There are several reasons why IT vendors should consider partnering with a business finance provider:
- Increased sales volume at a higher margin
- An accelerated sales cycle and improved customer retention levels
- Potential to drive more revenue whilst maintaining within budgets
By overcoming common buying objections around cash flow and budgetary constraints, IT finance can give end users the flexibility to extend their access to capital by introducing payment over time options to fund major investment in new software or hardware. In turn this ensures your solutions and services are easier to buy whilst enabling your customers to remain competitive and maximise operational efficiency.
Business finance helps to attract and convert sales prospects who couldn’t otherwise afford your solutions by allowing them to spread the costs on a monthly basis, as opposed to having to commit to software licence and support fees up-front. This option is increasingly appealing to organisations who are looking to transition to the latest cloud technologies and motivated by the elasticity and time to market IT finance provides. There are obvious cost advantages to be gained too by moving from a traditional Capex to an Opex model through the ability to offset IT expenditure as an operating expense rather than an equipment asset, with reductions in tax further benefiting a business’s bottom line.
Increasingly more vendors are looking to include the cost of implementation in their finance offerings, whilst deferring the first payments until after the installation is complete. This makes the sale much more palatable when presenting to your customer and justifies the internal rate of return (IRR) when they are assessing the benefits of potential investments.
Despite the obvious benefits, there are a number of considerations IT vendors and resellers should make before deciding which partner is right for them to differentiate their sales model against their competitors. When it comes to business finance, one size certainly doesn’t fit all. At the outset it’s vital to determine what your primary objectives are before outsourcing to an IT finance programme.
Do you want to make your customers more ‘stickier’, as in the case of Autodesk who were able to move more customers onto multi-year renewals using Vendor Finance. Or, perhaps you’d like to increase your average order value and acquire more customers by positioning finance as a better way for them to pay? It’s important to choose a finance partner who not only understands your goals and is prepared to work closely with you to achieve them, but one that also has an implicit understanding of the IT industry with a demonstrable track record of working with leading software vendors.
Vendors should seek an IT finance partner who can offer tailored training programmes, managed by one dedicated point of contact, which are supported by specialist marketing collateral to help sales teams close more deals. We can provide you training, in regular modules, to bring all of your sales colleagues up to the same level of understanding. The training can also be delivered within a ‘workshop’ environment which is more interactive and typically yields excellent results. At Wesleyan Bank, we have run a number of successful rewards programmes with great prizes to acknowledge sales people for good performance. Furthermore, this helps to better engage and incentivise resellers to increase their conversion rates and margins.
Understandably, you want to choose a partner who is the right fit for your customers but in the long-term they must also be the right fit for you. Our vendor team are dedicated to supporting you and your customers and as part of the Wesleyan Group of companies we can also help you with a whole host of financial solutions.
But what does this mean to you? Additional investment has been made to strengthen our partner portal to offer more relevant content, in addition to providing extended training and support services. We are also committed to helping our partners to grow by providing funding to finance investment in new technologies, such as data centres. In addition, we assist partners to increase margin on their deals by prime contracting customer contracts through purchasing the required partner services and software licences upfront in bulk.
Don’t let IT budgets stifle your business growth. If you want to successfully embed finance into your operational processes and remove potential barriers to sale, contact us for more information about how the Wesleyan Bank Partner Programme can help.