Syscap: SMBs driving channel finance surge

Finance firm claims partnerships with resellers and vendors are on the up as SMB customers demand credit

Strong demand for finance packages from SMBs has led to a boom in the number of tech vendors and resellers looking to Syscap for funding, the firm has claimed.

In the past 12 months, the finance firm has seen a 19 per cent rise in the number of new partnerships it has signed with resellers, which it claims are keener than ever to offer finance as a key part of their sales process.

On top of this, the firm has secured 350 deals with vendors in the past year, also up 19 per cent on the previous year, marking the third consecutive year of growth.

Syscap's chief executive Philip White put the increase partly down to a surge in demand for finance from smaller firms, which are having trouble securing funds from banks.

"While businesses' desire and need to invest in IT may have returned since the recession, many SMBs in particular are still having trouble securing the funds to make the necessary upgrades to support their business growth and development," he said. "Bank loans, especially for IT investment, are still in short supply.

"In the past few years, the ability to offer finance to clients has become a crucial part of the sales process for many IT vendors, enabling them to maximise the number of enquiries and leads they can convert into actual business. From what we are seeing, this trend shows no sign of abating."