Financing firms give channel cold shoulder
SFS urges firms to 'get off their backsides' and find out about VARs' needs
The IT channel has been neglected by leasing and financing companies, according to Siemens Financial Services (SFS).
Financing firms have traditionally targeted the motor industry or photocopier/printing market but avoided the channel, according to Howard Dudley, divisional sales manager at SFS.
"Leasing and financing firms haven't bothered to find out what resellers require. It's time companies like us got off our backsides and spoke to them about their needs," he said.
Dudley added that this could be because complete financing and leasing packages were often put in front of a VAR, leaving them with little control.
"These kinds of packages are mostly delivered by distributors, and I don't think distributor financing packages work. The distributor negotiates with the funder and then gives the reseller the deal. The VAR has no control and the distributor doesn't really understand the needs of the reseller or end-user," he said.
Graham Hilton, director of channel business at IT rental firm Livingston, said dealing directly with resellers was always the best way.
"With a third party involved, resellers are bound to feel like they have lost control and may be concerned for the service to the end-user. But financing and leasing companies must come up with the right products and services to engage resellers properly," he said.
Nick Tiltman, director of credit services for northern Europe at Tech Data, said: "In most cases there is enough open credit around in the channel. But resellers need to be taking more leasing deals into the market."
Dudley said other reasons for neglecting the channel could be that deals can get complicated when a lot of software is involved. "Rules state we can offer leasing only in deals that are less than 50 per cent software or services. We aim to work with the authorities to change this," he said.
LEASE LIKELY
Lease purchase: when customers want to own the equipment but do not want to use their capital budget for a large lump sum payment.
Finance lease: for equipment that is likely to need upgrading in future.
Operating lease: when customers do not plan to keep the equipment for its entire working life.