PC World lures SMEs with fast financing

SmartPlan offers instant access to up to £3,000 of leased IT equipment

PC World Business aims to help UK start-ups and bolster its position in the SME space by introducing a finance package this week.

Under SmartPlan, financing can be arranged in minutes at PC World's in-store business centres, the firm claimed.

The initiative, developed in conjunction with Australian business finance company RentSmart and the Bank of Scotland, offers instant access to up to £3,000 of leased IT equipment "without the need to demonstrate a trading history or business plan", according to a company statement.

In a recent survey of 500 directors commissioned by PC World Business, nearly two thirds of respondents said that funding problems are the biggest hindrance to innovation. Many had put launch plans on ice because of credit checking processes.

Simon Turner, group managing director, said in a statement: "Many business leaders saw risk-averse lenders as a real risk to innovation. During the dot-com boom, it was possible to secure early-stage funding from many sources.

"Nowadays, even getting financing for IT equipment is a tortuous process that may be robbing the UK economy of exciting new enterprises."

Steve Feacey, account manager for distributor Midwich at CF Asset Finance, said the scheme was a good idea but that SMEs can get the same amount using their credit cards.

"This will challenge resellers but only in the very small businesses sector," he said.

Eddie Pacey, director of credit services at distributor Ideal, said: "We use a scoring system for small companies that enables 60 per cent of applications to be approved."

PC World Business declined to comment further.