iomart receives asset finance solution
- Lombard’s credit line facility helps reinforce iomart’s position as market leader
- iomart seeks additional and comprehensive funding solution for IT and capital expenditures
- Flexible funding from Lombard ensures strong positive growth for iomart whilst maintaining working capital
Founded in 1998 iomart Group is one of Europe’s largest suppliers of managed hosting and cloud computing services. It serves over 300,000 customers daily enabling companies and organisations to reduce the cost, complexity and risks that come with maintaining web and online applications.
For the past ten years iomart has been at the forefront of the UK’s technological transformation, operating in an industry driven by innovation where it is vital to stay ahead of the latest advancements in technology. A change in strategy meant iomart required funding to purchase IT equipment to provide managed hosting services to its customers.
Craig Hills, Relationship Director at Lombard, explains: “iomart required a finance partner that could provide a worry free flexible asset finance and end of life disposal solution. Working with Nigel Barclay, Relationship Manager at Lombard Technology Services, we were able to handle all WEEE (Waste Electrical and Electronic Equipment) compliant disposal responsibilities and created a credit line facility. Lombard’s unique IT funding solution met the customer’s requirements and allowed them to maximise cashflow to assist in future growth.”
Lombard proposed a tailored sales and leaseback solution which would enable iomart to fund the purchase of assets without drawing on existing capital. Phil Worms, Director of Marketing at iomart, explains, “Lombard’s funding has supported the company’s period of growth and enabled us to use our own resources to invest in marketing and services, which in turn will support the business further. We have an average spend on IT equipment per month which is usually batched up quarterly, so it was great to find out that Lombard could combine deals on a quarterly basis and then fund via sales and leaseback.”
iomart is now in a unique position in its market place. Lombard’s funding has assisted iomart in growing its managed hosting and cloud business through the funding of IT equipment purchases, whilst effectively managing cash flow.
Lombard will continue to work with iomart as its asset finance partner, supporting the growth of the business within the market in which it operates.
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