Channel Finance 25: Companies H to Z

Overview: The VAR Guy’s Channel Finance 25 is an annual survey from Nine Lives Media Inc. The survey allows VARs to quickly find and explore potential funding opportunities that improve cash flow, speed customer buying decisions, and drive profitable growth.

Neither The VAR Guy nor Nine Lives Media Inc. specifically endorse the companies and funding options mentioned below. This report is meant as a potential first-step guide for VARs that are seeking funding ideas. As with any potential financial engagement, readers should thoroughly research their options before pursuing potential engagements. Since financial needs vary greatly from company to company, the publishers of this report are not in a position to recommend or endorse any specific funding sources.

Channel Finance 25: Companies H through Z

Hewlett-Packard Financial Services

HP Financial Services has more than $11 billion in portfolio assets, $3 billion in annual revenue, $6 billion in annual new volume, and more than 1,100 employees doing business in more than 40 countries. The organization offers certified pre-owned HP equipment, leasing and asset management solutions. Leases are between HP Financial Services and the end-customer, protecting the partners’ credit but maintaining the partner-customer business relationship.

IBM Global Financing

IBM in December 2010 launched simplified leasing solutions for IBM Business Partners. According to IDC (International Data Corp.), the leasing and financing program is straightforward — the partner takes the price of the entire solution, including hardware, software, and services, and divides by 36 to determine a buyer’s monthly payment. At the end of the 36 months, the equipment is owned by IBM Global Financing, at which point the customer can choose to buy the equipment at fair market value, return the equipment, or extend the lease, IDC notes. As part of the announcement, IBM Global Financing committed to 60-second credit approval decisions for transactions financing up to $500,000; the amount can include IBM and non-IBM technology, and applies to hardware, software and services. To participate in this financing program, 70% of the transaction must be IBM-eligible hardware, with the remaining 30% made up of software and/or services.

Ingram Micro Financial Services

Ingram Micro offers purchase orders, flexible financing and preferred leasing to its channel partners. The company’s Ingram Micro Seismic and Ingram Micro Cloud initiatives also connect VARs with recurring revenue opportunities beyond traditional IT product sales.

Key Equipment Finance Inc.

For more than 35 years, Key Equipment Finance has provided equipment financing through the IT channel. Key is one of the largest U.S. bank-affiliated equipment leasing companies, managing approximately $9 billion in assets and over $3 billion in equipment acquired annually. Key serves four market segments:

Lenovo Financial Services

Lenovo Financial Services helps channel partners’ customers to finance an entire solution — hardware, software, service contracts, installation costs, and training fees. Generally speaking, 50 percent of credit applications for deals under $100,000 receive decisions within a minute (for VARs that use Lenovo’s automated credit decisioning tool). Transactions up to $5 million typically are decisioned within 48 hours of Lenovo receiving complete information.

Microsoft Financing

Microsoft offers Total Solution Financing to channel partners. The approach organizes software, services and partner fees as a single monthly cost to the end-customer. With the anticipated launch of Office 365 sometime in 2011, Microsoft will also expand the number of recurring revenue opportunities available to channel partners outside of traditional IT product sales.

Navitas Lease Finance Corp.

Navitas Lease Corp. specializes small business equipment financing resources.  Areas of expertise include commercial finance, equipment finance, and hardware as a service (HaaS). Navitas is a direct lender and able to approve A, B and C credit types.

NFS Leasing

NFS Leasing focuses on IT equipment financing for challenged-credit companies.  NFS is the funder and holds leases in-house; the company is not a lease broker. The NFS management team previously worked for companies that focused on computer services and managed hosting.  The company has worked with hundreds of VARs across the IT channel.

Southern Lending Solutions, LLC

Southern Lending has three main lines of business: Securities Lending, PiPE/Structured Equity and Equipment Leasing. For 2010, Southern Lending closed nearly $18 million in total lending volume, managing engagements in four countries.  The company has also opened a Singapore office for Southern Lending Asia.

Synnex Corp.

Synnex offers financing options and credit services to channel partners. The credit services include flooring, Joint Purchase Orders, Purchase Order Assignments, Leasing, Agent Model (End-User Billing), Escrow Accounts and Third-Party Accounts Receivable Financing.

Tech Data Corp.

Tech Data’s Credit Services department offers partners free floorplanning, leasing, open account terms, direct debit, electronic funds transfer, plus standard services such as credit cards, COD, cashier’s checks, and more.

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