Equipment suppliers are increasingly being asked by customers to offer a managed services solution, comprising either a fixed or variable periodic charge which includes the provision of equipment, software and services including maintenance, support, installation and training. Paragon Bank Technology Finance has more than 10 years’ experience of funding such contracts using non- recourse, disclosed and undisclosed funding products which enable suppliers to gain a revenue and profit recognition advantage. More recently we have created a usage solution following demand from the global enterprise customers of our vendor partners.
For example, a global software company entered into a managed services contract with a large UK local authority which wanted to install new software with some bespoke development (including that of a portal for use by local residents). It requested that payment for the project be made over a five year term. Paragon Bank Technology Finance worked with the supplier and local authority to design and implement a solution which achieved the objectives of both parties. The transaction was high value and the intangible services element of the contract exceeded 50% of the total value.
Paragon Bank Technology Finance was able to help me in several ways. They helped with the financial planning, but also by being in tune with the market and understanding the business very well. Dealings were always very transparent, there was no smoke and mirrors, and there was no need to make anything more complex than it needed to be. It wasn’t about a heavy sell, just facilitating the finance.
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We have great experience across many sectors in the media & technology industries.
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