement gives you the full use of the software for an agreed period of time for an agreed periodic rental. It is a popular flexible method of funding both operating and application software as it offers all the practical benefits of ownership without any of the potential burdens. Leasing enables you to adapt more quickly to changing competitive environments, and current e-business strategies underscore the importance of access to flexible and competitive financing options.
Features and benefits of Finance Leasing:
Flexible repayment structures give you immediate and full use of the software for a minimal outlay
- Services can be included within the financing arrangement
- Rentals can be structured to reflect cash flow requirements
- Fixed interest rate provides certainty of repayments and assists budgeting
- Rentals can be offset against taxable profit
- VAT is paid on the rentals not the purchase price
- The lessor claims writing down allowances, and these are reflected in the rentals you pay
- Retains existing credit lines and gives you a new source of credit for current and future need
With leasing, customers are better able to manage technology cycles and their computer equipment budgets.*
*Source: Computer Reseller News
Software Finance
Turn up-front licence costs into affordable monthly payments
“With financing, your payments are spread over the lifetime of a project, so that you pay for the systems and software as you realise the benefits” ... Talk to Capitas!
Software is considered by law to be “an intangible economic asset”, and this frequently makes the financing of software a problem. Software licences are only rarely accepted as security and the high implementation costs associated with projects cannot be used as security for loans.
Capitas Finance offers you a simple and economic way of distributing your costs for software licences over the entire useful life of the product. You can finance virtually any type of operating or application software from software vendors of your choice, either as a stand-alone acquisition or in combination with hardware, services and support.
We offer flexible facility structures, customised payment schedules, total solution financing for all aspects of your system proposal, simplified contracts and single-invoice simplicity for all your needs.
Financing IT is an accepted way of doing business… but clients are increasingly discovering the advantages of financing software and services. In the process, they are making software and services financing one of the fastest growing segments of the IT financing industry.