Credit Options for Channel Partners and Solution Providers

  • By

    Jessica Davis

    | Posted 2008-09-26

CHANNEL INSIDER: Use Financing to Boost Sales—Credit Options for Solution Providers


Technology leasing is much like leasing a car. Customers pay a monthly fee for a fixed term of 24 to 36 months or longer. In return, they get the use of equipment. At the end of the term, customers have the option to buy the equipment for a reduced price, or they can turn around and lease a new piece of equipment instead. The technology provider can resell the asset when it is returned. The retained value of the asset allows the technology provider to offer a lower monthly price than would be possible if the customer bought the technology outright. Often the solution provider gets a small cut—about 1 percent.

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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