10th May 2012
Majority of IT vendors now say provision of finance is core to their sales
56% of IT vendors say that the
provision of finance is now core to their sales offering,
reveals research by Syscap the leading IT finance provider.
Syscap's survey shows that another 33% of IT vendors say they
now offer finance whenever their potential customer raises an
objection over the cost of the IT that they are considering.
Syscap explains that the last four years has seen a growing
consensus amongst IT vendors that offering customers the finance to
make IT purchases is essential to completing sales.
Explains Philip White, CEO, of Syscap: "Businesses want to
invest in IT but the economic uncertainty means they are reluctant
to reduce their own cash balances in order to fund that
"Many businesses are finding it hard to get bank funding to make
that IT investment so either the IT vendor helps arrange finance or
the sale will not take place."
"IT vendors tell us that lack of available funds amongst their
customer base is the single biggest impediment to making a sale and
that makes the ability to offer their customers finance a real
Syscap says that it has invested heavily to ensure that IT
vendors who use Syscap to provide finance to their customers can do
so in as rapid and as seamless a manner as possible.
This includes their online finance quoting system with a unique
online "decision in principle" feature which allows IT resellers to
identify their customer's finance status at a glance.
Syscap's research shows that 58% of IT vendors consider a
mechanism that will quote them the price of finance for their
customers to be the most valuable feature of an online vendor
finance system wereas 14% said that providing a credit opinion on a
customer would be the most valuable feature.
Data out last year from the FLA (Finance & Leasing
Association) shows that the amount of money provided for vendor
finance jumped 24% in the six months to end of July 2011 to
£2.6billion up from £2.1billion in the same period last year.
Syscap says that data also shows that the use of vendor finance
is spreading across sectors outside of IT such as machinery and