1. Manage cash flow to maximise available funds.
Managing cash flow is very important for resellers right now, as doing so will keep their business in the black despite slow periods and position them for growth when the market turns. As financing for purchases accelerates accounts receivable payments, even small attach-rate increases would free up significant cash flow to pay bills and make investments in the business.
2. Give customers managed-expense options.
Today companies are more interested in having predictable expenses that they can forecast. The trend is moving toward operating expenses rather than capital expenses.
This is no different from the trend that is taking place across the channel toward virtualised technology such as managed services and cloud computing. Operating leases, for instance, provide a pay-as-you-go plan that can be easily managed as environments, technology and financial positions adjust to market conditions.
3. Help customers bridge the gap until reimbursement funds are available.
Resellers can accelerate sales by integrating finance options such as operating leases in their sales proposals. This allows the customer to make nominal, or even defer payments, until these financial incentives can be realised while still providing for the option of ownership at the end of the contract term. This concept can apply to any new technology or focus area.
4. Present financing that matches the solution and market.
Know the customer’s financial position and propose financial solutions that address their needs in terms of cost of capital, return on investment and accounting methods utilised, among others.
5. Build in some form of a return-on-investment or total-cost-of-ownership model into sales proposal tools.
Many resellers engage financing in the quote-forecast and -close stages. They would be more successful if they integrated financing into the propose stage. This allows the seller to present the metrics and costs of making the purchase along with the profitability potential. Equally important, the proposal also includes options for financing the solution.
6. Keep up the communication with the distributor.
It is important to remember to speak to your partners about what you are trying to achieve and any challenges that you may have. Being fueled by information about what you desire will help Arrow ECS find the right solution for you.
7. Align with a distributor that provides a wide selection of creative financing solutions to put you in the best position to achieve your sales plans while meeting the needs of your customers.
Large, global distributors like Arrow ECS have the strength and stability that resellers can draw from. The most successful resellers develop a purchasing plan with their distributor that allows for a smooth flow of their orders based upon customer purchasing habits, credit strength and their own financial growth. The right financial solutions can solidify the sales process as well as improve your financial strength. An effective financial solutions plan can eliminate end-of-cycle fire drills and ensure that your open terms credit line is available when needed.
Also, distributors can help resellers manage their financing so they can focus on being a selling machine. Those like Arrow ECS that integrate their leasing services representatives into their sales organisation and have financing experts in close geographic proximity to resellers and their customers can provide personalised support to best meet their needs. They can manage resellers’ portfolio data and provide periodic reports showing when their customers’ lease deals end, thereby helping resellers generate more leads.
In addition, distributors can manage the quoting and contracts process for resellers, saving them hours of work effort. Some distributors also will provide training and educational sessions to help maximise cash flow and identify effective financial solutions for resellers and their customers.
8. Consider leases first before looking at other financing options.
Leases do not typically place covenant requirements on the reseller, and they offer quicker access to funds. In addition, resellers do not typically incur costs related to leases whereas loans come with interest charges.
9. Be a smart shopper and look for financial solutions that deliver the best value for you and your customers.
Captive financing programmes generally offer the best rates and participate in brand buy-downs. Private-label programmes are another option when captive programs aren’t available or don’t work for a specific deal. Look for programmes that match financing to the solution and work with the financing company to negotiate variations to best meet your needs. Again, distributors can be particularly helpful with assisting in those negotiations.
10. Learn to manage the deal margins with financing.
The right financing structure can create a competitive edge as well as ensure profitability of the deal. The most successful resellers generally integrate financing into their process. Deliver “true” financing solutions to your customers. Build trust with your customers by offering financing that has no hidden costs or fine-print loopholes.
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