Resellers urged to look at point-of-sale finance

Resellers urged to look at point-of-sale finance

As demand for finance to fund IT purchases grows, the channel could be cashing in

Resellers have been urged to jump on the finance bandwagon following the release of figures suggesting demand for asset finance on IT purchases has never been higher.

More than four of five (83 per cent) respondents in a survey by UK channel finance and leasing firm Syscap indicated they would use finance to fund hardware and software purchases. This is up from 72 per cent a year earlier.

Philip White, chief executive to Syscap, said: “The number of firms interested in IT financing has marginally increased.

“In part this is due to the economic climate, but it is also because businesses are becoming more prudent in their investment decisions.”

Rival Siemens Financial Services (SFS), said the small sample size of Syscap’s survey meant it offered a restrictive view of the market, but agreed with the findings.

Peter Austin, general manager of flow business at SFS, said: “We put the figure at about a third, which has increased from a fifth in three years. The IT channel still does not embrace point-of-sale finance in the same way as the vending or reprographics sector.
“What it boils down to is laziness of sales people. If finance is introduced early in the sales cycles it becomes part of how you operate.”

Ashley Snelling, managing director of ProCurve reseller ADA Networks, said he has only been involved in one or two finance deals in ADA’s 15-year history.

“We do not want to dilute our focus on the things that we are good at, which is networking,” he said. “Finance is a growing expenditure for customers, but how much of a viable business proposition is it for IT resellers?
“Most customers wrap up their equipment in one large deal with a big leasing company.”