Equanet identifies appetite for IT financing

41 per cent of firms questioned by the reseller saw IT finance as essential tool to remaining competitive

Research from Equanet suggests there is a good appetite for IT financing among UK businesses as they look to fund much-needed technology refreshes.

According to Equanet managing director Phil Birbeck (pictured), outdated technology is the "the noose tightening around UK business' neck" and leasing could be the answer.

Faced with a lack of support from banks, 41 per cent of IT managers at 812 mid- to large-sized firms quizzed by the reseller in March saw financing options as essential to remaining competitive.

This is despite 60 per cent confessing to never having used financing options when purchasing IT, said the reseller, which partners with finance provider CIT.

According to the study, 47 per cent of UK businesses wait three years before updating their technology equipment. Just 19 per cent update annually, raising concerns that UK firms are falling behind on the innovation curve.

Some 35 per cent of those questioned said the cost of maintaining old equipment is prohibiting efficiency.

Equanet managing director Phil Birbeck expressed concerns that UK firms could be left bobbing in the wake of their overseas counterparts if they do not turn to alternative sources of funding.

"As the speed of technological innovation has increased, UK business has proved ill equipped to maintain such momentum," he said.

"Everyone knows budgets are tight, but there are ways of coping. It just seems that companies do not know where to look. Options such as leasing solutions and schemes such as BYOC [bring your own computer] need to be nurtured, otherwise the only certainty for UK business will be that, in 10 years' time, we will have completely lost the ability to compete in the international market. "

Some 55 per cent of those questioned said they have tried to take out a bank loan to fund IT. Of these, only 42 per cent were successful.