Vendors, they are always looking for the next opportunity to grow revenue sales and invest in their channel, right? So, when resellers have an incredibly important responsibility within this growth strategy, how can vendors support and add value to their channel partners? Quite simply, resellers need working capital to grow, vendors can source a channel finance partner program to give them access to the money needed, to encourage expansion.
When resellers are constrained by the lack of access to working capital, this will prevent growth. If they don’t have the money to buy the product or services they need, they’ll be standing still and so will you.
Channel finance is an opportunity for vendors to deepen relationships with resellers and become the vendor of choice. Become more meaningful and create an impact, by supporting the resellers with a solution to their working capital issue with sponsoring a partner program with the channel finance partner.
When you provide an attractive channel finance solution and give partners access to cash, the resellers can bid for larger investments, take on bigger orders from vendors, execute on market demands and pivot against supply chain challenges. This will place you in a favorable light as a supporter of their business growth, making it hard for them to turn to other competitors who won’t offer the same structure.
What should channel vendors look for when choosing a finance partner:
- Knowledge of the channel – when a bank has specific understanding of the channel and expertise with the types of scenarios vendors and resellers face, they can be increasingly flexible with supply chain challenges and accommodate market changes, to best serve their customers.
- Willingness to alleviate stress and mitigate risk – vendors can only take on so much risk with resellers to help support partners get access to the capital required. A finance partner should remove credit and payment terms as barriers, provide partners with extended terms and larger credit facilities, while still managing the cash flow to the vendor.
- Ability to scale – a finance partner should buy-in to the vendor growth model and have clear understanding of where they want to go. They should be able to provide an extensive toolkit to support fast paced growth and scale the financing accordingly.
In this episode of Channel Edge podcast, Steven Kellam is joined by Kiley S. Kunkler, Vendor Origination Lead, at Wells Fargo where they discuss how the right bank can make a big difference in helping vendors grow channel sales and deeper partner relationships.
To discover how 360insights can support and implement your channel partner program, simply get in touch for a demonstration.