Top 5 things to look for in a gadget financing plan
Over 80% of businesses say outdated technology slows down their operation. For many companies, the upfront cost of upgrading gadgets is a major roadblock.
Take Adebayo, for instance. As the manager of a growing logistics company in Lagos, he noticed his team wasting hours every week troubleshooting outdated handheld devices.
Deliveries were delayed, and customer complaints were piling up. He knew they needed an upgrade, but the cost of buying new devices was HUGE..
This is where gadget financing became his lifeline.
By choosing the right financing plan, Adebayo was able to equip his team with the latest devices without draining his budget. Within months, operations improved, customers were happier, and profits grew.
But not everyone gets it right. Some financing plans come with hidden fees, rigid contracts, or outdated gadgets that could leave your business worse off.
In this article, we’ll explore five critical factors to look for in a gadget financing plan, so you can make smart, confident decisions and avoid common pitfalls just like Adebayo did.
Let’s get started!
1. Interest rates and associated costs
Interest rates determine how much extra you’ll pay on top of the original cost of the gadgets.
For businesses financing multiple devices, even a small difference in rates can add up to hundreds of thousands of naira over time.
What to look for:
Fixed vs. variable interest rates:
Fixed rates remain consistent throughout the repayment period, making them easier to budget for.
Variable rates, on the other hand, might start lower but can increase unexpectedly based on market conditions. For example, a plan starting at 4% could rise to 6% within a year, increasing costs.
Hidden Fees:
Financing plans sometimes come with additional charges such as:
- Processing fees: Fees for setting up the financing agreement.
- Late payment penalties: Charges if payments are delayed.
- Early repayment fees: Some providers penalize customers for clearing their debt ahead of schedule.
Let's say your business is financing ₦10 million worth of laptops at a 7% annual interest rate for three years. By the end of the term, you’d have paid an extra ₦2.1 million in interest. If the interest rate were 10%, your total interest would rise to ₦3 million. This is a huge difference and can one way affect your budget.
2. Flexibility in payment terms
Businesses sometimes deal with ups and downs in their income due to factors like seasonal income, market downturns, or unexpected expenses. A flexible payment plan can help you manage finances without compromising operations.
What to look for:
Customizable payment terms:
Look for plans that let you choose between short-term (e.g., 12 months) or long-term (e.g., 24 months) repayment periods.
Short-term plans might have higher monthly payments but lower overall interest, while long-term plans spread out costs but result in higher interest payments.
Payment pauses or restructuring:
Does the provider allow payment deferrals or restructuring during financial hardships?
For instance, some financing companies offer a grace period of up to three months for businesses facing temporary cash flow challenges.
Early repayment options:
Ensure the plan allows you to clear your debt ahead of schedule without penalties. This can save you huge amounts in interest.
3. Coverage and benefits
A gadget financing plan that includes extra benefits can save your business money and provide peace of mind. Without these, unexpected repair costs or device theft could disrupt operations and hurt your business.
What to look for:
Insurance coverage:
Check if the financing plan includes device insurance for theft, accidental damage, or fire. For example, if a ₦500,000 smartphone gets stolen, an insured plan could replace it at little or no extra cost.
Warranties:
Financing plans most times include extended warranties, which cover repairs beyond what the manufacturer offers. So ensure the plan indeed beats the manufacturer's warranty.
Trade-in and upgrade benefits:
Some providers offer trade-in discounts on old devices when you upgrade, helping your business stay current with little to no additional costs.
4. Device options and upgrade policies
Technology evolves rapidly. Even before you say Jack Robinson, Apple is already rolling out a new device.
With this continuous evolution, outdated gadgets can slow down your operations or make you less competitive. A good financing plan ensures you’re not stuck with obsolete devices.
What to look for:
Device selection:
Ensure the plan offers a wide range of devices, including the latest models from reputable brands like Apple, Samsung, or Dell. Some plans limit you to specific models or brands, which might not meet your business needs.
Upgrade flexibility:
Look for financing plans that allow early upgrades or trade-ins. For example, if your business finances laptops for three years, an annual upgrade option ensures your team always works with the latest technology.
5. Customer support and service
Financing isn’t just about payments. It goes beyond that to gadget maintenance. Reliable customer support minimizes downtime and ensures your business stays operational.
What to look for:
Reliable Support:
Providers offering reliable support can resolve issues like billing questions or technical malfunctions quickly.
Repair and replacement services:
Financing plans include discounted or free repair services. Check if the provider offers device replacements during repairs to avoid business interruptions.
Your business growth can be powered by gamp
At gamp, we understand that every business has unique challenges and goals. That’s why our device financing plans are designed to offer the flexibility, affordability, and support you need to stay ahead.
Here's how we ensure our plans work for your business:
Tailored payment options
We offer customizable payment plans to match your business’s cash flow. Whether you prefer short-term plans with quicker payoffs or long-term plans with lower monthly payments, we dey for you.
Transparent costs :
No hidden fees, no surprises. Our financing agreements clearly outline all costs, including interest rates and repayment terms, so you know exactly what to expect.
Built-in device protection :
All our financing plans include comprehensive protection for your gadgets, such as:
- Insurance for theft and accidental damage
- Extended warranties that cover repairs beyond the standard manufacturer’s warranty.
This ensures your devices stay functional, and you avoid unexpected repair or replacement costs.
Access to the latest devices :
With our financing plans, you’re not limited to outdated technology. We provide access to the latest gadgets from top brands, so your business stays competitive and efficient. Plus, our trade-in and upgrade options make it easy to keep your devices up to date.
Dedicated support :
Our customer support team is available to assist you every step of the way. From choosing the right devices to resolving technical issues, we will help minimize downtime and keep your business running smoothly.
Our device financing plans go beyond just providing gadgets. They’re designed to support your business growth.
By combining flexible terms, transparent pricing, and exceptional support, we help you focus on what matters most: running and growing your business.
Ready to explore our plans? Get in touch with us today to learn more about how we can meet your gadget financing needs.
With gamp, it is NEVER A BREAK!