Instead of big, up-front, capital expenditures, which have complex budgeting and accounting implications, papers can bundle software and support and spread the payments over a period of time. Plans can cover the purchase of the solution, or just the use of the software.
"Capital purchases often require a seven-year write-off period, which is often far too long in today's rapidly changing market place" net-linx Executive Vice President Albert de Bruijn said in a statement. "This puts huge pressure on newspapers to pick software that will withstand future changes." The new plans, he continued, "are not only easier on the cash flow, they allow newspapers to take on new solutions more aggressively," with the possibility of change if conditions warrant it, without high cost.
Perth-based West Australian Newspapers and Brazil's Folha de Londrino already have utilized such payment plans to upgrade or buy net-linx advertising systems (E&P Online, April 12 and 16).
By: E&P Staff Effective immediately, newspapers can purchase entire systems or modules from Sacramento-based net-linx using "operating payment plans" designed to relieve the pressure on capital purchases.