Recession sees SMEs offered extended 0% finance

Avaya increases 0% finance in response to SMEs' problems in investing when it is difficult to justify capital outlay

Avaya Financial Services (AFS) has extended until September 2009 its 0% finance scheme laid out in 2008 for Avaya IP Office (aimed at small to medium sized enterprises, SMEs) and its Avaya Enterprise offering.

The IP-based communications supplier says that it is lengthening the period of the offer due to strong demand by both partners and prospective customers for flexible financing options.

What is clear though is the industry needs to be as creative as possible in attracting firms, especially SMEs, to invest in IT when it is difficult to justify capital outlay, even when it relates to business-critical technology. Leasing is a tactic that has increasingly be been used as a cost-effective approach to purchasing.

To attract more SME customers, AFS has increased the lease term for Avaya IP Office from two to three years and more than halved the minimum deal size to $5,000 (currently £3,600). Paul Fazakerley, European Programme Director, AFS, claimed that the financing option will be increasingly attractive to SMEs whom he believes need technology such as Avaya's to gain and maintain competitive edge in difficult economic times. 

"Cash-flow constraints and concerns regarding the economic environment mean many companies are reluctant to commit to significant capital outlay, even for essential office equipment. As a result, Avaya Financial Services has seen a three-fold increase in enquiries from small, medium and large businesses seeking to find more flexible ways of financing."




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