First, software is generally classified as intangible , making it difficult for banks and finance companies to consider them as collateral. Second, most software companies place some form of restriction on transfer of license ownership or use on more then one computer. This makes it difficult for finance companies to resell or rent products to different companies at lease termination. Desktop software rental increases sales opportunities by creating new options for software acquisition. RentalWare lowers lowers barriers to purchase by substantially reducing the initial cost of entry to software acquisition.
Businesses can now rent or lease software instead of making a large capital expenditure.
This is especially attractive to small and medium sized businesses, who would otherwise be limited in their purchase options. In fact, unless a concerted effort is made on behalf of the sales organization, the majority of interaction with existing customers occurs with the customer support organization. Software rental, on the other hand, not only establishes a recurring revenue stream, but affords the opportunity to interact with existing customers on an ongoing basis. Rental and leasing establishes a communications channel that offers numerous opportunities for new, targeted sales efforts, cross-selling and promotional marketing, and, even, advertising. A customer's decision not to purchase is one of the largest impediments to successful software sales, especially for more expensive software packages.