NHS squanders £41.5 million a year on poor IT financing deals Friday 25 May 2007 PDF Print 12pence in every £1 borrowed to finance IT purchases & leases is needlessly wasted on admin costs, charges and inflated interest rates. Poor IT financing costs the NHS more than £166,000 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. If the NHS cut out the broker middleman and sourced IT finance via independent online marketplaces it could increase its IT spending power by £41.5million a year (equivalent to £280,000 per NHS Trust). 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: o Executive and administrative time o Office costs and legal representation o Broker fees o Finance provider charges o Higher interest rates The costs for three different scenarios – sourcing finance via a broker, via a technology vendor and direct with finance providers – were then compared against sourcing via an online IT finance marketplace to reveal the ‘cost of poor IT financing’. “Sourcing specialist IT finance can be a complex task, made all the more difficult by the lack of transparent advice and information. Unsurprisingly then, NHS procurement units are falling foul of hidden costs and are unlikely to get the best deal possible,” said Suki Gallagher, CEO of Smartfundit.com . “Our research underscores the financial imperative for looking at alternative ways of sourcing finance, such as letting finance providers bid for your businesses online. It’s about time buyers took back control and turned IT financing into a borrowers’ market.” - A copy of the research and cost model is available on request - NOTES TO EDITORS: Smartfundit.com is an online marketplace for financing IT. Smartfundit.com means finance on demandtm 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. 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 Surrey, UK, with a US office in San Francisco. Visit http://www.smartfundit.com for more information. 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: Health, Business & Finance, Public Sector, Third Sector & Legal, Computing & Telecoms, for more information visit http://pressreleasewire.responsesource.com/about.