Software Finance and Leasing
WestWon have been leasing software for many years. We work with over 20 different funders that all lease software and as a result have arranged nearly 750 software leases for over £25.2 million in value.
However, many IT directors still aren’t aware software can be leased or are not familiar with the process. As a result, we have put together a range of the most common questions we get asked. If you are already aware of the process or would prefer to speak to us directly, please enquire online now or give us a call on 01494 611 456. Alternatively, read below for more information.
Can you finance software development?
Yes, within reason. Depending on the customer and the software, there will be times we would recommend a loan as opposed to a lease.
How can you lease software when the product is just a licence?
Software authors own the legal rights and IP in their software and just grant companies a licence to use it. Hence, when a software supplier sells software, what they are actually doing is just selling a licence to the software, normally for a set number of years. Software leasing companies respect this and are still happy to finance software.
Can you lease hosted software?
Yes. However, some of our software finance and leasing companies do not like to fund hosted software.
Can you include software raining, maintenance and support costs in a lease?
Yes, within reason. Often leasing companies that fund software prefer to see the client pay for the maintenance over the duration of the lease as opposed to paying a supplier upfront for all the maintenance charges.
What is the minimum value of software you can finance?
We can finance software with values of £1,000.00+VAT and above.
How does the VAT work on software leasing?
VAT is payable at 20% of each rental.
As a software supplier, how and when do we get paid?
Normally within 24 hours of the software being installed. Our leasing finance company will organise a same day bank payment.
As an end user software customer, what is the difference with the process when leasing?
The key difference is that the software supplier will invoice our leasing finance company. You sign a simple rental agreement and confirm you are happy for the supplier to be paid. As and when we have your confirmation, the leasing company will pay your supplier directly and then you just pay rentals every month / quarter.
We are a new / small software developer. Will you deal with us?
Within reason yes. Some leasing companies will only deal with the top 100 worldwide software authors such as Microsoft or Sage. We know there are thousands of small niche software developers who could lease their software to their customer base.
We are a software developer. We think the SAAS model is better for our company in the long run compared to leasing. What do you think?
We work with many software developers that either offer or have offered a Software As A Service model. The key benefit to you is the annuity stream. When you have the likes of Microsoft and Sage just selling a monthly licence fee per user, it is hard to argue against that.
The facts are that most smaller software developers will benefit from the strong cash flow of offering a leasing option. Just like the SAAS model the client is tied in but you do not have to hand around waiting for your cash.
What other software markets have you been involved in?
We have done a lot of software leasing in the construction space. We have financed accountancy software, software for the garden centre sector, kitchen and bathroom suppliers, lots of CAD software, software for double glazing companies, personnel systems, GDPR software, CRM software systems….. and this is just to name a few.
Contact Us Today
If you are a business looking to finance your software or a software supplier looking to offer finance to your customers, please get in touch! Give us a call on 01494 611 456 or Enquire Online Below!