In Business Since 2001 We accept Paypal
Home Article Directory
More from Bill Platt
"Bill Platt for Book Authors" Youtube Channel
Training for Book Authors
Other Resources for Book Authors & Publishers
FictionPlots.com (350+ Plots & counting)
Please Support Our Advertisers

 
D9 Hosting


Taking the Mystery out of Software Financing and Software Leasing

Copyright (c) 2007-2023

This view is shared by both end-users, and the developers of software. Companies who think nothing of financing a vehicle or a new computer system will stress over how they will pay for expensive new business software. And the producers of software see no need for offering a software leasing or a software financing option.

But times are changing.

Third party equipment finance companies - companies who offer small and medium size businesses equipment financing and working capital - have responded to a need for software financing and software leasing. Thus, they are starting to include software amongst the equipment they finance or lease. There is one big overriding reason for this shift:

The High Cost of Buying Software

The simple fact is this: Software can be very, very expensive. Oftentimes more expensive than the hardware that runs it.

Now, keep in mind that when we are talking about software in this way, we are generally talking about "vertical software". Vertical software is software that is written for a specific, narrow industry (this can include industry-specific point-of-sale software, ERP systems, specialized databases, etc). It is not software that's available on the shelf at your local office supply store (the software you see there, even the business programs and operating systems, are "horizontal software" - they can be used across a variety of industries, and are relatively affordable.)

A good, clear example of vertical software is an auto parts store - they use software that's specifically written for the auto parts industry. Another example is your local jewelry retailer - they likely use a point-of-sale system specifically made for the jewelry industry.

To understand how software financing and software leasing can positively affect a business, it is important to understand the advantages of vertical software first.

For most businesses, Vertical Software usually means far more efficient business processes. In the case of an auto parts store, for example, the software will already anticipate the thousands of automobile makes and models. And will almost certainly be updated every year. The jewelry store's software will differentiate the subtle differences between two diamonds by any number of categories. And so on.

In fact, these "vertical" software programs are so effective, and become so crucial to day-to-day operations, that businesses often need this type of software to remain competitive. In many cases, it's not an option to do without.

However, since the software is so narrowly focused, it usually comes with a hefty price tag. The developer will sell relatively few copies as opposed to a word processing program (which will sell in the millions), so they must get a premium for their work. Vertical software can sometimes reach five figures for a single license. This brings an obvious problem: "Businesses need the software, but it's very costly to buy outright."

And that's where software leasing and software financing come in - business don't have to "buy" it upfront.

The Advantage of Software Leasing and Software Financing The advantage of financing or leasing software is clear:

Software leasing and software financing take the huge up-front cost of new software out of the equation. Like most other business equipment, software is now beginning to be seen as a tangible asset (this was not always the case.) This means software can largely be treated as any other equipment purchase in the case of financing or leasing. A business can finance that new ERP system instead of having to budget a huge cash outlay.

This can be very beneficial to the bottom line, as software generally pays for itself over time. In fact, since "vertical" software almost always reduces the cost of doing day-to-day business, leasing or financing said software can actually create a positive cash flow right away.

But Who Offers Software Financing or Software Leasing, and how does it Work?

It's true that software developers have been very slow to embrace the business model of software financing or software leasing. They would prefer to be paid up front for their software.

Likewise, banks, being part of an "older" industry, are also largely reluctant to finance software.

However, third party equipment finance companies who specialize in small and medium sized business equipment financing often offer attractive software lease and software financing packages. What happens is the equipment finance company pays the developer in full, and then provides the software to the end user under a finance or lease agreement, often at very attractive rates. In all actuality, it's fundamentally the same as financing or leasing most other equipment.

Of course, like any other financing, the agreements can (and will) vary from traditional fixed rate financing to a "software lease" with a buyout at the end, etc. And the rates and terms also vary - your individual equipment finance company will have more details.

All in all, software financing and software leasing have definitely entered the business consciousness, and because it is so friendly to the bottom line, it is a business model that is here to stay.


About The Author: Shop Amazon - Top Gift Ideas
Software leasing and Software financing are only a few of the services provided by Crest Capital. Regardless of the size of your company, Crest Capital can provide you with the equipment financing and working capital you need to successfully grow your business. Learn about financing options that can increase your bottom line and reduce your 2007 tax bill with a free online quote today.

VOTE ON THIS ARTICLE
Needs Work >> 0 - 1 - 2 - 3 - 4 - 5 << Excellent Article

Tell our authors what you think about their article.



