Available by Phone: 9am-6pm CST, Monday to Friday (405) 780-7745, Ask for Bill Platt --- Contact Us by Email
	Home      Purchase Ghost Writing      Purchase Article Distributions      Services in a Nutshell Search Articles for Reprint
Copyright Enforcement & Reprint Check Tool: Article Reprints In Google Article Reprints In Yahoo! Article Reprints In MSN Article Reprints In Widow Search Article Reprints In WindSeek Article Reprints In AllTheWeb Article Reprints In AltaVista Original Distribution Date: 2007-12-21 10:48:00 Word Count: 829 Times Viewed: 129 Article Rating: 3.00 Votes Cast: 1 Google PageRank: 0 PR Last Checked: 2007-12-21 Author Overall Stats: Times Viewed Overall: 129 Author Overall Rating: 3.00 Votes Cast Overall: 1 More Articles By This Author: Matt Beaty's Website Articles On This Website Make Money Online FREE Getting Started Package Available Would You Like To Own Your Own Article Directory? We Recommend Article Friendly. Save Money on Auto Parts Sign up to sell more than a dozen top-selling products Download the Niche-Browser for FREE! Mobile Phone Review Do You Need To Learn More About Cars? Review Automotive Information from a number of authors, by clicking here. http://thephantomwriters.com/free_content/db/b/software-financing-software-leasing.shtml Taking the Mystery out of Software Financing and Software Leasing Copyright © 2007-2008 Matt Beaty 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: 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. BlinkBits Blinklist BlogMarks Co.mments Connotea Delicious Delirious Digg it Fark it Furl This Link A GoGo Magnolia Netvouz Raw Sugar Reddit Scuttle Seed This Shadows Simpy Smarking Spurl This TailRank Wists Feed Me Links Technorati Cosmos YahooMyWeb VOTE ON THIS ARTICLE Needs Work >> 0 - 1 - 2 - 3 - 4 - 5 << Excellent Article Tell our authors what you think about their article. Automatically Post This Article To Your Blog by inserting your Email-To-Blog Address, as can be set up in your Blogging software: "Link Back To This Article" Copy-And-Paste Are You Using This Article? We want to know about it. HTML Article Copy-And-Paste <font size=+2>Taking the Mystery out of Software Financing and Software Leasing</font><BR> Copyright © 2007-2008 Matt Beaty<BR><BR><BR> 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.<BR><BR> <b>But times are changing.</b><BR><BR> 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:<BR><BR> <b>The High Cost of Buying Software</b><BR><BR> The simple fact is this: Software can be very, very expensive. Oftentimes more expensive than the hardware that runs it.<BR><BR> 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.)<BR><BR> 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.<BR><BR> To understand how software financing and software leasing can positively affect a business, it is important to understand the advantages of vertical software first.<BR><BR> 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.<BR><BR> 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.<BR><BR> 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."<BR><BR> And that's where software leasing and software financing come in - business don't have to "buy" it upfront.<BR><BR> The Advantage of Software Leasing and Software Financing The advantage of financing or leasing software is clear:<BR><BR> 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.<BR><BR> 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.<BR><BR> <b>But Who Offers Software Financing or Software Leasing, and how does it Work?</b><BR><BR> 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.<BR><BR> Likewise, banks, being part of an "older" industry, are also largely reluctant to finance software.<BR><BR> 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.<BR><BR> 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.<BR><BR> 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. <BR><BR> <B><I>About The Author:</I></B><BR> <table border=1 cellpadding=4><tr><td><font size=2 face=verdana> <a href=http://www.crestcapital.com/software_financing target=_blank>Software leasing and Software financing</a> are only a few of the services provided by <a href=http://www.crestcapital.com/ target=_blank>Crest Capital</a>. 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 <a href=http://www.crestcapital.com/equipment_lease_calculator target=_blank>free online quote</a> today. </font></td></tr></table> <BR><BR>Read More Articles from Matt Beaty:<BR><font size=1 face=verdana><a href=http://www.crestcapital.com/equipment_loan_media target=_blank>Matt Beaty's Articles on Crest Capital</a><BR>Article Source: <a href=http://thePhantomWriters.com/ target=_blank>thePhantomWriters Article Submission Service</a></font><BR><BR> TEXT Article Copy-And-Paste Taking the Mystery out of Software Financing and Software Leasing Copyright © 2007-2008 Matt Beaty 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. ============================================================ Software leasing and Software financing are only a few of the services provided by http://www.CrestCapital.com/ 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 http://www.crestcapital.com/equipment_lease_calculator free online quote today. ============================================================ Read More Articles From Matt Beaty: http://www.crestcapital.com/equipment_loan_media http://thePhantomWriters.com/free_content/d/index.shtml#Matt_Beaty Article Description Copy-And-Paste The very terms 'software leasing' and 'software financing' are confusing to many businesspeople. This is due to the fact that software is typically not seen as something that is purchased over time. But times are changing. Article Keywords Copy-And-Paste *** Digital Reprint Rights *** If you publish this article in a website/forum/blog, You Must Set All URL's or Mailto Addresses in the body of the article AND in the Author's Resource Box as Hyperlinks (clickable links). Links must remain in the form that we published them. Clean links should point to the Author's links without redirects having been inserted into the copy. You are not allowed to Change or Delete any Words or Links in the Article or Resource Box. Paragraph breaks must be retained with articles. You can change where the paragraph breaks fall, but you cannot eliminate all paragraph breaks as some have chosen to do. Email Distribution of this article Must be done through Opt-in Email Only. No Unsolicited Commercial Email. You Are Allowed to format the layout of the article for proper display of the article in your website or in your ezine, so long as you can maintain the author's interests within the article. You may not use sentences from this article as an input for any software that steals sentences from others in order to build an article with software. The copyright on this article applies to the "WHOLE" article. *** Author Notification *** We ask that you notify the author of publication of his or her work. Matt Beaty can be reached at: matt.beaty@thephantomwriters.com *** Print Publication Reprint Rights *** If you desire to publish this article in a PRINT publication, you must contact the author directly for Print Permission at: matt.beaty@thephantomwriters.com 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.) Get Customized Advertising Plates for Your Vehicle. Advertise Your Online Business While You are Travelling from Place to Place. Unless Otherwise Noted, All Copy and Images are: Copyright © 2001-2008, Bill Platt, thePhantomWriters.com thePhantomWriters Ghost Writing Services thePhantomWriters Article Submission Services thePhantomWriters Blogging Services thePhantomWriters Article Writing Advice Blog Website Properties owned by Platt Services, Inc.: Links And Traffic - Guaranteed Link Development Services Stewart Consultants Perl & PHP Software Directory Original Content from Pen Circles Right Blinker Search Engine The Historical Wild West | Bill-Platt.com The Audio Video Cabling Guide | Your Domain URL Blogger Support | Double-Eagles | Windstorm Computing Automotive Information Humor Sites Owned by Us: Driving to California (Humor) Alien-Experiences Merchandise Blogs Owned by Us: Bill Platt Speaks Up | Byte-Sized Marketing Tips Blogger/BlogSpot "Unanswered" Support Issues Printer Troubleshooting and Tips Website Properties owned by Friends: Invisible MBA - Educational Articles | Super Home Ideas Marketing and Services provided by: Bill Platt and Platt Services, Inc. 2117 Valley Road Stillwater, Oklahoma 74075 (405) 780-7745 (office) 9am - 6:00pm CST, Monday Through Friday Last Update: 2007-12-21 10:48:00