Posted on: 08 December, 2001

Author: William H. Haynie

Until recently leasing companies wouldn't even think about financingtransactions that included so-called "soft costs" such as custom software.Financing for hard collateral equipment were the only prog... Until recently leasing companies wouldn't even think about financingtransactions that included so-called "soft costs" such as custom software.Financing for hard collateral equipment were the only programs available.Now however, leasing companies are beginning to change with the times. Manylease/finance companies have added software financing to their traditionalline of equipment leasing, allowing businesses to buy expensive, evencustom-designed software, immediately, and pay for it over time.With the evolution of the Internet a handful of firms have begun a similarfinancing program for Web site design and development. These new programsallow a company to establish a competitive web presence without spending itscash reserves. This new finance option allows a company to upgrade itscurrent Web site or to develop from the outset an appealing and effectivesite designed to implement the company's e-business plan the way it wasoriginally envisioned.For most businesses, the standard, brochure-type Web site is not tooexpensive. More and more businesses however are requiring higher-endsolutions to achieve their business goals, and for businesses to reallycompete in today's e-world, they need to have a site with all the bells andwhistles. Such as, Web-based Publishing forms, Custom programming of Javaapplets, Password-protected directories,Database software, Chat software, Dynamic page generation andDigitization and integration of sound/video.Building such sites is expensive. Up to now companies have had to pay cashfor their site. This has forced many companies to put up a less effectivesite than they wanted, or to delay putting it up at all until they had thecash to pay for it. Each of these "solutions" costs the company in lostrevenues as well as market share lost to competitors who have quality websites.Small companies have limited options for getting on the Web. Traditionalloans are next to impossible to obtain. Banks won't finance software, muchless a Web site. To banks, a Web site is an intangible asset.The few lease companies that have taken on the concept of Web site financingare by and large gearing their programs toward Web developers, who can offerthis service to potential clients. By offering a finance option to aprospect, Web developers are overcoming cost objections, and are thusclosing more business. The key here is that with the newly emergingfinancing options a company can have its web site now and let the web sitegenerate income to pay for itself over time.E-business is creating a brand new world. New World - New Rules! Article Tags: Companies Have Source: Free Articles from ArticlesFactory.com