Lower monthly costs and higher liquidity with the right tools
Free up capital and increase your liquidity by letting someone else take care of your IT. Mats Läckgren and Henrik Lundgren from AddPro explain how AddPro As A Service helps you make smart and flexible investments.
- With a close partnership, we build an understanding of our customers and help to find the best solutions and the right digital tools based on the customer's needs," says Mats Läckgren, CFO AddPro.
For companies operating on a traditional business model, investing in hardware, software and other components is a drain on the balance sheet. By renting the necessary IT equipment, software and even services, capital is freed up as these items do not have to be charged to the balance sheet. This does not affect the company's working capital, liquidity or other financial ratios. Some customers wonder what the difference is between renting and leasing equipment. Finance leased equipment is treated as an investment for accounting purposes and has a residual value, with the implication that both assets and liabilities should be recognised on the balance sheet and the cost split between the interest component and depreciation at different points in the income statement as it is more of a depreciation charge. Instead, when an entity pays for an operating lease, the cost is accounted for as, for example, rent for premises or recurring hired services.
- It's a mobile service and we like to think of it as having a recurring delivery of fruit boxes to the office every month," says Mats Läckgren.
Flexible solutions through partnerships
Even for companies with good cash flow, there is reason to use AddPro As A Service. In addition to the lower cost, where the customer pays less money during the rental period than the cost of the products, it is a more flexible solution.
AddPro As A Service can be priced according to the number of users, and with the optional Flex-Option, the number of users and the cost mass can be increased or decreased over time. This allows you to change the contract over time if your workforce grows or shrinks, and you only pay for what you actually use.
- It is our goal to be as flexible as possible to help our customers. This option allows you to return parts of the equipment during the year, depending on how the premium is built up. We always work closely with our customers to find the right solutions for them, and can build everything from licensing and installation to project financing into our agreements," says Henrik Lundgren, Head of AddPro As A Service (AAS) at AddPro.
Sustainable reuse of equipment
With AddPro's Sale And Lease Back service, you as a customer can also free up capital from your existing IT equipment. By buying back existing equipment, several benefits can be achieved. Cash is freed up and can be used for alternative investments and projects instead of on something that is depreciating in value. This means that AddPro buys the equipment you have and then leases it back. AddPro also has extensive experience in helping our clients resell equipment that is no longer in use. This gives the equipment a second life and contributes to a more sustainable life cycle - a win both financially and environmentally. The same option is available when the hardware contract expires and can either be bought out or resold. AddPro As A Service is a green option for IT equipment and helps you on your way to achieving your sustainability goals.
- We are a financial partner that does everything we can to help our customers. We're in this together and we exist to make our customers' lives easier so they can focus on their core business and do what they do best," concludes Henrik Lundgren.
Would you like to know more about what AddPro As A Service can do for you? Contact us here.