It’s much more difficult to understand the value of an asset in IT than in other industries.
That’s why it’s necessary to look for more creative financing solutions to supplement traditional financing avenues.
speaks with Melanie DelValle
, director of customer finance, and John Bak
, executive director of credit development, both with Ingram Micro, about:
- How creative financing compares to traditional financing
- How credit helps drive growth
- Customer concerns around the cost of financing
Creative financing vs. traditional financing
Assets whose value can be assessed more traditionally are better suited to traditional financing.
Think of heavy machinery. A bank can assess what it means to the production of the business and what they could get for it on the secondary market.
Compare that to a 3-year software subscription and the value conversation becomes a bit more complicated.
As a company fluent in the inner workings of the IT channel, Ingram Micro can offer more creative financing solutions than you would typically see from a bank.
“Being in the channel, we not only understand the technology solutions that are being sold,” Melanie says, “but also how a managed service provider delivers those solutions and how the end customers want to consume it.”
That being said, creative financing solutions are not a substitution for traditional financing.
“Banks are still critical to supporting our partners, especially when it comes to their working capital and their growth needs,” Melanie says.
John agrees: “We’re really providing financial vehicles to supplement what the traditional lenders provide today.”
How credit drives growth
Traditional credit plays a vital role in the growth of Ingram Micro’s partners.
To support them, Ingram Micro’s philosophy is to be proactive so that they don’t have to think about credit.
“You don’t want to get caught up worrying about whether you have enough credit capacity on the credit card when you want to make a purchase,” John says.
Ingram Micro works to ensure that credit lines are expanded as aggressively as they can be.
In addition, Ingram Micro always looks to be creative with the terms of the deal whether that means providing extended terms for certain transactions or structuring deals to match how end users are going to pay.
Evolution of customer concerns
“The customer mindset is changing a lot of what we do,” Melanie says.
With the expansion of consumer financing options, customers have begun to feel more comfortable with paying a financing charge. Plus, they’ve learned that it benefits their cash flow to vendors and allows them to close deals today.
Talk to Ingram Micro’s financial solutions team.
According to Melanie, they are an invaluable resource. “You have somebody who understands the business, who can advocate for you, and who can help build a roadmap for you on where you want to go.”
Ingram Micro’s financial solutions page or email the financial solutions team
to learn more.
for the Lenovo Booster program today.
For more information, email Ron Corley
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