Sydney-based distributor, DNA Connect, has launched a financing solution for its channel partners in cooperation with BHO Finance.
DNA offers financing options for hardware, software or cloud from $5,000. A one off agreement is signed between DNA and its reseller partners allowing the resellers to provide the customer with a monthly payment option.
Both DNA and the partner get paid straight away and the customer makes payments as agreed.
According to Munsoor, customers want to pay monthly and vendors are still charging annually in advance for cloud subscriptions.
Another key point is that customers can purchase more products and services under an existing agreement.
TOTALPAY includes easy-to-execute agreements for financing of cloud subscription and professional services, and maintenance of the transaction chain through the channel.
The financing service was made available three months ago and the distributor has already helped finance approximately $6 million.
“Customers want to implement consumption-based digital transformational technologies and they want a flexible payment model,” DNA Connect director, Munsoor Khan, said.
“We have spent nine months developing TOTALPAY to meet these needs while ensuring our partners are fully involved in every step of the transaction.”
‘We are offering competitive rates to finance multi-year cloud deals and the associated services that Partners are delivering through the transformation journey. We’ve created a really simple approval and agreement process, and the Partner still receives the customer order so they can fully recognize the revenue.’ Khan added.
DNA is preparing a self-service portal to speed up quoting for partners. The distributor is also running partner briefings to show how financing can be used to increase sales, manage budget constraints and strengthen the relationship with the customer.