In the channel, it’s no secret that the key to success for solution providers lies within the appropriate financing for their solutions. So what’s the secret to successful financing solutions? Keeping offerings creative and flexible for partners.
Throughout my career I have talked with channel entrepreneurs who at the time were the masters of start-ups and managing growth mode at their company. The person on the other end of the line would be extremely proud to talk about the creative and unique ways that they can serve a niche market, move into a new territory, add a new product line, recruit top-notch sales people, be innovative with supplier leads, but with many, there also seemed to be a consistent theme in conversation. They were limited to traditional financing methods and were lost on how to finance and fund their creative solutions.
Here is what may look like a very bold statement, but I believe that a value added reseller should never have to say no to selling a solution because of credit limits or available cash. Some might read that and think I've come off of the holiday card list of my credit and collection colleagues, however, it may not be as bold as it looks if you believe that financing is a strategic weapon in your selling arsenal. Creative and flexible financing can help you outsell your current cash flow, and not having to use your working capital translates to more buying power. Financing can lead to improved liquidity for both value added resellers and end customers, allowing both to keep more cash on hand. It can also allow to businesses to preserve existing credit and enable the qualification for other financing.
When I first started with Avnet, we used the phrase to define our value as LSMFT. The acronym has always stuck in my mind as the old advertising slogan of: Lucky Strikes Means Fine Tobacco, but at Avnet, it was intended to speak to the pillars of value as a distribution partner – Logistics, Sales, Marketing, Finance and Technical Support. Financial offerings have always been a part of expanding the channel and understanding how they can fuel growth is important. Leveraging the proper financial solutions for your business is even more valuable.
Avnet provides several creative and flexible financing services that go beyond traditional methods of payment. These offerings include:
- End user billing and collection (Receivable Services)
- Third Party inventory financing – we work with companies such as Castle Pines, GE and IBM Global Financing
- CapacityNow, Flexserv and Avnet Global One
- Leasing and Rentals
- Lockboxes and Escrow
- Security, PG’s and UCC’s
- Irrevocable Standby Letters of Credit
- Credit cards or prepayment
So the key to solution success? Any combination of the above offerings while maintaining a close relationship with credit as a business partner for temporary needs or a financial strategy. Keep your solutions innovative and leverage financial services that are just as creative, so you’ll never have to turn down selling a solution because of credit limits or available cash.