IT equipment supplier and rental solutions provider Spartan Technology Rentals has unveiled a software financing product which will provide clients with financing options for all Microsoft standalone software products.
Spartan CEO Kumaran Padayachee says the group`s strategic alliance with Microsoft SA has positioned it to offer 100% financing on Microsoft software and related peripherals through reseller and distributor channels.
Traditional financial institutions, he says, are not prepared to finance software on a standalone basis and those that do place maximum software content restrictions of 20% of a total finance value.
Spartan`s software finance offering can include financing for product implementation and licensing, Padayachee explains, adding that software products exceeding R40 000 in value can be financed over one to three years.
"Our target market is small and medium enterprises and clients with more than 50 users."
In order to qualify for financing, clients have to follow a similar procedure as for hardware financing, including credit checks and assessments, Padayachee says. Spartan will carry the risk that emanates from the product and client.
The risks associated with software finance are vastly different to a hardware transaction, he says. Thus transactions are considered in terms of the software brand and the support or maintenance the product will require.
The supplier or reseller has to be Spartan approved and the financial position of the end-user will be considered.
"We understand the risk involved and are comfortable with it. There is no risk to resellers or to Microsoft," he says.
Padayachee claims the new offering allows organisations to expedite their software compliance initiatives and decisions to acquire or upgrade software are much easier as they are not viewed as a large capital expenditure. This allows for issues around budgetary constraints to be overcome.
"So far, the response from resellers has been very positive," he says, adding that the company has sufficient capital to provide finance for the full suite of Microsoft products.
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