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A Gap in IT Financing

When it comes time to dole out advice on surviving the recession, one of the first bits of wisdom to spring to mind is to take advantage of IT vendor financing. According to a new study from market researchers at Framingham, Mass.-based IDC, the gap between what's needed and what exists remains pretty wide, especially for smaller solution providers.

Nearly half of the 43 channel companies responding to a February IDC survey reported having more trouble getting customers financed through IT leasing and financing sales programs. Among smaller partners, the percentage rose to 73 percent, according to IDC's survey.

Similarly troubling were IDC's numbers when asking whether channel providers had access to enough capital to continue "business as usual." Eleven percent of channel partners reported that they didn't have access to that kind of capital. For resellers with annual revenues of less than $5 million, that number increased to 20 percent. It's a small sample, but that's a pretty large percentage of partner companies on the brink of financial disaster.

Let me know how you're feeling the pinch at [email protected]ag.com.

Posted by Scott Bekker on March 26, 2009 at 11:58 AM


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