It is hard to run a profitable business with a restricted cash flow so gaining an alternative source of funding is important.
Vendor financing for resellers is getting more popular as more customers seek alternative financing that makes it affordable for them to expand.
According to IDC, perhaps 64 per cent of vendors are showing more interest in financing programmes than they were six months ago.
End users that take advantage of vendor financing may of course have more money left over to spend with their resellers.
And access to better products and services may help the customer grow his or her business. Customers may increase productivity and cut operating costs while keeping their outgoings low via vendor credit.
A successful, profitable customer may buy more product from the reseller. Channel relationships are circular – the well-being of the customer is inextricably linked to that of the reseller.
As such, this service should become a key part of what resellers offer.
Businesses know about many different sources of credit. But the opportunity now is to promote vendor financing as the number one choice.
Customers should not have to enquire about financial help. Instead, it should be built into the contract – as an option that is always available to the end user if required.
While the economic situation is still difficult, resellers are in a great position to move forward and continue to be successful.
End users may need financial help for some time and resellers are in a unique position to be able to offer that as part of a secure, developed relationship with their customers.
The channel has proven its resilience, developing better and ultimately more profitable ways of doing business and in doing so, has gone a long way to defying the downturn.
It is now down to every business in it to continue that push forward.
Kevin Green is financial solutions manager for the UK and Ireland at NetApp
Businesses also admit to holding data without permission of subjects
Zedsphere says end-point security vendor's offerings will be a 'key' feature of its wider portfolio
New acquisition will bring UK cloud service provider's global headcount to over 700
Law firm claims that Oracle lied to investors over what is driving its cloud revenue growth and boosted sales through 'threats and extortive tactics'