Scalable solutions: Why pay-per-use is critical for growing businesses

September 20, 2024
Pay-per-use models are particularly attractive for growing companies - but why exactly?

In a world where markets are growing rapidly and changing just as quickly, companies are increasingly faced with the challenge of adapting their production capacities flexibly and efficiently. Traditional models, which require high initial investments in machinery and equipment, often prove to be a hindrance. This is where pay-per-use models come into play, offering a scalable and cost-efficient alternative. Pay-per-use is therefore particularly attractive for growing companies - but why exactly?

Flexibility with volatile production volumes
‍Growing
companies, especially those that are highly seasonal or subject to fluctuating demand, benefit from the flexibility offered by pay-per-use models. Instead of investing large amounts of capital in the purchase of machines, companies only pay for what they actually use. This means that when production needs to be ramped up, additional machine capacity can simply be taken up without burdening the budget with long-term commitments. If demand falls, expenditure is reduced in proportion to usage.

This flexible approach enables companies to adapt quickly to market requirements, giving them a significant competitive advantage.


Low entry hurdle for investments
‍Another
key advantage of pay-per-use is the low entry hurdle. Especially for start-ups or small and medium-sized enterprises (SMEs), which often have limited financial resources, it is not practical to purchase expensive machines or systems. The pay-per-use model allows these companies to invest in high-quality, modern technology without tying up their capital from the outset.

Instead of entering into long-term financing commitments, growing companies only pay for the actual use of the machines. This not only promotes liquidity, but also minimizes financial risks - a decisive factor when it comes to growing and scaling a company.


Optimized cost planning and efficiency
‍One
of the biggest advantages of the pay-per-use model is the optimized cost structure. By linking expenditure directly to actual usage, companies can plan their costs precisely and link them closely to their income. This offers much greater transparency than traditional purchase models, which require a large one-off investment.

In addition, many pay-per-use models include maintenance and upgrades in the service costs. Companies can concentrate on their core processes while the provider takes over the maintenance of the machines. This leads to greater efficiency and reduces the risk of downtime at the same time.


Fast access to modern technologies
‍In
an increasingly digitalized and technology-driven world, it is crucial for companies to always be at the cutting edge of technology. Pay-per-use gives growing companies access to the latest machines and technologies without having to bear high acquisition costs. The model allows them to replace outdated machines with modern solutions or utilize additional capacity as demand increases.

This not only offers technological advantages, but also the opportunity to react quickly to market trends and innovations. Companies that work with outdated technology risk falling behind their competitors - a danger that is avoided with pay-per-use.


Reduced risk in uncertain times
‍Economic
conditions change frequently and are not always predictable. Companies that focus on growth must therefore not only be flexible, but also risk-aware. Pay-per-use models offer a significant advantage here by minimizing financial risk. By avoiding high initial investments, companies remain agile and can adjust their machine costs immediately if the market situation changes.

This agility helps companies not only in boom phases, but also in times of crisis, to reduce their expenditure quickly and still remain operational.


Conclusion: Pay-per-use as a growth driver
‍For
growing companies that require high flexibility, low entry costs and access to the latest technology, pay-per-use is an ideal solution. This model enables companies to quickly and efficiently adapt their capacities to the market while minimizing financial risks. It represents a modern, scalable approach that enables companies to react agilely to market changes and implement their growth strategy without unnecessary financial burdens.



About cap-on
‍At
cap-on,we offer customized pay-per-use and asset-as-a-service solutions that enable companies to use their machine and plant capacities flexibly and efficiently. With our IoT-supported technologies and comprehensive service packages, you can ensure that your production is always aligned with current market requirements. Find out more about how we can help you fully exploit your growth potential while optimizing your operating costs.

More news

Cyber security in the networked industry: how to protect your machines
Cyber security in the networked industry: how to protect your machines

Hacker attacks on industrial plants can have devastating effects. But how can companies protect their machines and systems from cyber threats?

Who is remote servicing suitable for?
Who is remote servicing suitable for?

Remote servicing is becoming increasingly popular as it offers many advantages. But for which companies and industries is remote servicing particularly suitable?

Impact of Asset-as-a-Service (AaaS) on the Total Cost of Ownership (TCO) of industrial companies
Impact of Asset-as-a-Service (AaaS) on the Total Cost of Ownership (TCO) of industrial companies

AaaS is often classified as "too expensive" because only financing costs are compared. Only a comprehensive TCO analysis reveals the many advantages.

Sustainable corporate governance: implementing ESG-compliant practices
Sustainable corporate governance: implementing ESG-compliant practices

Partnership Staufen.ValueStreamer GmbH, ClimateGrid and cap-on: working together for effective sustainability management

Team workshops at the site in Elchingen
Team workshops at the site in Elchingen

Despite the limitless flexibility that today's work structures make possible, regular personal exchange offers many opportunities.

Factory tour at the TKab plant in Heilbronn
Factory tour at the TKab plant in Heilbronn

cap-on was given a factory tour of the ThyssenKrupp Automotive Body Solutions plant in Heilbronn.

Strategic partnership with Neoloan
Strategic partnership with Neoloan

cap-on and Neoloan agree on a strategic partnership.

Press release: Seed investment and strategic partnership
Press release: Seed investment and strategic partnership

thyssenkrupp Automotive Body Solutions and S.D.L. Süddeutsche Leasing AG are investing in the fintech company cap-on.

Handelsblatt: thyssenkrupp invests in fintech cap-on
Handelsblatt: thyssenkrupp invests in fintech cap-on

"The Ruhr Group's body plant engineering subsidiary wants to offer its customers new financing models. In doing so, she is focusing on the trend towards a factory on a subscription basis."

New asset connection: cap-on X ThyssenKrupp
New asset connection: cap-on X ThyssenKrupp

We are pleased that, together with our partners from thyssenkrupp Automotive Body Solutions, we have successfully completed the technical connection of another asset.

Research allowance for cap-on
Research allowance for cap-on

By developing our LiOT platform for equipment-as-a-service, including the risk model for asset financing, cap-on was able to qualify for a research allowance.

Honert law firm advises cap-on on acquisition of thyssenkrupp & SDL
Honert law firm advises cap-on on acquisition of thyssenkrupp & SDL

Led by partner Dr. Kai-Klemens Wehlage, honert provided comprehensive legal advice to cap-on GmbH on a financing round.

cap-on offers holistic technical AAAS solution
cap-on offers holistic technical AAAS solution

As an asset-as-a-service provider and orchestrator, we are proud to be able to offer the necessary technical infrastructure in-house.

Cap-on goes Davos
Cap-on goes Davos

cap-on Co-Founder Andreas Müller with Stefan Kober (Co-Founder Primepulse SE) visiting the World Economic Forum in Davos.

Brainstorming and advisory board meeting with thyssenkrupp AB
Brainstorming and advisory board meeting with thyssenkrupp AB

We were delighted to brainstorm with Falk Nüssle about the joint strategic goals and practical needs following the 5th advisory board meeting of cap-on GmbH.

cap-on at hub.berlin 2022
cap-on at hub.berlin 2022

At the end of June, the Berlin cap-on tech team was at hub.berlin 2022 - "The business festival for digital movers and makers"

Asset-as-a-service from a CFO perspective
Asset-as-a-service from a CFO perspective

Asset-as-a-service from a CFO perspective: What advantages does managing director Rainer Dieck see in the cap-on business model?