Top-Level Category: Computers Articles || Related Categories: Shopping Articles

10 Most Recent Articles Written by Matt Beaty

All of Author's Articles on this site:

Most Recent "Computers" Articles

To IPhone Or To IPad, That Is The Question
Written by: Dawn Carey | Distributed: 2011-06-24 | Word Count: 658 | Page Views: 6242 | Votes: 4 | Rating: 0.25
If your iPhone experience has ever left you wanting more, then the iPad may just be the scratch your itch is looking for.

Are Alienware Gaming Laptops Worth Buying?
Written by: Titus Hoskins | Distributed: 2010-12-09 | Word Count: 540 | Page Views: 9081 | Votes: 12 | Rating: 3.00
Alienware laptops have gained a large devoted fanbase, but are these high-priced gaming laptops worth buying? Discover why there are many angles to this question which you must consider before buying that Alienware laptop.

Learn How to Identify, Diagnose and Replace Damaged Laptop LCD Screens
Written by: Erwin Leona | Distributed: 2010-10-26 | Word Count: 508 | Page Views: 6019 | Votes: 5 | Rating: 2.20
Consumers with broken laptop screens will usually take their computer to an electronics repair store or replace the laptop altogether. A broken laptop screen still has a perfectly functioning machine underneath and with just a screwdriver and a manual you can replace the screen yourself and save. This task is much easier than it sounds and the job can be done in less than an hour with the proper set of instructions.

Is The Apple IPad The Perfect Student Laptop?
Written by: Titus Hoskins | Distributed: 2010-08-03 | Word Count: 816 | Page Views: 6293 | Votes: 6 | Rating: 2.17
Will the new Apple iPad turn out to be the perfect student laptop? Only a close examination of the iPad features (and missing features) will give you the answer.

Is Nvidia Optimus The Future Of Gaming Laptops?
Written by: Titus Hoskins | Distributed: 2010-07-29 | Word Count: 874 | Page Views: 5704 | Votes: 2 | Rating: 0.50
New Nvidia Optimus technology gives you switchable graphics for enhanced visuals and longer battery life for your laptop. But what will this new Optimus technology mean for the future of gaming laptops?

Has 3D Gaming Finally Arrived?
Written by: Titus Hoskins | Distributed: 2010-04-20 | Word Count: 970 | Page Views: 5689 | Votes: 7 | Rating: 1.71
Dazzle them and they will come, or will they? We all know the new 3D technology as seen in the popular film Avatar has everyone enthralled, but will 3D have the same impact on computer gaming? Are we on the verge of a visual gaming revolution?

Roles and Responsibilities of a SAP MM Consultant
Written by: Varsha Vilankar | Distributed: 2010-04-20 | Word Count: 1255 | Page Views: 13069 | Votes: 63 | Rating: 2.90
Everyday there are thousands of people who discover the prospects of a career in SAP. However, lack of knowledge often takes them to mushroom schools that have sprung up due to the high demand of SAP training. Varsha has attempted to give an easy to follow roadmap that is drawn on a timeline. Following this roadmap will ensure that students don't end up as hit-and-run victims of mushroom schools that are run by unethical businessmen and not educators. Midst of the weakening economy and employment uncertainty, the last thing you want is for someone to rob you of your savings and precious time. Read this article to stay in touch for an amazing career in SAP.

New Trends In Gaming Laptops
Written by: Titus Hoskins | Distributed: 2010-03-10 | Word Count: 695 | Page Views: 6253 | Votes: 2 | Rating: 0.50
Just what are the latest new trends in gaming laptops? Will greater portability and 3D features become the latest trends in gaming laptop design... read to find out.

Gaming Laptops Goes Mini-Me (Dell Intros Alienware M11x - The World's First Gaming Netbook)
Written by: Titus Hoskins | Distributed: 2010-02-10 | Word Count: 601 | Page Views: 5203 | Votes: 2 | Rating: 0.50
The whole concept of a gaming netbook is an intriguing idea - take your gaming with you, no matter where you go. But can the Dell Alienware M11x, which is being described as the World's First Gaming Netbook, really capture the hearts and pocketbooks of serious gamers?

Gaming Laptops - 5 Reasons To Put Them On Your Christmas List
Written by: Titus Hoskins | Distributed: 2009-12-30 | Word Count: 840 | Page Views: 5193 | Votes: 5 | Rating: 2.00
The Holiday Season is just around the corner and everyone will be considering what to give as gifts this Christmas. If you have more than a little cash to spare and you're operating in a Non-Scrooge mode, here are 5 reasons why giving a gaming laptop should be high on your list.

Most Viewed "Computers" Articles

SAP HR Training
Written by: David Sholmire | Distributed: 2008-04-30 | Word Count: 716 | Page Views: 16828 | Votes: 82 | Rating: 2.26
Learning SAP HR or (new name HCM - Human Capital Management) module is not difficult at all if you have a qualified and experienced instructor who loves to teach; If you have the best of material that is geared towards certification; If you have system that is carefully tweaked for optimal performance and if you have an environment that is conducive to total learning.

