VARs flock to vendor finance as banks say no

Finance provider Syscap sees sign-up rate to its channel scheme triple year on year

Finance provider Syscap claims it has seen a threefold annual jump in the number of VARs coming to it for finance.

Syscap said it has signed up 294 new partnerships on its Option One vendor finance scheme in 2012, up from just 100 the previous year. The sharp jump highlights subdued high street lending to SMBs, it claimed.

Option One sees vendors work with VARs to help them grow sales through a finance package which includes payment collection, admin and sales support advice.

Syscap chief executive Philip White said vendors are keen to work with it on Option One to help resellers unlock sales.

"Independent financing continues to grow while bank lending remains sluggish, so vendors have recognised that it represents their biggest opportunity for growth now, and for the foreseeable future," he added.

"Vendors are keen to work with us to embed finance into their sales processes and propositions and to make sure that they are using our flexible payment offerings as effectively as possible to help their customers make the technology investments they need."

In 2011, in order to keep up with increased demand, the finance firm launched Syscap Online, which it claims has made life easier for VARs who can use its decision-in-principle tool which allows them to know if they can get finance in seconds.