Financing digital notice boards for housing cooperatives – no need for a lump sum investment
Did you know that instead of a lump sum investment, a digital notice board can also be acquired for a housing cooperative through financing? Financing agreements are suitable for various types of housing cooperatives, including individual housing companies and large rental housing operators. The insurance included in the agreement provides good coverage for the financing period in case of possible damage or vandalism.
Tommi Harjapää, Key Account Manager at Siemens Financial Services, and Henry Hietavala from One4all elaborate below on:
- When is it advisable to utilize financing for the acquisition of a digital notice board?
- How does digital notice board financing work in practice?
- What advantages does digital notice board financing offer?
When should a housing cooperative choose financing for a digital notice board?
“Financing for a digital notice board is particularly suitable when the housing cooperative does not have the possibility to make a lump sum investment in the display(s), but the cooperative is financially stable and can obtain financing. Thanks to the financing, the housing cooperative does not need to tie up capital in the product,” Henry explains.
Tommi, who manages the One4all account at Siemens, points out that many may be surprised by how affordable the monthly price for a staircase display can be when utilizing financing.
“The financing price for a passive staircase display over a 60-month financing period is approximately 26 euros per month, and for a touchscreen display, it’s around 43 euros per month (prices do not include the financing establishment fee, billing fee, or insurance, nor service or maintenance fees).”
What steps should be taken to acquire a digital notice board through financing?
“When a customer chooses financing, they also decide on the duration of the financing period. Financing is possible for 3–5 years. We recommend a 60-month contract for our customers, as the warranty for our staircase displays also lasts for the same period,” Henry advises.
After the decision, the process proceeds smoothly.
“The next step is to submit a financing application, for which the financing company must first provide a positive credit decision. Once the positive credit decision is obtained, the contract is sent to the customer for signing. After signing the contract, the date for the installation and commissioning of the staircase display is agreed upon. During commissioning, training is provided to instruct the customer on how to use the digital notice board management system.”
What advantages does financing offer?
For Tommi, who handles digital notice board financing at Siemens, the answer is clear.
“The advantages of financing are definitely its simplicity and speed. The housing cooperative does not need to contact a bank and start investigating a loan. The credit decision for the staircase display can be obtained on the same day.”
Tommi also highlights the following advantages:
No heavy lump sum investments
“In financing, monthly costs are predictable and evenly spread over the financing period, which facilitates the housing cooperative’s budgeting. There are no extra costs or surprises.”
No separate collateral required
“The customer does not need to worry about collateral, as the digital notice board serves as collateral for the financing.”
Adding new digital notice board later
“If a customer initially installs, for example, 5 displays and later wants to add more, all the staircase displays can be combined into one invoice. If there are multiple different locations, multiple agreements can be made and added to the same consolidated invoice, which simplifies the customer’s financial management.”
All safe insurance
“A comprehensive insurance can be included in the financing agreement, which is very comprehensive and more affordable than property insurances for housing cooperatives. The All Safe insurance has a small deductible (200 €) and a fast compensation service, which covers either the replacement costs of the device or the purchase of a similar new device with the deductible deducted.
This article is an ai-generated translation of the original article in Finnish.
