We are launching a new funding solution to allow resellers to unlock revenue from the UK’s £1.7 billion* IT support and maintenance market.
The new stand-alone online product, Support Funder, allows resellers to receive payment for an annual IT support and maintenance deal at the start of the contract, while clients spread the cost into simple monthly instalments.
Support Funder is already being used by several major Channel businesses, including Iris and Swiftpage. We are also in negotiations with around 50 more IT resellers to use Support Funder.
Contracts for services including maintenance of equipment and software, helpdesk provision and staff training are potentially one of the most profitable parts of the market for IT resellers, although most have yet to tap its full revenue potential.
Until now no funding has been made available to help resellers access this market
We discovered until now, no suitable funding was available to help resellers access this market due to the short-term nature of support contracts. For many IT resellers, this has led to difficulties in securing and maintaining support contracts, as the significant up-front expense involved has acted as a barrier to some clients.
Accepting monthly direct debit payments from clients has also not been a practical option for the majority of resellers, as arranging direct debits through a bank involves significant costs and administration work, and very few resellers are able to accept these payments directly.
Support Funder will provide payment up front to resellers for their support contracts, allowing them to focus on growing their businesses while it takes the administrative burden of collecting the monthly payments from their clients.
Philip White, CEO of Syscap until its acquisition by Wesleyan Bank in 2015 (now fully rebranded to Wesleyan Bank), said: “Most resellers are still struggling to make the most of their capabilities in maintenance and support, and the lack of a suitable funding product has definitely left many of them unable to provide annual support contracts in the best way for their clients.”
“We think Support Funder can be the key that unlocks profits for resellers in this market.”
“Many resellers have told us that they could retain a much higher percentage of their support and maintenance clients if they had the ability to offer financing for the service. With a long history of providing bespoke funding to Channel businesses, this product was a natural fit for both ourselves and our clients.”
Plans to roll out the Support Funder model to other IT services in the coming months are progressing well.
Philip White added, “We believe that there is scope for this funding model to be applied to other services provided by Channel businesses, allowing resellers to offer a better deal to their clients.”
* Source: TechMarketView