Budget
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“Unfortunately we have used our entire Capex budget for this year" Given what we have already said regarding the nerves inherent with any major purchase, many organisations quite rightly agree plans and budgets many months and often years in advance. Whilst this process can be very effective when considering cars, furniture, copiers, buildings etc., it can be very limiting when it comes to ICT assets due to the speed at which developments occur and obsolescence sets in. Writing the cheque out makes these acquisitions items of Capital Expenditure. With fixed budgets to be adhered to, you often have your hands tied over when you can adopt new technology and the leading edge systems that you desire. By changing the acquisition to a rental, rather than purchase option, the system can be acquired out of your Revenue Budget. Revenue items include hiring temporary staff for holiday or sickness cover, renting fans when it's too hot, etc. It has to be a far more flexible budget because it has to cater for the unexpected circumstances that all organisations experience whilst operating. A department head with Capex sign-off of £10,000.00 could in theory sign-off a rental for a system costing nearly 5 times that (i.e. £50,000 per annum). In addition, facilities can also be structured to allow for payments to be stepped or even deferred. In other words, you can get your system now, but start off making relatively small payments during the early part of the agreement or even make no payments whatsoever. Call our sales team now on 0800 3196032 or email sales@northernstar.co.uk to find out more about how we can help finance your IT purchases.
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