Show me the money: How Orbus and NEXTGEN are helping their partners with simple, low-risk finance solutions
There are many considerations to be made by a business when deciding to purchase new IT solutions or upgrade existing infrastructure. Obviously the technology, the company supporting the technology and the price are key factors, however, an often overlooked factor in the sales process is understanding how the customer wants to purchase and pay for the solution.
Orbus and NEXTGEN understand the unique funding needs of the technology sector, and want to continue to empower partners to be able to deliver innovative options to their clients, in all aspects of the relationship.
Orbus is the NEXTGEN Group’s vehicle for delivering tailored IT finance and payments solutions to the ANZ channel, designed to provide a superior alternative to the limited options available from vendors or traditional lenders. It forms a key component of NEXTGEN’s strategy to add value for partners at all stages of the opportunity lifecycle, making it easier for partners to do business and generate sustainable revenue and customer loyalty.
“Without intimate knowledge and experience within the IT and technology space it is impossible to supply client focused payment solutions that position the partner as the key manager of the transaction. 99.9% of funders can fund some or part of an IT solution, Orbus has the capability to cover all scope of a client’s requirements,” Managing Director of Orbus, Mike Sheeran said.
This includes hardware, software, cloud based subscriptions and services and the required peripheral costs that surround any rollout.
“As part of the NEXTGEN value added philosophy, Orbus does not restrict its partner or client funding model to any particular vendor or NEXTGEN distributed product. This gives the partner the ability to supply a single source finance solution for its clients,” Sheeran added.
As the transition into the cloud continues to gain momentum, the method in which businesses need to acquire and adapt to new technology is also rapidly changing. Businesses are moving away from owning ICT assets to consuming them as services, so flexible and scalable funding is crucial as an offering from vendors to their customers.
“IT finance has formally been controlled by the vendors as traditional funders have high level risk criteria around this type of product and service. Therefore any funding from traditional funders has been utilising the security of the partners balance sheet to offset the risk. The pressure and restrictions this puts on the partner can be crippling from a business development aspect and restricting on how and what the partner can supply their client,” Sheeran said.
“Orbus gives the partner the ability to both fund their own subscription solution for their client or acquire the required product or services as a subscription model from NEXTGEN. The market is actively pushing for a more subscription based model. Orbus becomes the brand behind the partner brand, a behind the scenes funding provider allowing the partner to transact with their client using their own documentation. Experience has shown us that as an MSP this is an essential requirement,” he added.
What are the benefits for the partner? Firstly, there’s the prospect of an increase in sales. If clients can easily obtain funding, they’ll often sign on for more product which can also lead to an expansion of offerings within the current client base. In that same conversation, it can often eliminate the “not in budget” and “next fiscal” objections during the sales process.
This type of funding model can also increase customer loyalty or “stickiness” between partners and their clients, because they’re making the transaction and delivery of the tech easier as well as allowing customers to modify requirements within the contract framework and timeframe. It provides the ability to recognise all revenue and associated profits from the transaction, it’s an easy way of transacting and gives the capability of tailoring a payment schedule to suit client outcomes.
“Importantly, because you’re moving credit risk to Orbus, it also eliminates the need for both partners and clients to use their own credit lines and facilities and gives them a clear way to increase margins and returns over the term of the supply contract,” Sheeran said.
From a holistic approach, this model is giving partners the opportunity of achieving true vendor independence and management of their client contract base. Orbus and NEXTGEN believe this can empower them to move to the next phase of their development as true service providers.
Orbus provides a unique payment solution for the channel - 3 takeaways that will help you:
- Easy - the Orbus solution is easy and does not require complex agreements, in fact in most cases it can be done on a simple one-pager with your business details and brand.
- Low Risk - when you work with Orbus you transfer the risk to Orbus and get paid upfront. You also maintain customer ownership and control what happens at the end of the term.
- Flexible - Orbus payment options can be used for any reputable technology solution purchase and associated services, including software and cloud. Contracts are also structured to allow for changes when the customers requirements change, such as a license true up.