South West businesses squander £38million a year on poor IT financing deals Tuesday 26 June 2007 PDF Print 12 pence in every £1 borrowed to finance IT purchases & leases is needlessly wasted on admin costs, charges and inflated interest rates. Poor IT financing costs South West businesses more than £760,000 every working week. 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 businesses in the South West cut out the broker middleman and source IT finance via independent online marketplaces they could collectively increase their IT spending power by £38million a year - enough money to purchase 108,883 laptops, which would stack almost 33 times the height of Salisbury Cathedral. 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 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, businesses 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 businesses took back control and turned IT financing into a borrowers’ market.” The table below shows the cost of poor IT financing in the UK: England - £425,733,138 Wales - £19,275,513 Scotland - £40,085,199 Northern Ireland - £11,255,523 NOTES TO EDITORS: 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 £250million ($500million). 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 the UK with offices in San Francisco, USA. For further information on Smartfundit.com, to arrange an interview or request photography, please contact our PR Department: Phone: +44 (0) 845 686 0510 Fax: +44 (0) 845 686 0509 Email: firstname.lastname@example.org Web: www.smartfundit.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.