Funding an ERP: how and why?
Are you struggling with your supply chain’s efficiency, dealing with outdated processes and trying to control costs? As it happens, the right software and management tools can lead to exponential gains across the board while mitigating many issues that hold many businesses back.
This is where investing in ERP software can result in a positive ROI. For instance, ERP vendors offer specialized solutions to suit your specific operations, providing you with the clarity and accuracy needed to make the most informed decisions in real-time. However, what if you’re having a hard time coming up with the budget to invest in this technology? What you may not know is that there are financing and funding options aplenty for business owners seeking to implement an ERP system.
Let’s explore what your options are. At the same time, we’ll touch on why an ERP solution can offer plenty of growth potential for your business and why it is a must to implement into your operations, no matter the challenges.
Loans and grants
Government loan and grant programs can help manufacturers afford a comprehensive ERP solution. There are a few basic criteria that need to be met for most of the programs:
- Your business must be incorporated for a minimum of three years;
- You have 15 or more employees:
- Your company manufactures or performs research and development within Canada
- You’ve had positive cash flow for the last two years
As for what’s available, there are many choices. For a comprehensive list, watch our on-demand webinar, Money for Manufacturers – Part II Funding ERP to learn about the different grants and programs available for Canadian manufacturers but I’ll cover a few of the most popular programs here.
First, up to $350,000 can be borrowed to improve your facility or to purchase new equipment by way of the Canadian Small Business Financing Program. The ICT Loan, through the Business Development Bank of Canada, can help you invest in hardware, software or IT planning. In addition, the IRAP grant provides $50,000 that can be put towards up to 80 percent of your direct labor costs and 50 percent of sub-contractor fees.
Many smaller businesses take these incentives for granted or don’t have the time and money to invest in actioning them, so it’s a good idea to take advantage of this funding to edge ahead of the competition.
Why choose an ERP
Having ERP software implemented within your company involves plenty of analysis and planning, but it’s more than worth it for the considerable gains offered. For instance, a custom ERP solution can help you streamline operational processes, cut down on costs and material wastage, perform more accurate forecasting and mitigate many financial and compliance risks. With insightful data and more streamlined supply chain management, getting your company to grow and thrive has never been simpler.
Now more than ever, it’s a good idea to obtain appropriate financial relief or funding in order to adopt an ERP solution. When so many competitors have already taken this approach to drive growth and to make improvements to their own technologies, there’s no reason to be left behind.
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