Avnet to Offer VARs New Financing Option
The lack of financing is impacting channel partners just as badly as it is hurting small and midsized business across the U.S. Now distributor Avnet Technology Solurions has struck a deal with EMC Global Financial Services to make it easier for VARs to expand their businesses with minimal risk.
Basically, EMC is stepping up to make it easier for Avnet's channel partners to offer financing and leasing to customers that purchase EMC products or technology. The new leasing program will lower upfront costs to VARs and make future technology enhancements more convenient for their customers. The aim, EMC officials say, is to help Avnet's VARs be able to grow their business during slow economic times.
It's likely we'll see a lot more of these types of arrangements between distributors and vendors going forward. Many of these large IT vendors are highly dependent upon the VAR channel to sell and service their products. With businesses starting to spend less, the last thing vendors need is to have demand shrink because technology purchases can't be financed. And working with distributors on behalf of VARs is certainly a more attractive and less expensive alternative for vendors that increasing their direct sales efforts. Right now, capital is shrinking, so it is very much in the vendors' own interest to grease the skids a bit with new financing and leasing options.