Refresh smarter, spend smarter: Why flexible IT financing is on the rise

In today's fast-paced business world, owning IT assets outright is becoming increasingly outdated. Technology evolves faster than ever, budgets are under pressure, and flexibility has become a top priority for Australian businesses of all sizes.

Rather than investing large amounts of capital in depreciating assets, more businesses are shifting towards more intelligent and agile models, including leasing, financing, and structured refresh programmes.

It's not just enterprise giants making the move; mid-sized organisations and growing SMEs are increasingly embracing flexible financing to stay competitive, manage risk, and keep their teams equipped with the latest technology.

Here's why the traditional "own and operate" approach is losing its shine — and how a modern financing strategy can help future-proof your IT environment.

Why Ownership is Losing Ground

Owning technology used to be seen as a long-term investment. Today, it's often a liability.

Rapid innovation cycles mean devices become outdated faster than ever.

According to Deloitte's 2024 Tech Trends Australia report, 70% of mid-sized businesses plan to refresh major parts of their IT infrastructure within the next two years.

Meanwhile, economic uncertainty and rising interest rates are prompting Australian businesses to reassess their capital allocation strategies. NAB's Business Insights show that nearly half of SMEs now prioritise cashflow preservation over asset accumulation.

In short, holding onto ageing, depreciating assets ties up capital, increases operational risk, and limits flexibility when businesses need it most.

Smarter Financing Options for a Changing Market

Today's IT financing models are designed for flexibility and growth. Some of the most popular approaches include:

• Operating leases: Pay for the use of technology over a set period, without the burden of ownership. Upgrades and returns are built into the model.
• Finance leases and chattel mortgages: Structure repayments over time, allowing businesses to own assets at the end if desired — while keeping cashflow healthy during the term.
• Structured refresh programmes: Predetermined upgrade cycles that ensure businesses stay current, competitive, and efficient without spikes in capital expenditure.
• Technology Lifecycle Solutions: Comprehensive asset management services that span procurement, usage, upcycling, and responsible retirement — helping to maximise value across the full lifecycle.

Leading financial service providers are offering new models that combine financing flexibility with sustainability initiatives, enabling businesses to extend, optimise, or responsibly retire IT assets through services like Asset Upcycling and Tech Buyback programmes.

The Business Benefits of Moving to Finance-First Models

Free up capital for growth
Redirect funds from depreciating equipment to strategic investments, like customer growth, talent acquisition, or innovation projects.

Stay agile and current
Regular refresh cycles ensure your teams always have access to the latest, most secure technology without the costs and delays of large-scale replacements.

Improve security and compliance
Older hardware often lags in critical security updates. A structured refresh strategy enables businesses to maintain a strong cybersecurity posture and meet evolving compliance standards.

Advance sustainability goals
Circular economy models, such as asset upcycling and technology recycling, facilitate the achievement of environmental targets while often recovering residual value from retired assets.

Gain predictability and control
Fixed monthly costs, flexible end-of-term options, and streamlined asset management help businesses plan better and avoid budget surprises.

What to Consider Before Moving to a Finance Model

Choosing the right financing strategy means balancing operational needs with financial and strategic goals.

Important questions include:

• How fast does technology evolve in your sector, and how often should you refresh?
• Do you require full lifecycle support, including maintenance, upgrades, and end-of-life recycling services?
• Is preserving cash flow and balance sheet flexibility a major driver?
• How important are sustainability and circular economy initiatives to your business stakeholders?
• Are you planning for hybrid workforces or technology expansion in the near term?

An experienced IT partner can help model various scenarios and design a solution that aligns with both your business and technology objectives.

How BPC Commercial Can Help

At BPC Commercial, we work closely with businesses across Australia to deliver flexible, cost-effective IT financing solutions.

Whether you're looking for a simple lease agreement, a structured refresh programme, or a full Technology Lifecycle Solution with sustainable asset retirement, we can tailor a strategy that supports your growth.

We partner with trusted finance providers to ensure our customers get access to the most modern, efficient, and sustainable financing and asset management options available today.