Unlock Growth with Innovative Vendor Programs for Financing Technology

If you’re a technology OEM, distributor or value-added reseller (VAR), making it easy for your customers to buy your product or service is important. Vendor financing programs can open doors to new customers and make it easier for existing customers to make purchases from you.

In a vendor financing program, a financing provider partners with OEMs, distributors and VARs to provide financing to their customers – the end-user businesses that make purchases from them. In the technology sector, vendor financing programs can apply to all types of purchases for hardware and software, and for applications ranging from cloud storage and data connectivity to networking and data security.

Vendor financing programs
Providing diverse financing options to customers can help them purchase and upgrade technology resources more affordably. Tailored solutions remove liquidity constraints, and can offer flexible terms and quick approvals. The result is a positive cycle: You increase revenues to use for growth initiatives while customers can benefit from unique financing structures to accelerate their own growth.

These commercial technology financing programs include options such as:

• Tech equipment leasing. Offering customers the ability to lease technology equipment can make it substantially easier for them to do business with you. The pace of advancement in technology can make it very difficult, if not impossible, for companies to remain up to date if it means continually purchasing new equipment and systems. But leasing programs allows options. At the end of a lease term, they can return, upgrade or, in some cases, they may choose to buy equipment outright. They are managing their cash flow and you – as a technology OEM, distributor or VAR – are developing an ongoing relationship with a customer.
   
• As-a-service financing. In this business model, a product or service is offered on a subscription basis. For businesses reliant on products and services requiring up-to-date technology, purchasing new systems and equipment on a constant basis can be severely cost-prohibitive. Acquiring what they need, when they need it, on a subscription basis lets them access the latest technologies while reducing expensive up-front outlays and maintaining cash flow.
  
  Selling via a monthly payment can help you become more competitive – and help avoid the potential risk of discounting equipment to sell on a traditional-purchase basis. Plus, you gain both a source of recurring revenue and a recurring customer. You can even work with a financing provider to develop unique as-a-service offerings, such as taking ownership of equipment and leasing it back to the customer. 
  
  However as-a-service programs are structured, they can provide revenue to grow. OEMs, distributors and VARs can use the revenue to develop and introduce new products and services, extend marketing efforts, expand into new geographic or demographic markets, make strategic acquisitions or pursue other growth initiatives.
   
• Private-label financing. In private-label, or white-label, financing, a third party – a financing provider – offers your customers financing under your name. A strong financing partner can help set up as well as execute the programs; they can even include as-a-service programs. By operating as an extension of your business, a private-label financing program eases logistics for you while making the financing process more efficient for customers. When the financial provider is an expert in your industry and understands your business, you also can more easily tailor programs for your specific needs and those of your customers.

Benefits
Innovative vendor programs for financing technology can drive sales, improve cash flow and give you the ability to further develop your business. You may invest in new opportunities, better navigate market fluctuations or strengthen your supply chain.

Mitsubishi HC Capital America is a commercial finance company that provides customized solutions to help organizations of all sizes accelerate growth. Our experts throughout North America develop comprehensive financing solutions that help businesses unlock growth and achieve sustainability goals. To learn more about accelerating growth through vendor financing programs in your business, contact us.