Over the years I’ve been with Fenwick Software I have often seen customers get right to the point where they have identified that NAV is the solution they need, and yet sometimes I feel not enough thought has gone into the most effective way to fund the NAV implementation.
Here are three options you may not have considered:
Some businesses plan well in advance for a new ERP solution and have cash set aside to pay up-front for the licenses and implementation. For many businesses the decision to implement a new ERP system is a huge investment, and due consideration must be given to ensure that they have the necessary capital to see the project through to the end.
However, even though a business may have the required capital to pay the implementation costs, it may be that this capital could be better used in other areas of the business, perhaps to help fund growth opportunities. Not all items involving the growth of a business can be financed, some demand a cash injection. For example, you can finance the purchase of a new car, but you can’t finance the appointment of a salesperson to drive it around.
Carefully plan out the best use for your cash investments and consider all the alternatives, as once its spent it’s too late to claw it back. It may be better to finance your ERP implementation, or fund it through a Government Grant and use your cash for another opportunity.
Many customers and finance professionals are not aware that there are very competitive rates available from finance companies that are happy to discuss full unsecured financing of a Software Licensing and Implementation Project. These companies identify the upfront nature and long term benefits associated with the rollout of ERP solutions, and are flexible in how they can be structured. Fenwick Software has referred a number of customers to independent financiers, such as Microsoft Finance and IBM Global Finance, resulting in very successful outcomes.
Modern financing solutions are available that can involve zero up-front payments, stepped payments, and traditional straight line repayments over 3-5 years. The choice is yours to align with your business strategy and forecast cash requirements.
Lastly, sitting behind a curtain is the little boy no one wants to play with—the Government Grant. There are a myriad of untapped grants available to business from all levels of government: federal, state or local. Businesses can tap into “left field” grants and incentive schemes designed to stimulate growth in specific industries, to encourage employment in regional areas, or to merely assist with the cost of upskilling the workforce. In some instances funding may be available to finance a percentage of the training costs related to your ERP solution.
To find out more about what grants may be available to you, Fenwick Software can introduce you to specialist organisations that will be pleased to have an obligation free chat about the possibility of your business being able to benefit from government assistance.