Security distributor e92plus has launched a new financing arm to help partners deal with the demand for consumption-based models, according to marketing director Neil Langridge.
The new division, e92capital, will provide a range of funding deals to partners, ranging from rental and leasing deals to short-term funding.
Langridge told CRN that end-user demand for consumption-based payment models is making it difficult for partners to push through larger deals.
"We saw demand in the market from both an end-user and a partner perspective to support more flexible billing, when the vendors themselves can't do it," he said.
"With us in the middle we can add some value because we deliver from a billing perspective that is right for the end user, but keeps the channel flow working."
Financing has long been an established service that distributors offer the channel, but Langridge said the formation of a dedicated division will encourage partners to discuss funding options earlier on in the sales process.
Doing this, he explained, can encourage users to increase the size of their projects because they know that stable finance options are available.
"Obviously there are things such as extended credit which a lot of people have done for a while, but we're trying to make it a more strategic part of the opportunity," said Langridge.
"Rather than just looking at how we can facilitate what is already happening, we're looking at growth. We want to be involved early on in the deal; we don't just want to talk to the IT team [of the customer], we want to talk to the CFO.
"You can often make these projects bigger, rather than saying ‘here is the deal, it's getting close to the end of the quarter and budgets are tight, what can we do?'
"Let's have these conversations at the start because if we can put something together that is going to work for them from a finance perspective, they may be able to afford a bigger project."
Langridge said that the new division has targeted partners that work with e92plus in the early stages of its operation, but is open to working with resellers that are delivering projects with vendors that the distributor doesn't carry.
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