Customer expectations have changed since the pandemic. In the world of super-fast online deliveries, consumers have become accustomed to agile, efficient service, cementing what many are calling a ‘want it now’ culture.
Research published this year by Statista found that 41 per cent of respondents worldwide expected to receive an online shopping delivery within 24 hours, and 24 per cent wanted it in less than two hours.
As intermediaries between the supplier and customers, the channel provides a service that goes beyond just speed. Added value – whether that’s through additional product features, extended warranties, great customer support, supplemental hardware or training services – is key.
And it’s often the relationships built through these added services that grow customer loyalty and encourage repeat business.
However, in a fast-paced environment, with organisations relying on a plethora of technology to keep employees working productively in hybrid roles, businesses are looking for VARs who not only offer great benefits, but can help them get the technology they need, quickly.
A big sticking point which slows down resale deals is the negotiation of payment terms, especially for resellers with an operational expenditure model. Customers needing to seek their own finance will usually go through a long process. That could involve meetings with their bank and extensive paperwork.
Leasing deals
So, how can VARs offer new finance solutions to remain competitive and offer their customers a faster service? For many resellers, one solution is offering leasing deals to their customers.
Already prevalent in the telecoms sector, leasing is growing in popularity within sectors that have not traditionally offered repayment plans. That includes AV, green technology (such as EV charging and solar panels) and IT.
We work with over 850 partners from a range of sectors including telecoms, IT, AV, energy – and many of those are VARs. For the resellers we work with, providing a fast service in an environment where everyone wants things quickly is a high priority. Their own, and their customers’ frustrations with traditional finance is very often one of the reasons they want to explore leasing solutions.
Flexible and efficient
Leasing models are far less bureaucratic than securing traditional loans. Plus, they are more flexible, making it easier for resellers to help their customers upgrade their technology when they need to.
We’ve designed our leasing platform to provide our customers with the most efficient service possible, and one of the main reasons people choose to partner with us is because we provide one of the fastest services out there.
Instant decisions
We’re the only finance providers for equipment resellers with an API that have a direct link to main banks. This allows resellers to get instant credit decisions for their customers through our online portal. Finance can be offered on the total solution as well, giving customers one simple monthly direct debit for all hardware, software, and service costs.
The speed in which equipment finance can be sourced does not only benefit the end customer. Resellers are paid their full invoice on the same day of installation, so leasing is fast all-round, from the initial credit approval through to the reseller’s invoice payment.
It’s typical for a lease application to be processed in two to three working days, start to finish, which is a world away from traditional banking times.
This insight piece appeared in our December 2022 print issue. You can read the magazine in full here.