How to pay for digitalisation & new equipment
When it comes to digitalisation in business, it is usually a matter of ‘when’ not ‘if’ it will happen. But how do SMEs pay for it, and is it worth the investment?
Very few businesses of any size will be able to avoid the move towards a more tech. focused and digitally driven way of working. Most importantly, any investment needs to have a positive effect on the business so it remains competitive.
No matter what business sectors the company is in, from manufacturing to recruitment, charities to healthcare, investing in technology is only worthwhile if the solutions meet the needs of the company, and are used efficiently. When implemented correctly, digital solutions can improve productivity, save time and money, and deliver a financial return on investment.
Funding technology for SMEs
For SMEs, it is a matter of careful financial planning to make the investment in digital transformation, also known as Industry 4.0, manageable over a period of months, years or even decades.
But it’s not just about purchasing new technologies, software, robots or automated systems. Digital solutions often come with additional lifetime costs associated with cybersecurity or data protection for example. These costs will sit alongside other ongoing commitments, such as business rates.
So, for an SME with a strong business case for investment, how do you get the money for digitalisation projects and new equipment if traditional lenders are not an option?
Alternative finance for small businesses
One important avenue to explore is alternative finance. From crowdfunding to asset finance and Government Enterprise Investment Schemes which offer attractive tax breaks, small businesses do not have to limit themselves to using traditional bank finance to fund their Industry 4.0 opportunities.
Securing alternative finance can be an effective way for an SME to raise capital for new equipment and technology to ensure they are ready to explore all the benefits of the digital age.
For those planning ahead, Clear Vision, a financial management company in Romsey, Hampshire, can provide advice for small businesses on crowdfunding, finance solutions and tax breaks. More importantly, we can help build a strong business case to help get the best financing options.
Alongside strategic financial advice, compliant tax and accounts, and payroll or pension services, with Clear Vision, companies have a trusted partner to support them as they invest in the future of their small business.
Contact our expert team today for advice.