wwcb2b.com utilises the Project Finance Plan (PFP) to cater for larger and more sophisticated IT acquisitions. Projects of this nature can often include multiple suppliers, considerable up-front investment and may take many months to implement before the IT solution goes live and begins delivering real benefits. The PFP allows customers to consolidate costs incurred whilst the system is being implemented and convert these into a single lease contract at the end of the project period.

It works like this:

• The Lender agrees a PFP facility against which the customer can incur expenditure.
• PFP and Supply Contract are signed prior to the commencement of the IT project.
• As products and services are delivered, supplier invoices are raised in favour of the Lender.
• Customer authorises payment of the various invoices at regular intervals.
• Customer is provided with a highly competitive interim facility for the project period expressed as a daily rate/£1,000 of capital. Alternatively customers can opt to pay nothing until the roll out has been completed and the lease activated.
• Customer receives ongoing progress reports identifying payments made on their behalf.
• At the end of the project period, the various invoices are consolidated into an overall capital cost and the lease facility is activated.

Key benefits include:

• Financing is available over the term of the project and up to seven years beyond.
• Consulting, training, installation, data conversion, scoping exercises, software licenses, hardware, maintenance, warranties and delivery costs can all be included within the PFP.
• Avoids the cost and hassle of managing multiple payments from many sources.
• No burden is placed on a customer’s day to day working capital resources.
• Customers can commit to purchases knowing a lease facility is in place once the system goes “live.”
• Customers anticipate spend at the beginning of the project but are not obliged to drawdown a minimum or maximum level.