Leasing is everywhere
Cloud subscription models, music streaming services, software products; leasing is everywhere today in one form or another.
Consumers used to be heavily reliant on purchasing product-based, single-purchase assets. Today, however, the very way that we acquire and use assets is undergoing constant transformation. People don’t necessarily want the finished product – they’d much rather be involved in the ongoing development process, subscribed to a constantly improving business that listens to their feedback. Spotify, Amazon Prime, even dating apps – all of these are examples of continuously improving subscription-based services.
The same can be said for businesses.
Owning assets, once viewed as a vital part of any commercial operation, is becoming less and less relevant. Instead, decision-makers are happier to borrow, or lease, equipment and services, using these goods and services to stay at the cutting edge of technology and build future success.
The role of technology in business innovation
Technology is crucial to any successful business innovation strategy. And access to the hardware and software a business needs cannot be underestimated. One business found itself so bogged down by legacy technology and systems that it was spending 80% of its IT budget on fixing past mistakes, and only 20% on innovating for the future.
That’s because technology also swiftly becomes obsolete, losing its edge and hamstringing potential innovation. Businesses need to stay mobile if they want to innovate on the fly. Which is why leasing and innovation go hand in hand.
Financing IT assets – the perfect instrument
Leasing is the perfect instrument for financing the latest IT and software. In a matter of years, most IT assets simply won’t hold their value, and software is continually evolving.
Which raises several questions, such as what happens when new processes emerge? Or if an organisation needs to pivot its strategy? Fortunately, leases can be set to a similar time frame as the lifespan of a piece of technology. In fact, there are a few ways leasing can help a business to stay innovative.
By choosing to finance leasing through a partner like GRENKE UK, businesses can:
Enlist the latest tech to remain innovative
Technology is expensive. And the latest technology even more so. 45% of SMEs in the UK believe that using the latest technology is not currently in their spending forecasts. So, what’s the solution?
Leasing, of course. Leasing equipment means monthly repayments rather than a lump sum, meaning organisations can afford better tech than they otherwise might be able to afford all at once.
And the latest technology, across any industry from retail to manufacturing, telecoms to education, allows businesses to work more efficiently and to a higher standard – saving time and money in the long run and ensuring a business can take on more projects.
Ensure the best flow of cash to reinvest in other areas of the business
One of the major benefits of leasing repayments is cash flow, as equipment is paid for in instalments. By partnering with GRENKE, organisations unlock their cash flow to invest in innovation.
This might take the form of investing in organisational structure, or team-building cultural days out. It might mean new staff to bring in new skills to the business, or pay rises to keep the top performers in place. All of these are forms of innovation that will ensure a business stays ahead of its competitors.
Simplify invoicing from multiple vendors
Leasing alone can be complicated. If a business has multiple leasing partners, it can become a complicated process to track and pay multiple invoices. Partnering with GRENKE removes this obstacle, simplifying invoicing from multiple vendors into an easy-to-use online system.
It’s an innovation in itself – but the real upside is that it saves time that can be better spent focusing on fine-tuning financial processes and ensuring a business is running as smooth as possible.
We offer our partners a handy Master Lease Agreement, giving them the flexibility to invest in multiple assets. If a business has a shopping list of items over the course of a year, it can put all its equipment needs in one easy to use Master Lease and even enjoy preferential terms.
Leasing and innovation – chicken and egg?
Leasing itself is an innovation.
At a certain point in time, people decided they had assets lying around that other people could be using, and that they could be making money from these assets rather than letting them devalue.
As the pace of technology has accelerated at an exponential rate, leasing has come into its own – allowing businesses to keep pace with this innovation, and as a result, innovate in their own industries.
Leasing is what allows a business to navigate these technological advances without needing huge lump sums of cash in the business at any given time. And this also gives a business more capital to reinvest in other innovations within a company – such as Research & Development, or digital tools to help employee productivity. Innovation goes well beyond technology and into organisational structure.
And so it goes round – innovation and leasing, hand in hand.Innovation is right around the corner. Start your leasing journey with GRENKE today.