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Late payment is a fact of life but does it have to be?

Cash flow is again top of the agenda for small businesses with a new study showing that the majority of businesses make late payments to suppliers. The Mastercard study found that a full 57% of businesses had deliberately delayed payments. You can read the full study here.

Despite 90% of businesses acknowledging that suppliers should be paid promptly, nearly three quarters of businesses admit that late payments are a fact of life. Cash hoarding has far-reaching impacts throughout the supply chain as many small businesses will know.

In recent years, the operating environment for has been difficult for all businesses. In the IT world in particular, IT resellers have been squeezed not only by the constraints on bank lending but by SaaS innovators which have changed customer perceptions of how to pay for software. When combined with a culture of late payments that seems to be growing, it creates particular challenges for smaller vendors and resellers.

Syscap has been providing IT finance solutions for nearly 25 years. We have worked closely with our partners and clients to respond to some of these challenges. It led us to launch Support Funder earlier this year. It allows vendors and resellers to receive upfront payments for annual revenues and removes the need for monthly invoices or administering direct debits.

We also understand that for many resellers the most important part of their business is the services and maintenance that they sell alongside the hardware and software. So we have structured the product to include intangible services. If you would like more information about Support Funder, contact us.

At Syscap, we often talk about our business being innovative and dynamic – but innovation is only relevant if it meets a customer need. To use a familiar turn of phrase, “Necessity is the mother of all invention”. Support Funder is the invention but the necessity is the culture of late payment which seems to pervade the business environment.

We often hear from our channel partners about how they have had to offer monthly direct debit options because a competitor is prepared to do it or resellers who are spending time and effort chasing invoices – even for relatively small amounts of money.

To return to our analogy, cash flow is the necessity and Support Funder is the invention. But Syscap and our channel partners are working together as proud parents in this situation. We hope that you keep giving us feedback, telling us your concerns and sharing experiences. It drives us to create better products that meet your needs. We look forward to hearing from you.

Philip White, CEO

Syscap announces partnership with Swiftpage

Exclusive deal offers funding options for resellers
Syscap, the leading independent provider of finance, is partnering with Swiftpage to offer a new funding solution to its resellers. The new product can be used to spread the cost of Act! and Saleslogix licenses and annual maintenance plans over a 12 month period.

Swiftpage is a leading provider of integrated marketing and CRM solutions and is in the process of rolling out Act! Finance to its Platinum, Gold and Silver partners. The deal will allow Swiftpage resellers to present spread payment facilities to its clients – removing the upfront cost for clients.

Act! Finance runs on a revolving credit facility so that customers can continue to use the facility year after year. Documentation has been kept simple and, with no underwriting and no cost, the deals allow clients a more accurate comparison with subscription-based products.

Philip White, CEO of Syscap, says: “As an innovative software vendor, we are delighted that Swiftpage is leading the way in innovating payment terms for its clients. In a dynamic software market, the customer experience of buying a product is increasingly complex. Flexible finance options simply mean that the customer can align their purchases with their use of the product.”

“Swiftpage is committed to working with our channel partners to grow revenue by delivering a customer-centric sales process. Partnering with Syscap enables us to bring innovative funding solutions while Syscap takes care of the finance,” said Lindsay Boullin, Vice President and Head of Marketing and Operations for Swiftpage International.