Posts tagged ‘Business’

Leasing Software Advantages

There are several different ways of leasing software, and each business has a different software need; but one thing they all have in common is the need for updated software to keep their business running efficiently.

As with any lease program for equipment, vehicles, or computers, the advantage of leasing software is in having access to working capital and bank lines of credit.  Leasing frees up the budget, moving projects forward, and keeping the company competitive.  It benefits both vendors and their clients, by increasing cash flow on both ends.  Their are even vendor specific leasing programs designed for the vendor to offer as an additional service to their clients.

A software to manage assets, accounting, and other business functions, is a valuable asset to a company.  This software becomes a tool to manage equipment, individual, and fleet lease profiles, as well as client portfolios and many other vital functions.  The leasing software should have a familiar graphical interface, customizable screens, and facilitate smoother work flow.  All of this contributes to greater efficiency, fewer errors, and happier customers.

Cash flow should always be prioritized in a profitable business.  More cash on hand means more access to opportunity.  Businesses that have good cash reserves created these reserves with cash flow in mind, which is why leasing software makes solid business sense.  Besides preserving capital reserves, the leasing payments can be separated from the balance sheet, and written off as necessary operating costs.

Again, leasing benefits both the business buying the software, and the vendor selling it.  By moving more software through leases, the vendor has a short sales cycle, and is offering a value-added service that may give them an edge over the competition.  When businesses are renting software, they can see the advantage of low monthly payments, and are less likely to go bargain hunting.

Global Macro Trading Using Options

While the classic global macro trader does directional trades with the outright instrument many are resorting to using options as their primary vehicle to trade stocks, bonds, commodities, and currencies.  There are several reasons for this and many reasons why you may want to look into it.

One of the main reasons that global macro traders are using options more and more is because they are able to absolutely limit their risk as well as gain some cheap leverage from time to time.  When you are long an option you can not lose more then the cost of the option.  This is the same as with the position but the option is always cheaper then buying the outright.  By using options you can use less capital to gain the same or even better returns.  And again the risk is more limited.

Another aspect of options that global macro traders like is that they can easily and cheaply hedge and leverage up on out of the money low probability events.  What would happen if the SP500 drops 20% in a day? Well if you are using the outright futures contract it would take a lot of capital to have that idea on. With options however you can usually buy that option for a few nickels or less.  If it happens you make many multiples of that amount and if it doesn’t happen then you only lose a bit. Obviously this is not the best thing to be buying but think about it and you find other ideas that have a low probability of happening but are not impossible.