For many SMEs, digitisation is no longer a future topic. New software, a modern online shop, a digital inventory system or automated workflows can save time, simplify processes and open new opportunities. At the same time, such projects cost money – and the investment does not always pay off immediately.
So the question is not only what a company wants to digitise, but also how the project can be financed sensibly.
Which digitisation projects need financing?
Digitisation can affect many areas of a business. The costs vary accordingly. Typical examples include:
- Introducing new accounting or ERP software
- Building or redesigning an online shop
- Digitising sales and customer processes
- Introducing CRM systems
- Automating recurring tasks
- Purchasing hardware, servers or IT infrastructure
- Developing own software or a digital application
- Digitising production or logistics
Costs are not limited to software or hardware. Consulting, setup, training, data migration or adapting existing systems can also be part of the project.
Especially for smaller companies, it can make sense not to fund the investment entirely from ongoing liquidity. Even if a digitisation project saves costs long term, the money is first unavailable for other needs.
Financing digitisation: what options are there?
The right financing depends among other things on investment size, project duration and the company’s financial situation.
Own funds are a simple way to finance digitisation. The advantage is that no additional financing costs arise. However, a larger investment reduces available liquidity. For SMEs it can therefore make sense not to commit all available funds to a single project.
Leasing can be attractive for hardware or certain technical assets. The company pays for use over a period instead of funding the full investment upfront.
Bank loans are another option, especially for larger and longer-term investments. They can, however, involve more effort in application and assessment.
Another option is flexible SME financing, where the company can use the credit for different business purposes.
The Kamuno SME credit: flexible for different projects
The Kamuno SME credit can be a way to finance digitisation projects without committing all available equity.
The focus is on flexibility: companies can use the credit for different business projects – for example introducing new software, financing IT infrastructure or delivering a digital project.
That is especially relevant for digitisation. Such projects often change during delivery. Extra software modules are needed, a project expands or further costs for external services arise. The flexible credit line of the Kamuno SME credit gives more security for the unexpected – and costs arise only for the amount actually drawn. The Kamuno SME credit can offer more room to manoeuvre than rigid financing.
Want to know whether financing could be an option for your company? With the Kamuno initial assessment you can check your financing potential quickly.
Don’t look only at the investment itself
For a digitisation project you should not only consider the purchase price. It also matters how the investment affects company liquidity.
An example: an SME invests CHF 50,000 in a new ERP system. Besides licence costs, there are consulting, setup and staff training. Day-to-day business continues. If the full investment is paid from existing funds, the liquidity reserve can shrink significantly.
Financing can help spread the investment over a longer period. The company then keeps more financial room for wages, supplier invoices, running costs or other investments.
Financing should therefore always be considered in the context of the company’s overall financial situation.
Digitisation should pay off long term
Financing alone does not make a digitisation project successful. Before investing, an SME should clarify what the project is meant to achieve.
- Which costs should be saved long term?
- How much time can the new solution free up?
- What additional revenue is possible?
- Which processes become simpler or faster?
- Which one-off and ongoing costs arise?
- How strongly will liquidity be strained during delivery?
The clearer these questions are answered, the easier it is to determine the real financing need.
Conclusion: digitise and stay financially flexible
Digitisation projects can be an important investment in the future for SMEs. At the same time they should not unnecessarily strain company liquidity.
Alongside own funds, leasing and classic bank loans, flexible SME financing can be another option. The Kamuno SME credit gives companies financial room for different business projects – including investments in digitisation.
Anyone who wants to check whether financing is basically possible can start directly with the Kamuno initial assessment.