Dicker Data cuts out third-party financing with in-house financial services

Dicker Data has launched an in-house financing division called Dicker Data Financial Services.

The launch is in response to the growing popularity of as-a-service IT procurement and the shift from capital expenditure (capex) to operational expenditure (opex) within the channel.

A Dicker Data spokesperson told CRN the service effectively cuts out third party financial services and “keeps it in the channel” as the first distributor in Australia to offer direct financing.

“I’m pleased to bring this unique financing solution to market for our reseller partners,” chief executive David Dicker said.

“Our success has always been driven by leveraging our in-house expertise and by providing highly differentiated solutions.”

Through DDFS, Dicker will offer by-the-month payment solutions that can be specifically tailored to suit both partner and customer needs. Like any other financial service provider, financing is subject to credit approval.

DDFS will be backed by Dicker Data’s own balance sheet, with the distributor essentially investing in each deal, whereas competitors would hand resellers over to a third party financier.

“The other bugbear that partners tend to face is at the end of each lease. That’s typically an area of contention for partners and finance companies,” the spokesperson told CRN.

“We navigate that by giving the partners complete upfront transparency on what their options are or what they want to do in the end of their lease so that there’s no surprise.”