Going For The Gold

AN UNDERUTILIZED ASSET
These days, there are more lenders to know than ever before. Taking a page from the success of automakers and direct marketers such as Dell, distributors and vendors are actively promoting leasing as an alternative to cash purchasing. For example, D&H Distributing Co.’s Flexible Credit program automatically grants most partners $25,000 lines of credit. “They don’t pay any interest for the first 45 days,” says Joe Chaudoin, director of credit and financial services at D&H, based in Harrisburg, Pa. “When they pay, we give them 1 percent cash back—even if they take up to four months to pay. It comes right off their bill.”

Similarly, last November IBM Global Financing unveiled its IBM Flexible Credit Program, which offers revolving lines of credit to smaller VARs and solution providers. The program provides credit lines of up to $500,000 and no-interest periods of up to 60 days.

Financial services companies are getting in on the IT leasing act too. For instance, Churchill Technology Finance, which is majority owned by global finance giant Credit Suisse Group, has partnered with reseller association NASBA to provide leasing solutions to NASBA members. “We have a 20-minute turnaround and instant documentation,” says Berg. “By the time a sales rep is done with a presentation, the lease is ready.” Even so, Churchill has set up leasing programs for just 18 members since teaming up with NASBA about a year ago. “I was hoping to be at 50, but it’s a much slower learning curve,” Berg says.

Churchill isn’t alone: Many lenders say that channel partners underutilize leasing, a situation they hope to change through more education. “One of our major pushes this year is to promote our leasing options to our resellers,” says Greg Hansen, senior financial services manager at distributor Tech Data Corp., in Clearwater, Fla.