More than half of IT vendors say that finance
is core to their sales, according to research by IT finance
provider Syscap.
Syscap’s survey reveal that 56% make that
claim, while 33% say they offer finance whenever potential
customers raise objections about the cost of the IT they are
considering.
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The company says there’s been a growing
consensus among IT vendors for the past four years that offering
finance for IT purchases is essential to completing sales.
Syscap’s CEO Philip White said: “Businesses
want to invest in IT but the economic uncertainty means they are
reluctant to reduce their own cash balances in order to fund that
investment.
“Many businesses are finding it hard to get
bank funding, so either the IT vendor helps arrange finance or the
sale will not take place.
“IT vendors tell us that lack of available
funds amongst their customer base is the single biggest impediment
to making a sale and that makes the ability to offer their
customers finance a real competitive advantage.”
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By GlobalDataSyscap’s research shows that 58% of IT vendors
think that a mechanism that quotes a price for finance is the most
valuable feature of an online vendor finance system, whereas 14%
say that providing a credit opinion on a customer would be the most
valuable feature.
Data last year from the Finance & Leasing
Association shows that the amount of money provided for vendor
finance jumped 24% in the six months to the end of July 2011 to
£2.6bn up from £2.1bn in the same period in 2010.
