Syscap trebles number of new vendor partnerships in another consecutive year
The number of IT resellers using vendor finance to support their sales growth is continuing to increase, according to Syscap, the UK’s leading independent finance provider.
Syscap has seen this increased recognition of the importance of financing reflected in a near trebling of the number of new ‘Option One’ vendor partnerships it has signed in the last twelve months. 100 new Option One partnerships were signed in 2011, rising to 294 new partnerships during 2012.
Syscap explains that many IT vendors now see financing options as the most effective way to unlock sales, because SME lending by High Street banks remains subdued, whereas the independent financing industry has been successful in expanding its funding to businesses.
Syscap points out that the use of financing by businesses has grown by 5% over the last year. During 2012 the financing industry lent a total of £14 billion (excluding fleet purchases) to UK businesses.
Philip White, Chief Executive of Syscap, says: “Independent financing continues to grow while bank lending remains sluggish, so vendors have recognised that it represents their biggest opportunity for growth now, and for the foreseeable future.”
“Vendors are keen to work with us to embed finance into their sales processes and propositions and to make sure that they are using our flexible payment offerings as effectively as possible to help their customers make the technology investments they need.”
Syscap works alongside its Option One vendor partners to help them grow their sales, offering end to end finance packages, including administration and payment collection, as well as sales support material and advice.
It responded to increased vendor interest in financing by launching a substantial upgrade to the Option One online portal – Syscap Online – and to the Option One partnership programme in July 2011.
Syscap Online now includes an online ‘decision in principle’ system which enables resellers to know within seconds if their customers would qualify for financing. Other finance providers can take days to provide a quote.
When Syscap Online gives a ‘green light’ to a financing request, the instant response includes a ready-to-print finance quote, along with an analysis of the cost of the financing package compared with a cash purchase to help resellers to demonstrate to their customers the value that financing offers.
Philip White comments: “Vendors have responded really well to the online decision service because it takes the pain out of arranging finance for their customers. They know immediately if they can finance a technology purchase. This makes it much easier for them to make a positive decision than if they have to go off and research their options themselves. It also allows them to increase their business offerings by offering a viable payment solution”
“It has become an absolutely integral part of the way many of our Option One partners work.”