UK channel sees surge in financed sales deals
Research predicts that the number of financed sales in the channel will reach 41 per cent in three years
One-third of all sales in the channel are funded using asset finance, according to research from Siemens Financial Services (SFS).
Siemens straw polled 100 directors in the UK IT channel and found that 34 per cent of all sales currently use financing, and over the next three years this figure is expected to grow to 41 per cent.
Sixty per cent of respondents said that the channel “does not currently harness finance to the maximum benefit as a sales-aid tool”.
Peter Austin, general manager at SFS, said: “We know that firms in the UK are under financial pressure. It is encouraging that those who buy through the channel are now being offered a financial package in one-third of cases.”
However, Austin added that two-thirds of IT channel sales are not financed, which is a wasted opportunity.
“In our research, the overwhelming majority of those who did not offer finance at all said that they presumed their customers arranged it themselves, so they know the demand is there,” Austin said.
“I believe an outmoded view of the leasing industry is to blame; it is perceived as complex, riddled with legal jargon and paperwork.”
Ash Hussein, sales and marketing director at VAR Axial Systems, said: “We have been offering finance for a number of years, but have found no one has taken it up. That may be because we mainly deal with larger corporate and financial companies.”
He added that finance may be more suitable for SME end-users who see a benefit to splitting costs over time.
Mike Lawrence, managing director of VAR Bentpenny, said: “We offer finance, but it is not taken up very often. Finance in the channel has never been that popular.”
He added that Bentpenny deals with businesses in two categories: firms that already have the money in the bank and firms that already have enough financial backing.
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