Shire Leasing has officially launched a Technology Finance division dedicated to supporting small and medium-sized enterprises (SMEs) in their quest for advanced IT solutions. This initiative is particularly significant given the rising costs associated with adopting new technologies—in 2023, the average investment in innovation for small companies exceeded £27,000 over three years, according to research from The Federation of Small Businesses (FSB). The findings reveal that 28% of SMEs view affordability as a significant barrier to technological advancement.
By establishing this division, Shire Leasing aims to remove financial obstacles for businesses looking to modernize their IT infrastructure. Despite a thriving £38 billion asset finance market in the UK last year, only £1.2 billion was directed toward IT equipment finance—a marked 6% decline from 2022. This stark contrast underscores a glaring gap in financing solutions for essential IT systems, which are increasingly critical in today’s competitive marketplace.
The Technology Finance division’s primary mission is to create accessible financing options for businesses through IT Channel Partners and Value-Added Resellers (VARs). By shifting the perception that finance can only pertain to physical hardware, Shire Leasing intends to emphasize the inclusion of software and other indirect costs. This is essential as the modern business landscape relies heavily on integrated technological solutions that go beyond mere hardware acquisitions.
Leading this new venture is ICT Sales Director Martin Ardern, a veteran with over three decades of experience in the asset finance industry. His background includes prominent roles with BNP Paribas, GE Capital, and Lloyds, where he has tailored successful finance programs in collaboration with well-known IT manufacturers. Ardern expressed optimism about the Tech Finance division, indicating that the right ICT solutions not only drive operational efficiencies but also contribute significantly to the success and scalability of SMEs.
One of the flagship offerings from this division is the Technology Lease, designed specifically for SMEs. This leasing option allows businesses to finance both the necessary hardware and associated software costs—such as licenses, support contracts, and training—under a single contract. Additionally, the Managed Rental Agreement will offer a comprehensive payment solution that consolidates various fees into a single, manageable payment structure.
As SMEs increasingly seek to upgrade their technological capabilities, the launch of this division is both timely and relevant. Businesses are not just looking for hardware; they need a holistic approach to technology financing that covers an array of solutions tailored to their specific needs. Shire Leasing’s initiative aligns perfectly with this trend, assuring that SMEs can manage their cash flow effectively while investing in the crucial tech infrastructure required for growth.
The potential impact of this funding initiative is vast. By empowering smaller businesses to overcome financial limitations, Shire Leasing is not only enhancing their operational capacities but also contributing to the broader economic landscape. Investing in new technologies often results in increased efficiency, boosted productivity, and higher competitiveness, ultimately benefiting the entire market.
With growing concerns about resilience in the face of economic challenges, this Tech Finance division can be seen as a critical enabler for SMEs aiming to remain agile and responsive. It allows businesses to adapt and innovate without the looming pressure of hefty upfront costs.
In conclusion, Shire Leasing’s establishment of a dedicated Technology Finance division presents a vital opportunity for SMEs ready to embark on their digital transformation journeys. By addressing common barriers to technology adoption, the division is positioned to foster an environment where innovation and growth can thrive.
