Computer Finance – How, Why and Who?

You’ve made the decision to get your latest computer on finance – and why not, it’s going to do wonders for your cash flow and ensure you get the latest machine.

But how to go about it? Do you go to the computer manufacturer direct? Do you go to the bank? Do you approach a specialist computer finance company? In this article, we look at the different routes available to you to get your computer.

Traditionally, the first place you went when looking for finance would be your bank manager. Computer finance is no different – and your bank will undoubtedly be only too happy to help. But beware of the hidden pitfalls. Banks will generally only lend your business a set amount – and any kind of lending it makes will count towards this. The current economic climate makes banks even tighter on their lending criteria. A tax-deductible leasing agreement, rather than a bank loan, could make more sense.

A number of manufacturers offer finance or computer leasing deals. Apple, for example, offers two options to professional UK customers called “Finance Lease” and “Residual Lease”. If you are happy to be locked into a single manufacturer, these can be worth a look – they often provide upgrade options as well, to ensure that you always have the latest IT equipment. But you will be limited to that manufacturer’s computer equipment so this may not be the best route to go for custom solutions, or where you need a piece of hardware that a manufacturer can’t provide.

Resellers have now entered this market as well, though they generally can’t match the specialist finance companies for flexibility and high APRs are typical.