Technology companies unlock £498million sales opportunity by attacking the cost of poor financing Monday 21 May 2007 PDF Print 12pence in every £1 borrowed by customers to finance IT purchases & leases is needlessly wasted on admin costs, charges and inflated interest rates. If UK technology vendors and resellers cut out the middleman and sourced IT finance via independent online marketplaces, they could increase the collective IT spending power of their customers by £498million a year. Poor IT financing costs UK businesses more than £1.9million every working day. For every £1 borrowed to finance IT purchases and leases, 12pence is needlessly wasted on admin costs, charges and paying higher than necessary interest rates. These are the headline findings of research conducted by financial analysts at Smartfundit.com®. Using proprietary data as well as government and industry statistics, Smartfundit.com modelled the various costs involved in sourcing IT finance, including: Executive and administrative time Office costs and legal representation Broker fees Finance provider charges Higher interest rates The costs of using traditional approaches to sourcing financing were then compared against sourcing via an online IT finance marketplace to reveal the 'cost of poor IT financing'. According to the Smartfundit.com research model, the UK National Health Service wastes as much as £41.5million a year and the government-funded education sector loses more than £26.6million a year. "Traditional sources of IT financing penalise both technology vendor and end-customer. Poor deals reduce customer spending power and eat into revenue opportunities," said Suki Gallagher, CEO of Smartfundit.com. "By enabling finance providers to conduct business online and eliminate the inefficiencies and unnecessary costs of sourcing finance, technology companies help their customers afford more, faster, and without having to increase their budgets. It's a complete win-win for both parties." NOTES TO EDITORS: Smartfundit.com means finance on demand™ for the world's technology through an independent, open platform that brings finance providers, technology vendors and businesses together. The site cuts out the middleman and provides a fast, easy and secure way for companies to source flexible IT leasing finance. Since launching in January 2006, Smartfundit.com has been used in the funding of technology purchases totalling more than £200million ($400million). Smartfundit.com subscribers range from small to large companies including blue-chip technology vendors such as Oracle, Microsoft, Readsoft, Computer Services Group, Infor: K3, Morse and Torex, and end-customers such as Barclays, Institute of Payroll & Pensions Management, British Nuclear Group, Spinvox and Trutex. The company is privately held and is headquartered in Frimley, Surrey, UK. Visit www.smartfundit.com. For further information on Smartfundit.com, to arrange an interview or request photography, please contact: Lisa O'Connor or Dan Warren at Nelson Bostock Communications Phone: +44 (0)20 7229 4400 Fax: +44 (0)20 7792 7431 Email: firstname.lastname@example.org / email@example.com Web: www.nelsonbostock.com This press release was distributed by ResponseSource Press Release Wire on behalf of Smartfundit.com in the following categories: Business & Finance, Computing & Telecoms, for more information visit http://pressreleasewire.responsesource.com/about.