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Rapidly improve your return on investment

SAP Financing

Small and midsized business owners and managers recognise the importance of implementing business management solutions to optimise their operational efficiencies. However as capital becomes scarce and financial institutions tighten credit, SME’s face stalled or cancelled IT projects even though they may remain crucial to their business needs.

SAP have teamed up with BNP Paribas to offer a real solution to this common problem. Frontline are pleased to introduce SAP Financing.

The SAP Financing service helps solve this issue by eliminating two major concerns for IT investment– cash flow and access to capital. The SAP Financing service helps you overcome the credit crunch without interrupting your cash flow.

Unlike most financing services, SAP Financing can include all software, hardware, maintenance, and service costs associated with a new SAP solution.

SAP have teamed up with BNP Paribas Leasing Solutions to offer financing packages for UK SME’s looking to undertake a SAP project. BNP Paribas Leasing Solutions is a European leader in business technology finance and one of the

best rated banks in the world (Rated AA– by Standard & Poor’s)

BNP Paribas have one of the largest international networks with operations in more than 80 countries and over 200,000 employees. BNP Paribas has had a presence in the UK for over 130 years and London is the banks second global headquarters.

Who are BNP Paribas?

The SAP Financing service is all inclusive, covering SAP and non-SAP software, services, maintenance, hardware costs, and even internal expenses associated with the

project, allowing you to more easily control cost. SAP Financing allows you to begin implementing SAP

solutions for your business now.

The bank for a changing world

Benefits to You

You can access the technology that your business needs now, without making a significant initial capital outlay. SAP Financing makes cost of ownership transparent and predictable over the life of the project.

With SAP Financing you can:

Keep bank credit lines intact

Easily match payments to business benefits

Control costs and budgets with a predictable payment plan

Effectively manage the IT lifecycle

Take advantage of potential tax benefits

Enjoy greater financial flexibility by tailoring payments to meet your cash flow requirements

Preserve your own working capital for operational and strategic needs

Improve return on investment on your SAP project

Who uses Finance

The vast majority of profit and non-profit organisations in the UK use lease finance to invest in their business infrastructure. Commonly financed assets include the company car fleet, photocopiers, office furniture, and telecommunications equipment.

Financing is becoming an increasingly popular technology procurement tool, partly driven by the on-demand and subscription payment model promoted by leading technology vendors. In a recent study, businesses listed the following reasons why they chose lease finance to manage their technology estate:

97% of survey participants cited protection against technology obsolescence

76% of survey participants said leasing freed up capital for other uses

75% of survey participants used leasing because of the discipline it imposes on equipment

replacement

73% of survey participants said leasing enabled proper equipment disposal

73% of survey participants cited the opportunity to better balance project costs with

benefits

Common Objections to Finance…

“We are cash rich and therefore do not need to finance” Although you may have available funds as a business, if you spread the cost of your IT solution, your cash can be re-used elsewhere within the organisation to further support your businesses

strategy. Generally we find businesses use a variety of financing tools such as loans, leases, mortgages or venture capital. Industry research shows that lease financing for technology investment lowers

the Total Cost of Ownership and helps with better management of your IT estate.

“I don’t want to pay the interest charges associated with financing”

There is an opportunity cost with the alternative. Use cash and you are essentially taking a chunk of your most precious commodity out of your business on day one. By spreading the cost of the technology investment, you are paying for it over time and realising a quicker return on investment.

“I don’t own the solution”

That is true, however you do retain full economic ownership and full unrestricted access to the solution . With finance, you get access to the exact solution your business needs now paid for on a ‘Pay As You Use’ basis.

“It looks too expensive, I can get better rates from my bank or I’ll stick with a

cash purchase” The SAP Finance option is not really comparable to a standard bank loan facility. For a start, the rates are fixed for the term of the finance agreement giving you a known, predictable payment stream. In addition, banks tend to avoid offering finance for software and implementation costs as they cannot be secured. The SAP Finance offering covers your complete solution and is structured

to suit your specific requirements. Bank loans are fairly inflexible whereas with SAP Finance, you have the option to upgrade or refresh your technology as your business needs evolve.

...continued

“I want to keep all finance arrangements with my bank”

Bank finance and support should be called upon for strategic purposes. Whilst your bank may be happy to lend you money to invest in technology, you do increase your exposure unnecessarily. Short term bank credit should be preserved especially in a challenging economic climate. You should also consider the fees and conditions, for example down payments which are often

imposed with bank loans. Third party specialist asset finance companies such as BNP Paribas Leasing Solutions have invested heavily in developing flexible finance products that readily accommodate changes to your technology stack and facilitate the build of your IT roadmap.

“I’m just not comfortable with signing a finance agreement as it’s not

something we have used before”

Research shows most UK businesses and organisations of all sizes use lease finance. From sole

traders, partnerships to government bodies and blue chip companies, all have some exposure to financing.

“I do not want to be tied in to a multi-year finance agreement”

A finance term is there to help you manage your budget and do more with your cash. If you pay upfront in cash, it will take you some time to realise a return on your investment. However with finance, you get to match benefit to payments from month one.

About Frontline….

Frontline Consultancy has the depth of knowledge and breadth of skills to deliver a complete and highly successful implementation of SAP Business One.

Fully accredited SAP Business One Gold

Partner.

Established in 1991, we have decades of

experience in implementing software solutions across multiple sectors.

We understand your challenges and

processes.

In-depth knowledge of the key issues in

today's marketplace.

Extensive project management experience

backed up by a proven implementation methodology.

Successful track record of implementations

through our breadth of skills.

Excellent training available at the

customer's site or at our offices.

Full, responsive support capabilities - from

using the software in a business context

through to maintaining the infrastructure it

sits on.

A complete service - ensuring low total cost

of ownership and providing a single point of contact.

We cover everything including:

Hardware

Networking and remote / multi-site use

Software implementation and training

Business change

Support, upgrades and software changes

System integration (e.g. EDI & bank

reconciliation)

Hosting

As an accredited Gold Partner for SAP Business

One, Frontline Consultancy have proven expertise in all aspects of the software and we have met stringent SAP requirements for training, certification and business standards and practices.

Our aim is to implement the solution best suiting

your needs and deliver exceptional service at a competitive rate.

Frontline Consultancy can offer SAP Business One as a fully managed hosted solution. This means that you can focus on your business

while Frontline Consultancy manages the delivery of SAP Business One to your desktop and mobile devices 24/7, 365 days each year.

Frontline Consultancy,

Frontline House,

Epsom Avenue, Brooke Park Estate,

Wilmslow,

Cheshire

Tel: 0161 486 4400 Fax: 0870 606 7300

info@frontline-consultancy.co.uk

www.frontline-consultancy.com