Roles and Responsibilities of a SAP MM Consultant
Written by: Varsha Vilankar | Distributed: 2010-04-20 | Word Count: 1255 | Page Views: 13069 | Votes: 63 | Rating: 2.90
Everyday there are thousands of people who discover the prospects of a career in SAP. However, lack of knowledge often takes them to mushroom schools that have sprung up due to the high demand of SAP training. Varsha has attempted to give an easy to follow roadmap that is drawn on a timeline. Following this roadmap will ensure that students don't end up as hit-and-run victims of mushroom schools that are run by unethical businessmen and not educators. Midst of the weakening economy and employment uncertainty, the last thing you want is for someone to rob you of your savings and precious time. Read this article to stay in touch for an amazing career in SAP.

Are Alienware Gaming Laptops Worth Buying?
Written by: Titus Hoskins | Distributed: 2010-12-09 | Word Count: 540 | Page Views: 9081 | Votes: 12 | Rating: 3.00
Alienware laptops have gained a large devoted fanbase, but are these high-priced gaming laptops worth buying? Discover why there are many angles to this question which you must consider before buying that Alienware laptop.

How To Choose The Best Student Laptop?
Written by: Titus Hoskins | Distributed: 2007-07-20 | Word Count: 861 | Page Views: 7482 | Votes: 8 | Rating: 1.00
This article lists the different factors which make up the perfect student laptop. If you're considering purchasing a student notebook or laptop in the very near future, read this article first...

2008 Application Development Trends: 'Building for Change' To Accommodate Today's Shifting Business Conditions
Written by: Anne Sych | Distributed: 2008-02-06 | Word Count: 441 | Page Views: 7415 | Votes: 18 | Rating: 2.28
Software developers and businesses alike can expect to see significant changes in the year ahead in how applications are developed. Research analysts are projecting that 2008 will reveal a shift in the conventional development process, resulting in more flexible solutions that can evolve with a company's changing needs.

Top 5 Gaming Laptops - Quick Roundup
Written by: Titus Hoskins | Distributed: 2008-11-10 | Word Count: 1313 | Page Views: 7049 | Votes: 11 | Rating: 2.64
In the market for a gaming laptop? Here are 5 Top Gaming Laptops you might want to put on your short list. Quick round-up of the latest gaming rigs...

CISSP Advanced Security Certification Can Lead to a Lucrative Career for the Committed Computer Security Professional
Written by: Frank Pines | Distributed: 2009-07-07 | Word Count: 623 | Page Views: 6760 | Votes: 14 | Rating: 2.14
Within months of 9/11, computer security became one of the hottest career choices in Information Technology (IT) departments around the world.

Is The Apple IPad The Perfect Student Laptop?
Written by: Titus Hoskins | Distributed: 2010-08-03 | Word Count: 816 | Page Views: 6293 | Votes: 6 | Rating: 2.17
Will the new Apple iPad turn out to be the perfect student laptop? Only a close examination of the iPad features (and missing features) will give you the answer.

New Trends In Gaming Laptops
Written by: Titus Hoskins | Distributed: 2010-03-10 | Word Count: 695 | Page Views: 6253 | Votes: 2 | Rating: 0.50
Just what are the latest new trends in gaming laptops? Will greater portability and 3D features become the latest trends in gaming laptop design... read to find out.

To IPhone Or To IPad, That Is The Question
Written by: Dawn Carey | Distributed: 2011-06-24 | Word Count: 658 | Page Views: 6242 | Votes: 4 | Rating: 0.25
If your iPhone experience has ever left you wanting more, then the iPad may just be the scratch your itch is looking for.

Highest Ranked "Computers" Articles

Overclocking And Gaming Laptops: Getting Higher Performances For Less Money
Written by: Titus Hoskins | Distributed: 2008-08-14 | Word Count: 710 | Page Views: 4467 | Votes: 6 | Rating: 3.33
Many gamers and computer enthusiasts use "Overclocking" to achieve higher performances from their computers for less money. Learn about overclocking and discover how you can also get higher performances for less money...

What Is The Difference Between Netbooks And Laptops?
Written by: Titus Hoskins | Distributed: 2009-10-21 | Word Count: 698 | Page Views: 5717 | Votes: 5 | Rating: 3.00
What are the main differences between netbooks and laptops? Which one should you buy? If you're considering buying a laptop in the near future, read this informative article first!

