Lenovo Financial Services Debut In South Africa [Ventures Africa]
(Ventures Africa Via Acquire Media NewsEdge) VENTURES AFRICA – Multinational computer technology company, Lenovo has introduced the Lenovo Financial Services (LFS) into the South African market, enabling companies and business owners to manage their assets through a regular refresh cycles in which Lenovo will subsidise up to 20 percent of upfront equipment costs.
This is the first time Lenovo is launching the service in Africa. It has previously launched this service in 40 other countries.
The world’s largest PC maker hopes to launch the service in other African nations overtime. The service will offer cost-effective solution and alternative financial services to meet the needs of business owners.
The facility offers its solutions through innovative asset tracking, contract management, bundled insurance and equipment disposal options which allow business owners to think beyond the initial purchase decision and consider other cost drivers in the technology life cycle.
Lenovo says it will offer a more cost-effective financing solution than obtaining finance through a bank or using internal funding as it offers business owners some bottom-line benefits which include: excess-free insurance against theft, fire and water; an asset tracking solution that allows businesses to pinpoint exactly where in the world their assets are and report on changes thereto while equipment leasing is treated as an operating expense among other benefits.
According to Lenovo Africa General Manager, Graham Braum "Technology becomes outdated after three to four years, yet some companies still sweat these assets for as long as possible, believing they are stretching their IT budgets. In reality, it works out cheaper to refresh equipment rather than to maintain it."
Quoting leading IT research firm Gartner, Braum explained that 51 per cent of asset costs occur after warranty periods, meaning the total cost of ownership (TCO) may be a lot higher than initially planned.
"Businesses that manage their IT lifecycles can reduce costs by 30 per cent in the first year and by 5 per cent to 10 per cent in the next four years thereafter."
To this end, Ryan van der Ploeg, head of Lenovo Financial Services in South Africa said since technology is a depreciating asset; "it doesn't make financial sense for a business to fund rapidly depreciating assets out of their own resources, especially when considering the opportunity costs associated with cash and the subsidy LFS is providing."
The Lenovo Financial Services (LFS) programme was developed by Research Triangle Park and CIT Group Inc to offer financial solutions that will complement technology solution needed.
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