IT Systems are a crucial investment for any business, and one that often involves substantial capital outlay. However, tying up resources in IT puts unnecessary pressure on cash flow. It is also an investment pattern that is unsuited to the nature of asset.

Hardware and software are rapidly depreciating assets and, to stay up-to-date, you need to be able to upgrade your system regularly.

What can help is a payment method that does not sap cash resources and lets you respond easily to technology changes.

There are IT finance providers and payment plans, that allow you to acquire the technology you need, when you need it, without budgetary constraints.

The case for IT finance is simple and powerful. Such solutions let you acquire the technology you need now and spread the cost over your equipment's useful life. You can free up working capital and start realising the benefits right away.

Most plans are very flexible and it can be a way of paying that is tailored to your needs, enabling your business to keep pace with the ever-changing demands of the market, customers and competition.

Reasons to do it and how it can work:

* Spreading the cost creates instant cash flow benefits, and lets you demonstrate ROI from day one to directors and stakeholders. At the end of the agreement you can either return the equipment, continue to use it for a minimal annual fee, or take advantage of system change options to make substantial system upgrades or refresh your entire network.

* Financing your IT does not have to affect your other credit lines, so you can stay on the leading edge of technology, and dedicate your funding sources to other projects. This reduces the need for significant capital outlay, and enables you to access the system you need now.

* The finance plan can cover hardware, software, training, maintenance and more, in one simple, regular payment.

* You can build in upgrades and migrations, without increasing your payments.

* Because leasing payments are tax deductible, such finance plans can be tax-efficient.

* Mark Joynson is regional managing director of Technology Services Group, which provides consultancy, computer networks, software, training and service. Contact www.tsg.com or call 08451-550180.