Every organization or business needs to have an IT system. In some organizations, a few workstations and a central server is all they need to perform the intended function. However, there are organizations that require dozens of servers, multiple large LCD screens with multi-touch capabilities as well as dozens of workstations. Setting up the IT system is an easy job for any IT firm. What is challenging is acquiring the equipment. The cost can be quite considerable, and may force an organization to seek financing. When in need of IT finance Australia residents should take their time to find the best financier. In that regard, below are key factors to consider:
i) Experience
Getting a bank to finance your acquisition of IT equipment is not easy as they may not have a great understanding of the industry. Ideally, you should choose a lender that specializes in lending to businesses and corporate entities, and has a specific product that targets clients who need IT financing. This will make the process smoother and faster.
ii) Interest Rates
This is the most crucial factor of consideration as it directly affects the cost of borrowing. The lower the interest rate the better. But you should also check the type of interest charged. Is it fixed or adjustable? Since this may be a long term credit facility, you may want to consider choosing a fixed interest rate to ensure your payments do not fluctuate if economic conditions change. Be sure to also compare other charges, such as processing fees and insurance, before choosing a lender.
iii) Repayment Period
The term of the credit facility matters a lot. You do not want to use all your income on servicing the loan as this may prevent you from growing your organization. Therefore, the ideal financier should be able to offer flexible terms. Getting a long term credit facility is recommended as your payments will be affordable, thereby increasing your chances of servicing the facility without default.
iv) Turnaround Time
When you need IT equipment for business purposes, you do not want to wait weeks or months to have your loan approved. Ideally, you should pick a lender with a track record of approving loan applications in a matter of hours or a couple of days. This will ensure that the project takes off without delays. It will also ensure you start enjoying the benefits of the new IT system sooner rather than later.
v) Reputation
The reputation of a lender matters a great deal. You do not want to get financing from a lender who has a reputation for increasing interest rates and recalling loans before they are due.
