IT Vendors Offering Finance To Customer To Convert Leads

New funding service for maintenance and support contracts expected to drive continued partnership growth

The number of IT vendors offering finance to potential customers to help convert business leads into sales is continuing to grow strongly, as securing bank lending for IT investment remains tough particularly for SMEs, according to our research.

In the past year we have seen a 19% jump in new partnership deals signed with IT resellers keen to offer a finance option to customers as part of their sales process. Signing 350 partnership deals with IT vendors last year, up from 294 in the previous 12 months this has continued a strong upward trend over the past three years.

Chief Executive at the time Philip White commented, “In the last few years, the ability to offer finance to clients has become a crucial part of the sales process for many IT vendors, enabling them to maximise the number of enquiries and leads they can convert into actual business. From what we are seeing this trend shows no sign of abating.”

“While businesses’ desire and need to invest in IT may have returned since the recession, many SMEs in particular are still having trouble securing the funds to make the necessary upgrades to support their business growth and development. Bank loans, especially for IT investment, are still in short supply.”

“Providing asset finance is the obvious solution so that IT vendors can help put clients in a position where they can green-light investment projects that would otherwise have been out of reach.”

New funding service for maintenance and support contracts expected to drive continued partnership growth

The new stand-alone funding product, which is accessed completely online, enables more businesses to take up contracts for maintenance of IT equipment and software as well as for support such as help-desks and staff training.

Philip White says: “Maintenance and support contracts are valuable product for vendors, and help customers to get the most out of new IT acquisitions.  But businesses can be reluctant to pay for these contracts up front, and funding a monthly payment option themselves is not always attractive for vendors.”

“Vendors tell us that most businesses recognise that technology maintenance and support are desirable.  They know that they need help to make the most of the technology they are buying rather than just using the basic functionality, but unfortunately, there isn’t always a way to make this support immediately affordable for them.”

“With Support Funder, we are excited to be the first to fill that need, and to put this new service online so that it can be accessed instantly.  Providing targeted financing for maintenance and support products should help to grow what is already a very important market for vendors.”

Support Funder is based on proven technology and processes used successfully for two years as the Law Society’s recommended finance provider for regulatory fee renewals.