Philip White

8 August 2008

The lack of consumer confidence in banking and borrowing is bound to have a knock-on effect in the business community, particularly among SMBs, who can feel very vulnerable during times of general economic unease, writes Philip White, CEO at Syscap.

So how can resellers to SMBs maintain confidence and help customers overcome concerns about IT investment when fears over borrowing are high?

The important thing is to address SMBs’ economic priorities for IT investment: maintaining cashflow, demonstrable ROI, and paying over time in affordable amounts. Increasingly, these demands are shaping the way many in the ICT industry win and retain business, driving resellers towards more flexible pricing models.

Utility, ASP, or pay-as-you-go pricing can leave resellers with their own problems in terms of cashflow, but ICT finance and leasing offer a straightforward way to develop pricing structures that meet demand for pay-over-time or pay-per-use models without creating financial shortfall.

Finance is not simply about offering SMB customers the ability to pay over time. This sector is constantly seeking ways to protect cashflow and create greater financial stability into the longer term, and by offering finance as an integral part of the sales process, resellers can help customers develop IT investment strategies that address these needs immediately.

By offering SMBs more financially beneficial lease agreements, resellers will be able to create their own longer-term stability by developing the kind of business relationships that have the strength to last.

Finally, it is important to realise that just as SMBs need to maintain confidence in IT investment, the reseller community needs to maintain its confidence in SMBs. Small and mid-sized firms represent 99 per cent of all UK businesses, meaning that even in a downturn, there will still be a thriving business for resellers with the right skills to meet the needs of this increasingly important group.