Few lifecycles move as relentlessly as technology. No sooner do businesses adopt the latest hardware platform, operating system, or cybersecurity tool than a faster, smaller, more powerful version rolls out to meet end user demand. Keeping pace can overwhelm even the savviest organizations.
Fortunately, a creative channel finance package can ensure all parties thrive:
- Channel partners*—including resellers, distributors, and system integrators—gain more certainty around cash flow and working capital.
- Manufacturers, in turn, can reduce their risks and accelerate growth.
- Customers and end users receive the expert assistance they need for even the most complicated implementations.
It’s a win-win-win equation that more manufacturers are adopting to differentiate their brands, strengthen their supply chains, and improve their customer service.
A broader approach to channel finance
Just as systems have evolved, so has channel finance, expanding far beyond its roots in hardware. Today’s packages are sophisticated, practical, and flexible. Manufacturers can deploy channel finance for everything from software applications to telecommunications equipment to data storage components. A tailored channel finance program offers advantages for resellers and vendors alike.
With financing, channel partners can:
- Inject more confidence and trust into channel relationships
- Eliminate roadblocks to customer sales and service
- Achieve growth targets
- Differentiate their brand in a crowded tech marketplace
Providing stability and growth for channel partners
Channel partners, in particular, appreciate the strength and stability that channel financing provides. By easing day-to-day cash flow and working capital pressures, these valuable intermediaries can focus on sales, service, and growth.
The right package allows resellers, distributors, and integrators to invest in the talent and infrastructure necessary for today’s demanding and complex engagements—a critical necessity now that the channel partner role extends far beyond sales.
In fact, a single engagement can include configuring a solution across dozens of manufacturers and components, with installations in multiple physical and cloud-based locations, as well as ongoing cybersecurity and maintenance agreements. This expanded role means channel partners have more vendors to work with, more administrative details to juggle, and more staff to hire and train. Adequate access to capital becomes more essential than ever.
Channel finance, as a result, enables manufacturers and channel partners to align their goals and resources, with a shared focus on end user needs for new technology and sustainable growth.
While there’s no stopping the pace of technology, a strong finance offering can help manufacturers and their supply chains stay current and competitive. Look for a provider that specializes in technology, and that demonstrates a willingness to craft a tailored package that supports each manufacturer’s specific goals.
* Channel partners is a term referring to the channel finance industry such as resellers, distributors, integrators, etc. Wells Fargo Capital Finance is not acting as a partner.