HR Software Supplier Leasing by Rick Carney

Article Summary - There are other purchase options than hosted, purchase or subscription. One of the negatives of purchasing a system from a HR software supplier is the large up front cost for the software, support and consulting fees. If you elect to purchase a system, you may be able to spread the payment for the product, support and services over a number of years as opposed to paying the total amount due up front. At a time when budgets are tight, purchasing using a lease option may work out better for you, your company and your HR software supplier.

HR Software Leasing by Rick Carney

Did you know that financing is available for the acquisition of your Human Resources software? A growing trend in business is to finance software acquisition due to budget constraints and the increasing cost of software and the training and implementation needed to assure a smooth conversion and implementation process. Just a few years ago software could only be leased or financed if combined with a substantial amount of hardware. Even today most leasing companies have limits on software leasing.  However, there are some companies such as Gulfstream Business Capital, Inc. in Clearwater, Florida that provide up to 60 month terms on software and services. Software such as Human Resources, Accounting and Manufacturing are among the most common software packages leased by Gulfstream. 

Reasons cited by most companies who lease their software are budget constraints and the ability to spread out the cost. Because of the man hours needed to implement a software package, services up to 40% of the total project are usually financed with most human resources software packages. If additional services are needed, a working capital component can sometimes be added to a lease to cover these additional soft costs. Some companies pay cash for part of the services and lease the balance of the software and services since the consulting services are usually an estimated number at the beginning of a project. Regardless of budgets, companies have the option of choosing how much they want to finance and for how long of term, 24 to 60 months. To further assist with a new software acquisition, initial deposits required by a supplier can be made by the respective leasing company providing the financing.  

About the author - Rick Carney, is a principal of Gulfstream Business Capital, Inc. who specializes in software leasing and the technology market. Rick has specialized in the technology market most of his 22 years in the equipment leasing industry and is a member of the Tampa Bay Technology Forum.

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