Shire Leasing launches new Tech Finance division for SMEs

Shire Leasing has announced the launch of a dedicated Technology Finance division, aimed at increasing access to financing for businesses investing in solutions from IT Channel Partners and Value-Added Resellers (VARs). As one of the UK's largest independent asset finance providers, the company aims to address affordability barriers that hinder technology adoption among small and medium-sized enterprises (SMEs).

Research from The Federation of Small Businesses (FSB) indicates that the average cost of introducing innovation over a three-year period is over GBP £27,000 for small firms, with 28% of businesses surveyed citing affordability as a barrier to adopting new technologies. This new division from Shire Leasing aims to alleviate such financial constraints, thereby facilitating smoother technology adoption.

In 2023, more than GBP £38 billion was transacted in the UK's asset finance market, serving as a popular solution for cash flow management among businesses investing in new equipment. However, only GBP £1.2 billion was allocated for IT equipment finance in the 12 months leading up to June 2024, which marks a 6% decline from the previous year, according to the Finance and Leasing Association. This indicates a notable gap in the financing of IT infrastructure, an area increasingly critical for business operations.

Shire Leasing's Technology Finance division aims to help IT Channel Partners and VARs offer more accessible financing options to their clients. The objective is to empower businesses to adopt essential technology solutions without incurring significant upfront costs, thereby enhancing SMEs' capability to scale and innovate. The division's goal is to raise awareness about the benefits of financing technology solutions, broadening the perception that finance can be extended beyond hardware to include software and soft costs.

Martin Ardern has been appointed ICT Sales Director to lead the new division. Ardern brings over 30 years of asset finance experience, with a significant focus on the technology sector. His previous roles include senior positions at BNP Paribas, GE Capital, and Lloyds, where he developed successful finance programmes with prominent IT manufacturers and software companies.

Ardern expressed his enthusiasm for the new venture. "ICT solutions and evolution are often vital to the growth and success of SMEs, helping to improve operations and efficiencies in competitive business landscapes. Shire Leasing already has extensive capabilities in developing bespoke finance programmes for the channel, working with market-leading blue-chip distributors as well as smaller B2B resellers. I'm excited to bring my specialist expertise to develop further finance programmes across the Channel, ultimately improving B2B sales conversions and supporting SMEs to grow affordably," he stated.

The Technology Finance division will offer a range of dedicated channel finance solutions. This includes the Technology Lease, which allows SMEs to finance equipment and associated software and soft costs, such as licences, support contracts, and training, under a single agreement. The Managed Rental Agreement is another option that provides a comprehensive package, including a recurring revenue collection facility, ensuring all costs are covered with a single payment.

Shire Leasing's initiative aligns with the growing demand for upgraded IT infrastructure and services, aiming to support the financial needs of businesses committed to technological growth. This move is likely to be well-received among IT Channel Partners and VARs looking for effective ways to aid their clients in overcoming financial hindrances to technology adoption.