Are Alienware Gaming Laptops Worth Buying?
Written by: Titus Hoskins | Distributed: 2010-12-09 | Word Count: 540 | Page Views: 9081 | Votes: 12 | Rating: 3.00
Alienware laptops have gained a large devoted fanbase, but are these high-priced gaming laptops worth buying? Discover why there are many angles to this question which you must consider before buying that Alienware laptop.

Roles and Responsibilities of a SAP MM Consultant
Written by: Varsha Vilankar | Distributed: 2010-04-20 | Word Count: 1255 | Page Views: 13069 | Votes: 63 | Rating: 2.90
Everyday there are thousands of people who discover the prospects of a career in SAP. However, lack of knowledge often takes them to mushroom schools that have sprung up due to the high demand of SAP training. Varsha has attempted to give an easy to follow roadmap that is drawn on a timeline. Following this roadmap will ensure that students don't end up as hit-and-run victims of mushroom schools that are run by unethical businessmen and not educators. Midst of the weakening economy and employment uncertainty, the last thing you want is for someone to rob you of your savings and precious time. Read this article to stay in touch for an amazing career in SAP.

Microsoft Excel For Online Marketers
Written by: Joe Cleland | Distributed: 2008-10-07 | Word Count: 749 | Page Views: 4284 | Votes: 7 | Rating: 2.71
Many folks mistakenly believe that Microsoft Excel is strictly for accountants and bookkeepers, but it is really so much more. The fine programmers at Microsoft have tried to think ahead to how people would like to use spreadsheets, and they incorporated most of that additional functionality into Microsoft Excel.

Maintaining and Troubleshooting Your Laptop Battery
Written by: Bill Platt | Distributed: 2008-06-17 | Word Count: 1038 | Page Views: 6178 | Votes: 21 | Rating: 2.67
The actual life of a laptop battery will vary with computer usage habits. For most users, it is not uncommon to experience differences in battery life, of anywhere from just under one hour to over two hours in each sitting. If you are experiencing shorter battery life cycles, say 10 to 15 minutes, it may not yet be time to order that new battery.

The Check Point Certified Security Administrator (CCSA) Certification Will Prove Your Worth
Written by: Frank Pines | Distributed: 2009-07-15 | Word Count: 500 | Page Views: 5817 | Votes: 15 | Rating: 2.67
Are you looking for a career in Information Technology? The Check Point Certified Security Administrator (CCSA) certification is a good choice to add to your credentials as a Network Security specialist. The CCSA has not only become a highly recognized and sought after credential to help you get the job, it verifies your knowledge and improves your practical application skills to help you keep the job.

Top 5 Gaming Laptops - Quick Roundup
Written by: Titus Hoskins | Distributed: 2008-11-10 | Word Count: 1313 | Page Views: 7049 | Votes: 11 | Rating: 2.64
In the market for a gaming laptop? Here are 5 Top Gaming Laptops you might want to put on your short list. Quick round-up of the latest gaming rigs...

Toshiba Infuses Gaming Laptops With Triple Nvidia GPUs
Written by: Titus Hoskins | Distributed: 2008-12-18 | Word Count: 597 | Page Views: 4907 | Votes: 8 | Rating: 2.63
Toshiba stirs up the laptop gaming world with the first laptop sporting triple NVIDIA GPUs or graphics cards. Have the best of both worlds - powerful gaming performance and quiet operations in one gaming laptop... read more.

What Makes Online Games more Fun?
Written by: Jon Wuebben | Distributed: 2006-05-25 | Word Count: 679 | Page Views: 5375 | Votes: 14 | Rating: 2.50
Role playing games, puzzle games, traditional games like chess and backgammon - they are all becoming big in the online world, with more and more people playing every day. So, what makes online games more fun and what are the specific benefits one can enjoy?











Download an eBook today
 
Directory Navigation
Locate By Category:

ALL Categories
Arts & Crafts
Arts & Entertainment
Automotive
Business - Offline
Business - Online
Career
Computers
Education
Family
Finance
Food & Drink
Health & Wellness
Home & Garden
Humor
Internet
Nature & Pets
Real Estate
Religion
Self Improvement
Shopping
Society
Sports & Recreation
Technology
Travel & Leisure
Uncategorized
World Events
Writing & Speaking

Change Number of Results:
50 - 100 - 200 - 500
Article Reprint Rights
Creative Commons License

This work is
licensed under a
Creative Commons
License


You are not required to show the creative commons license notice when you reprint this work.
Article Statistics
Word Count: 829

Total Views: 3103

Article Rating: 1.67 of 5
Votes Cast: 9

More Articles By Author:



Last Distribution Date:
2007-12-21 10:48:00

Internal ID: #5583





All Articles are Copyright © 2001-2023 of the Defined Authors.

All other material and images on this site are:
Copyright © 2001-2023, ThePhantomWriters.com