HP expands channel finance options

HP is expanding the finance options it can provide to channel partners to encourage more to use the facilities it can provide to secure business that otherwise might not get signed off.

The vendor has renewed its partnership with HPE Financial Services but has also added DLL Group into the mix and indicated that it could well work with more finance players in local markets to provide greater channel coverage.

Deborah Baker, head of worldwide leasing and financing, HP, said that it wanted to help channel partners secure recurring revenue and to be able to offer competitive payment options.

“As HP becomes more aggressive in its shift to a services-led model, financing is a capability we are prioritizing and integrating into more of our solutions,” said

“We strongly believe the more innovative our payment solutions are, the more likely we are to secure new business and maximize refresh opportunities," she added that research showed that those resellers that adopted finance usually secured bigger deals from customers.

"We plan to extend the model in 2020 to have more local coverage," she added “Statistically, when a payment solution is included in a solution, transaction size is higher, discount rates are lower and, therefore, overall margin in a transaction is higher for our channel partners. It also gives us the ability to mine the installed base and to potentially, interrupt a transaction early or at end of lease and ensure that the next transaction or the next contractual engagement is more assured with the customer."

The channel has historically had a mixed response to finance, with many in the leasing world urging them to use the option more. Baker said that one of the attractions of working with HPEFS and DLL was that they would be helping get the message out.

"One of the big reasons you bring in HPE and DLL is because they have the expertise and they will partner with the channel partner and provide education," she said.

HPE Financial Services has a relationship with HP that goes back before the two firm's split and Paul Sheeran, vp and managing director EMEA, worldwide channel leader, HPE Financial Services, said that customers were driving changes and partners needed to offer innovative financial solutions.

“Big or small, customers today want options for workplace tech: they want to be able to use vs. own, and consume as a service” he added “They also want a more sustainable approach to IT. HP is clearly leading the way in that space, and HPEFS financing and circular economy solutions are completely aligned to this ambition. With the extension of our partnership agreement with HP through 2024, we look forward to continuing to bring value to partners and customers, so they can achieve their goals - business and sustainability.”