Livingston Addresses Needs of Start Ups and SMEs

14th September 2010

ES Admin

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Livingston, Europe’s largest test equipment rental company, has announced a new initiative specifically designed to deal with the problems faced by companies as they try to establish themselves. With the industry still going through a period of austerity, it is clearly very difficult for younger firms to gain sufficient investment, and they must make the most of the limited financial resources they have. This is compounded by the fact that long term technology requirements are often uncertain and pieces of test kit that have been acquired can quickly become superfluous. In light of these issues, the arguments for renting equipment, rather than purchasing it, are stronger than ever.

Through its new initiative Livingston will look to cover the current shortfall in financial assistance, so that companies are not prevented from utilising expensive state-of-the-art test hardware, but can go beyond their maximum purchasing power.

By partnering with Livingston, companies will be able to free themselves of crippling budgetary constraints. They won’t have to worry about making any large upfront purchases of test equipment, but can break their outlay up into far more manageable monthly payments. The balance sheet is thereby kept clear, since these would be regarded as operational expenses. Furthermore, any available bank credit would not be tied up unnecessarily in assets, but could be directed to other more pressing matters.

According to Masten Evans, Managing Director of Livingston UK, “The current economic climate has placed considerable pressure on fledgling firms, as they do not have the capital at their disposal to buy in the cutting edge test equipment they need, and often struggle to get sufficient financial backing from the banks. This presents them with what appears to be a ‘Catch-22’ situation - such equipment holding the key to increasing revenue, but access to it not being possible without that increased revenue first having been attained.” “By following a rental strategy rather than purchasing equipment, it is possible to escape from this vicious circle” he continues “the support Livingston is now able to offer start ups and smaller enterprises means they will have the necessary tools to take on projects that bolster their income and allow them to grow without the need to find funds for upfront purchases.”

This initiative is complemented by Livingston’s existing portfolio of rental packages, such as Easy2Source and Rent2Buy, which offer customers the flexibility to source the required equipment while they are not in a position to procure it, but to then put the payments towards a purchase when the time is right.

“In addition, a rental approach effectively removes the risk that costly equipment will not actually be utilised as much as first estimated, so that the expense associated with having it directly relates to the revenue it generates. It also means the company still has the flexibility to upgrade if its test requirements suddenly change” Evans concludes.