The digital transformation of business makes innovative payment models such as pay-per-use possible. In comparison to classic financing, by relying on a payment method that is based on actual usage, companies can avoid high capital expenditure on IT equipment or on installing and running IT solutions and servers.
Flexible pay-per-use models that do not impact on liquidity are already well established when it comes to funding IT hardware. The pay-per-use model, which is based on actual usage, avoids high start-up costs and years of write-downs. This takes the pressure off the balance sheet and frees up capital that can be spent on important innovation programs. Even entire IT landscapes can be operated on this basis. The model adapts perfectly to the customer’s individual circumstances, providing billing that is based solely on usage.
Companies funding smartphones through pay-per-use can also benefit from a residual value calculation. Based on the list price and the useful life – for example two years – the residual value is calculated and deducted from the cost. If a smartphone with a list price of €1,000 is used for two years, by which time it is estimated to have a residual value of €200, it will cost the customer only €800 over the whole term.
Implementing pay-per-use models is quite complex, whether it is in industrial or in the healthcare sector. Requirements and costs must be analyzed and determined exactly, taking into account the planned useful life and all internal and external resources for operation, maintenance, and remarketing. Flexible contracts that allow the software, IT infrastructure, and IT equipment to be scaled according to requirements are also important.
The support of a non-captive partner is crucial on such a project. This partner should have expertise with regard to technologies, financing, terms, and services, be able to bring transparency to the technical and administrative processes, and act as a single point of contact for the customer. Thanks to our experience in payment, portfolio, and service management and comprehensive market knowledge are also crucial when it comes to optimizing technology investments based on customized pay-per-use solutions.