At Quadrent we take a customer-first approach by working with clients to solve their business problems. We have a blog series to highlight some of the problems we have solved and how it may relate to other businesses. If you have a problem to solve stretching across alternative payment solutions; asset management including disposing of assets; IFRS 16 / AASB 16 compliance then we can help find a solution for you.
A DIFFERENT. SIMPLER. BETTER APPROACH TO CUSTOMER PROBLEMS
Blog #1
CUSTOMER PROBLEM
A longstanding Quadrent customer is one of NZ’s largest telecommunications and ICT providers.
After winning a large tender for IT network infrastructure, to be delivered “as-a-Service”, (aaS) the customer needed to purchase many millions of technology assets in order to build a new network platform.
They had recently invested in core network upgrades which resulted in a shortfall in Capex required to fulfil the “as-a-Service” platform build.
Furthermore, having to pay for the network platform would mean that the aaS contract would deliver net-negative revenue upfront. In addition, the significant licencing and maintenance costs in the network platform would have to be funded by Opex, hurting its key EBITDA financial metric.
THEY CAME TO QUADRENT FOR A SOLUTION
We solved the problem by using leasing under IFRS 16 to give our customer access to:
- a substantial, cost-effective alternative funding facility
- the ability to book the investment in the network platform as an upfront, margin-loaded product sale
- protection and improvement of EBITDA by converting licensing and maintenance costs from Opex to Capex
Quadrent’s contracting expertise and intimate knowledge of the application of new IFRS 16 accounting standards, enabled us to tailor and uniquely optimise the aaS network platform funding structure for our customer.
Quadrent was able to solve the challenges that our client faced, and these customer needs are continually used to inform our service and solutions so that our customers remain front and center in everything we do.
This is the Quadrent way – a different, simpler, better solution to equipment finance and asset management.
Quadrent is Australasia's leading and most trusted equipment financier and lease portfolio software provider. We enable you to deliver your technology solution via a leasing structure, and manage and report on your lease & asset portfolio for compliance with IFRS 16. Find out more about our services.
LOIS provides you with a consolidated view of all leases within your business structure and full IFRS 16 compliance, whether it be one entity or a global corporate. LOIS refers to Quadrent’s Lease Optimization Information System, which is a fully integrated portfolio and asset management tool for all your IFRS16 lease accounting compliance. We operate it under a master agreement. Plus, we’re the only supplier in Australasia. Read more about LOIS.
If you're interested in understanding more about IFRS 16 Compliance and LOIS, here are a couple of resources we can provide:
- Read more about IFRS 16 considerations and COVID19.
- Read about LOIS features and benefits and the clients that are already on board with us
- Explore the pros and cons of using spreadsheet applications such as Excel for the transition to IFRS 16 with this short whitepaper (15-minute read).
- Let our recent survey results from LOIS customers demonstrate the value of the product (3-minute read)
- Understand the pros and cons of leasing business assets with our whitepaper (15-minute read).
If you found this blog interesting, read blog #2 and blog #3 in our Solving Customer Problems series.
You might also like
