01732 759725
24
FINANCE
about the deal and the customer is full
and accurate. Getting it right first time will
mean a quick and hassle-free transaction.”
How can a finance partner help
resellers to secure funds?
Jo Harris:
“It is imperative that a
finance partner makes continual efforts
to understand each reseller’s business
developments, new products and solutions,
as well as business challenges. With the
right insights and acquired knowledge, the
finance partner can then develop financing
solutions that facilitate the reseller’s
business growth while meeting the needs
of its customers.
“Simple paperwork and speed of
financing decisions can often mean the
difference between closing a sale and
losing the customer to a competitor.
Accordingly, an effective finance partner
will provide a simple, quick and effective
credit decision tool, with which resellers
can assess a customer’s eligibility for
finance. A finance partner should also
be able to demonstrate presence, a
consistent commitment to the market and
a reputation for being a reliable partner for
the resellers they work with.”
Andy Milsom:
“Specialist leasing
companies have the funds available to
support investment in IT and it’s extremely
important that resellers make their
customers aware of this leasing option.”
How do you work with the
channel? What support do you
provide?
Jo Harris:
“At SFS, we take a long-
term view to building relationships with
resellers. We have field sales support
specialists across the country who
command excellent knowledge about
business processes. We also take a
proactive approach in helping resellers
better embed finance into their customer
proposition through the provision of
training and support. Such initiatives allow
us to provide all-round service and a fast
response to resellers’ needs, whilst also
remaining fully up-to-date with evolving
market dynamics.
“Technologically-led processes will
become a key driving force in increasing
business efficiency and effectiveness. We
have therefore enhanced our services
with Siesmart, an online multi-language,
multi-currency finance application tool
for resellers that offer integrated finance.
When Knaresborough-based reseller Clarity
Office Solutions (Pennine) Ltd opted to bring
in a compliance expert, Consumer Credit
Compliance (CCC), more than 20 other
franchises in the group opted to engage the
services of the same provider.
After realising that applying for an FCA
(Finance Conduct Authority) ‘permission’ – a legal
requirement for all companies offering credit – was
a complex and time consuming process, Clarity
Office Solutions approached CCC for expert support.
CCC, based at Harrogate’s Windsor House,
handles in excess of 400 compulsory permission
application submissions for businesses nationwide.
Bernard Henry, Managing Director of Clarity
Office Solutions, said: “When we received
notification that we had to apply for our FCA
permission I initially expected the process to be easy.
“How wrong I was. After a few hours of getting
nowhere, I knew I needed to seek expert help. That’s
when I turned to the CCC team. They did everything
for me and, thanks to them, we have our permission,
which is great news for us and for our customers
too.”
He added: “My actions have now been copied
by more than 20 other offices in the group, who
have all turned to CCC to ensure they get their
permissions in time.”
After taking over regulation of the consumer
credit industry, the FCA instigated a new
permission scheme and introduced a raft of new
rules that companies operating in the consumer
credit industry have to adhere to. Now, any
company that fails to submit an application within
a pre-determined timescale is unable to offer any
form of credit to customers.
Consumer Credit Compliance Co-director Ian
Beardmore said: “Every business that offers its clients
credit must eventually have a new permission, even if
they have been offering it for many years.
“It is not a two-minute job but is a complex
and lengthy process. There are literally tens of
thousands of companies in the same boat as Clarity
Office Solutions that require an FCA permission and
don’t have the time or the expertise to complete
the task in the allotted timescale.”
Beardmore started the business 18 months ago
with IT specialist David Petty and now employs a
16-strong team to help cope with soaring demand
for its specialist services.
The latest quarterly Finance Monitor
from BRDC Continental states that more
SMEs have made a profit (79% of SMEs
interviewed in Q1 2015, up from 69% in the
equivalent quarter of 2013), more have a
‘minimal’ or ‘low’ risk rating and fewer have
injected personal funds into the business.
The report also shows that borrowing is on the
decrease, with 72% of SMEs interviewed stating
that they aim to pay down any existing debt and
then remain debt-free.
The risk-averse lending climate has improved
and the ability to secure external finance has
increased, with 76% of all applications made in
the last 18 months resulting in a facility and 98%
of those applying to renew an existing facility
being successful.
The proportion of SMEs reporting a borrowing
event in the year prior to interview is stable (18%)
and remains at lower levels than previously. Most
SMEs (79%) were ‘happy non-seekers’ of finance
for the period and this has also stabilised. BRDC
Continental categorises a quarter of SMEs as ‘debt-
averse’; one in three say they would like to be
debt-free but are prepared to borrow to help their
business grow.
Just 36% of SMEs were using external finance
in Q1 2015: 29% were using one of the ‘core’
forms of finance (loans, overdrafts and/or credit
cards), down from 40% at the start of 2012, with
16% using ‘other’ forms of finance, including
leasing and invoice finance. The gap in usage
between the two forms of finance has narrowed.
Growth is also firmly on the agenda; 43% of
SMEs in Q1 2015 said that they planned to grow
in the next 12 months.
Bringing in the compliance experts
Borrowing decreasing amongst SMEs
Continued...
...continued
