replatforming series: know your payment options
DESCRIPTION
Join us for the final event in the series "Are You Ready for Replatforming?" to learn about the pros and cons of using various popular payment options to fund your business software investment. Our special guest is Mark Grimes from Blytheco partner Dimension Funding!TRANSCRIPT
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Are You Ready for
Replatforming?Webinar 6: Know Your Payment Options
Agenda
Recap: What is Replatforming?Definitions – What are the major payment types?Pros and Cons of eachWhere do they fit?Next Steps and resources for today
Introductions
Alicia AndersonStrategic MarketingAtlanta, GA-based19 years in ERP/CRM sales, service and marketing
Introductions
Mark GrimesDimension FundingBased in Irvine, CA since 1978,Works with companies like yours across the U.S. to provide lease financing solutions to help small to medium sized companies grow their business.
Moving to automation for the first time.Transitioning to a new system.Upgrading an existing system.
What is replatforming?
This series is designed to give you the tools and knowledge
needed to make ERP/CRM transition smooth and minimize
risk.
Industry analyst Mint Jutras reports that 73% of surveyed companies said that “management
driven change was requiring moderate to
substantial ERP change”
Series Introduction – May 7
How to Build a Business Case – June 4
How to Scope Your Project – July 9
How to Evaluate Solutions and Build Your Evaluation Committee – Wednesday – August 6
Cloud vs. On-Premise – September 3
Know Your Payment Options - TODAY
The Series
Know your payment options
6
ProsFast paymentNo interest No obligation Bargaining power
ConsDepletes business capitalDoes not fight inflationLimits technology to run your business Can create cash flow issues
Cash
Pros Easy approval Promotional rates Unsecured Fast
ConsCharge fees to payeeHigh interest rates VariablePersonal Credit is at riskHidden fees
Credit Cards
ProsOnce approved has lowest variable rates
Great for short term borrowingsImproves cash flow
ConsUsually needs to be renewed annuallyVariable RateFinancial reporting needs to be done to bank once a yearBank approval before additional borrowing can happen.Usually has a lien against all assets of business Reduces available credit & limits future borrowing ability.Bank can call note
Line of Credit
ProsCreates low cost of software with monthly paymentMinimal infrastructure Minimal maintenanceUpdates without additional cost
ConsImplementation costs not includedNo ownershipIf subscribed longer than 3 years can typically be more expensive than purchasing
Subscription
ProsMay include maintenance and professional servicesFixed rateCreates better cash flowNo security interest in borrowing entity Fights inflationReduces Obsolescence Tax advantagesFlexible re payment optionsMay have more customized software Lower cost of entryQuicker Turnaround
ConsInterest costsSet obligationEarly terminationOver extendingNo equity
Financing or Leasing Options
One size does not fit allMap the TCO over the life of the systemUnderstand the priorities for your businessQuestion the assumptions about each option
In summary…
Does your business currently use any of the following funding sources?
CashCredit Cards or Line of creditSubscription modelFinancing/LeasingNone
A Quick Audience Poll…
Resources for today’s class
Link to the CalculatorCopy of this presentationResources from previous classesFor more information, questions, or comments please email or call:
Mark Grimes, [email protected]
Available on http://info.blytheco.com/replatform-resources
