Bright Spot in the Quarter? Lease Financing

By Jessica Davis  |  Print this article Print

Disappointing revenues, low visibility and more interest in lease financing characterized the quarter for technology distributors Ingram Micro and Avnet, reporting their earnings on Oct. 23. The reports come in the aftermath of a Wall Street meltdown that is causing a global economic crisis. It's a "different universe," says Ingram Micro's CEO.


A bright spot in the quarter came as the distributors noted an uptick in requests for lease financing quotes.

"[Our partners'] end users are requesting more lease quotes than they've ever requested before," said Paget. "Leasing is definitely available. All the major vendors have captive leasing programs, and there is certainly money available in the market for leases.

"The quoting activity gives some sense that there is still demand in the marketplace," he added.

But not all resellers and end customers may be seeing the credit flow.

"Are we lending more? Yes," said Ingram Micro CEO Spierkel, "where they look like they are solid. No, where the opportunities to make a return don't look so good."

Spierkel told financial analysts, during a call following the earnings release, that the company had not yet noticed any delays in repayments from SMB end customers, but it was keeping a watchful eye.

Jessica Davis covers the channel for eWeek and Channel Insider. Her technology journalism career began well before anyone heard of the World Wide Web and has included stints at Infoworld, Electronic News/EDN, and the Philadelphia Business Journal. Her work has also appeared on CNN and Forbes.com. She has covered hardware, software and networking, as well as the business side of technology. She has won several journalism awards, including a national ASBPE award for best staff-written column, and was named Marketing Computers hardest working tech journalist on their inaugural list of top tech journalists. Jessica can be reached at jessica.davis@ziffdavisenterprise.com

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