Westcon SA has introduced an innovative financing model for its resellers to further enhance the business’ offering to the market. Westcon Finance is a financial solution tailored to suit the end user’s needs in terms of total cost of ownership.
“Our objective with Westcon Finance is to enable our resellers to sell equipment to their customers on a lease basis instead of the usual capex offering, without any administration burden or risk to themselves,” says Peter Cowen, financial director of Westcon SA. “The product is a joint venture between Westcon SA and PRD Finance, who is a registered credit provider under the National Credit Regulator.”
Under Westcon Finance there will be two agreement types available: Operating Rental and Financial Lease. Should a reseller’s customer express an interest in either of these options, Westcon Finance will collect all their information and get the deal approved. This will result in a quick turnaround time on financing approval. Once the finance agreement is signed and all approval conditions have been met, resellers will receive payment within 48 hours.
“We have made the product extremely reseller-friendly with quick quoting tools and administration and sales support, and we believe this value-added product will provide resellers with an important marketing edge by adding the affordable purchase option of an operating lease to their sales pitch,” says Cowen.
In addition to affordability, clear benefits to the reseller include reducing their debtor collection days and the value-added services resellers can now offer their customers financing options, upgrade options and insurance. “Of course one of the biggest benefits is the transfer of risk away from the reseller,” he adds.
The benefits to the end users are very evident. “We offer on and off balance sheet options, tailor made payment structures and upgrade options or greatly reduced payments at the end of the initial lease period,” says Cowen. “Effectively it will allow customers to stay abreast of technology through a comprehensive finance solution, at no risk to the reseller.”
The implementation of the National Credit Act on 1 June, does not impact on operating rental agreements, but does however on instalment sale and leases. “Our partnership with PRD Finance ensures that we are compliant with the regulations as stipulated by the National Credit Regulator,” he adds.