Lessor seeks to ease liquidity
in IT channel. Claire Hack and Fred Crawley report.
Independent UK IT finance provider
Syscap has signed a major white label financing deal with IT
distributor Computer 2000.
Syscap will be the exclusive
finance provider to Computer 2000’s reseller channel, delivering
end-user financing solutions initially for three years. The vendor
is the UK arm of Tech Data, a global distributor of technology
products. Turnover was more than £1bn (€1.22bn) in the UK in the
The Syscap programme will enable
resellers to finance their customers for more than 30,000 products,
related services and maintenance. It will be available for
purchases from £3,000 to £1m plus.
The deal marks a change in attitude
for the funder as it has typically shied away from working with
distributors. “It was just too far removed from the end-user,” CEO
Philip White said.
“In the last three years, we’ve
seen a significant lack of liquidity within the channel. Generally,
that starts at the bottom with end-users paying resellers late or
not at all, and that clearly has a negative impact on the supply
chain. The ultimate loser is the distributor as they’re at the
As a result, distributors have been
supplying extended credit terms, which have placed pressure on
Syscap’s idea was to increase
liquidity at the front of the supply chain, which would then filter
through. It undertook reseller analysis with Computer 2000, and
found that the average number of debtor days had doubled from 40 to
Syscap has also worked with
Computer 2000 manufacturers.
“We wanted to understand what their
perception was and the benefits for them from providing additional
liquidity to the channel. We have created an end-user financing
proposition that allows resellers to access customer financing
24/7,” White said.
This includes the introduction of a
web portal on Syscap’s own website, with tools specifically
designed for transactions with Computer 2000, and a dedicated
“programme manager” working within the company.
Syscap is now looking at deals with some of Computer 2000’s
vendor partners in vertical markets such schools.