Due to its proximity to the market, Kapsch BusinessCom is aware of the problems facing many companies when making investment decisions. Optimum financing possibilities play a great role in this process. Because of its leading position in the market, Kapsch is providing fresh impetus in this area at an early stage. Through its partly-owned subsidiary, Kapsch Financial Services GmbH, the company has the capability to address the specific requirements of every client through a large range of financing options.

Hire concepts also become interesting for networks and notebooks

At present, Kapsch Financial Services GmbH is already providing services for around 5,500 hire clients of Kapsch BusinessCom AG. “Hire options have been common for telephone systems for a long time”, describes Christian Perger, Managing Director of Kapsch Financial Services, “now this option is also becoming interesting for networks and notebooks.” Apart from balance-sheet aspects, an honest view of total costs also argues in favour of this in certain cases. “When clients use equipment for too long, the maintenance costs often increase considerably,” according to Perger. “Regular payments are also easier to plan for than one-off investments.” While leasing options are quite common for company vehicle fleets, only few small and medium-sized enterprises consider the possibility of technology leasing. Technology leasing (also termed “residual value leasing”) is also applicable for non-durable goods such as notebooks. The advantage: after about three years, the devices are exchanged and high maintenance costs that would have been incurred after the three years are avoided. In this way, the company remains on par with the latest technological standards.

If a client of Kapsch is in the process of considerably extending or renewing its system, sale-and-lease-back or lease extension options may be implemented. This can counteract any additional short-term investment burdens. In the case of sale-and-lease-back an already integrated solution by Kapsch in connection with a tailored extension of the system is bought back and then leased back to the client. In so doing, further capital can be freed up. In the case of lease extension, the leasing term is extended for the entire solution offered, i.e. the client can still carry out the expansion at a roughly consistent or only slightly higher monthly charge. In this way, companies can continue to use the latest technologies without additional financial burdens.

Positive effect of spreading initial costs of technologies to later periods

“Especially for small companies, gaining access to funding is often difficult. At present, we usually have 20,000 euro projects; but even volumes of only 3,000 to 4,000 euros – without handling charges – are processed at Kapsch,” explains Perger. For companies, these measures – distributing initial costs to later periods – can have a positive aspect (based on the assumption that the challenging economic situation will return to normal within the next 1 to 2 years). Kapsch also evaluates new financing alternatives here. For example, hire or leasing clients have the option to pay only half of the hire charges in the first year and to spread the second half proportionately over the remaining term. However, these options must be carefully checked – as with sale-and-lease-back and lease extension – with regard to the economic situation and creditworthiness of the client.

Kapsch BusinessCom AG – a company of the Kapsch Group – has over 840 employees, sales of more than EUR 170 million in Austria and is one of the leading system integrators for state-of-the-art enterprise solutions in the field of telecommunications and networks as well as an established provider of IT solutions.

The total solution portfolio includes the business fields of Business Protection, Collaboration – i.e. the collaboration of teams – Network Excellence, IT Performance, Outtasking and Multimedia Solutions. It also includes the necessary basic infrastructure for all these solutions. The portfolio is rounded off with numerous Kapsch services, such as tailor-made financing and service options as well as consulting and project management for complex projects.

Kapsch BusinessCom focuses on vendor independence and partnership with leading global providers of technology, such as Cisco, Microsoft, Aastra, Avaya, HP and many others, with whom Kapsch implements integrated solutions for more than 15,000 customers.

With a local presence and around another 300 employees in Bulgaria, Croatia, the Czech Republic, Hungary, Romania, Slovakia,  Slovenia and Poland Kapsch BusinessCom is also a leading provider in Central and Eastern Europe.

For further information please contact:

Jutta Hanle
Company communication
Kapsch BusinessCom AG
Wienerbergstraße 53, 1121 Vienna, Austria
Phone: +43 50 811 5787
E-Mail: jutta.hanle@kapsch.net
www.kapschbusiness.com