The client is a publicly listed company with 600 + employees across the globe and a focus on the IT sector, providing data hosting and managed services to government and corporate clients in Australia and overseas.
Rapid growth of the company, as well as diversification of services offered to the market resulted in a significant increase to the company’s IT Capex spend. As the company matured, they started to look at better ways to finance their IT spend.
They wanted to match the cost of the equipment to revenue, and move the expense from being a capital expenditure to an operating expenditure and they needed a competitive interest rate that matched or bettered the rates they were currently being offered. They required an unsecured facility i.e., no fixed and floating charges over the assets of the business and the ability to provide funding for assets located off shore as well as flexibility at the end of the term.
After a competitive bid process between Northquest, the customer’s bank and a vendor finance offering, we were chosen as the funding provider for the IT requirements of the company.
Northquest delivered the best all-around solution in terms of pricing, flexibility and delivering against the customer’s needs. As a result the client preserved their banking lines for core business expansion and has subsequently partnered with us for a number of other IT requirements, across a range of vendors and suppliers and a mix of hardware, software and services.