A Leading Mobile Managed Solutions and Service Provider Banks on River Capital Finance to Fund Technology Refreshes
About Our Client
Our client is a leading mobile managed solutions and service provider in the data collection, mobility, and barcode printing industry. We began working with them more than 15 years ago, financing a variety of enterprise mobile technology projects. We’ve recently strengthened our relationship with the mobile managed solutions provider by introducing a new financing model — hardware as a service (HaaS) — for acquiring mission-critical technologies and services.
In the Digital Age, enterprises need to stay up-to-date on the latest technology to maximize their operational efficiency. But, technology advances so quickly — often outpacing Moore’s Law —that enterprises often need to upgrade their enterprise technology every few years to avoid technological obsolescence. And when enterprises look to upgrade, traditionally, they’ve invested huge sums of CAPEX with a mobile managed solutions and service provider for their technology refresh. However, going through this exercise every few years can put significant strains on budgets.
This is further complicated in tough economic times when enterprises are strapped for cash, their financial future is uncertain, and they need to boost productivity with fewer resources. This left our client, a leading mobile managed solutions and service provider, with an enormous sales problem to solve: How can I provide my clients with the technology and services they need and ensure our mutual success?
River Capital Finance had just the solution to help our clients ensure their clients’ success. As an independent equipment financing company, River Capital Finance made it easier and more affordable for our client to provide their clients with the latest and greatest technologies and all their accompanied services. By acting as in-house financing, River Capital was able to help our mobile managed solutions and service provider-client finance hardware investments for their clients. This even includes funding for a new sales model: Hardware as a Service (HaaS). No other financing company on the market can offer these options to VARs and MSPs.
With River Capital Finances’ funding in their back pocket, our client is able to offer their clients all the technologies of their refresh — as well as repair and management services that coincide with them — for a simple, predictable monthly payment. The HaaS model not only helps enterprises control their expenses with simple payments, but it also relieves pressure on their finances by utilizing operating expenditures (OPEX) as a means of purchase instead of capital expenditures (CAPEX). And, in a true win-win fashion, our client has another arrow in their quiver to help complete more hardware and service sales.
After partnering with River Capital Finance, our partner immediately reaped the benefits of the partnership. First, by utilizing River Capital Finance, our client never frets about financing. Our services eliminate all the headaches associated with the finance side of a technology refresh. In this way, our client never has to communicate finance details to their clients. Instead, those details are taken care of by us, improving our client’s relationship with their clients, and enhancing their focus on deploying and managing the solution.
Partnering with River Capital Finance also allowed our client to hold on to clients they might have lost due to lack of funding by offering another way to do business — the HaaS model. When cash-on-hand is tight, HaaS is a sales tool that provides our client a clear path to mutual success: our client gets a technology and service refresh sale, and their client receives the latest and greatest technology and service for their enterprise.
Further, when the HaaS agreement ends, enterprises will need another technology refresh, typically after three years. This has provided our client with the unique opportunity of repeat business and recurring revenue. And with a positive customer service experience, our client has gained repeat customers for years to come.
Financing HaaS through River Capital Finance also gave our client influence over their client’s future technology refresh projects. As our client continues to help their clients manage their technology, they become deeply integrated into their clients’ organizations, putting them in a better position to advise and coach their clients on what to do next.
Partnering with River Capital Finance gave our client an additional sales tool in their belt that their competitors just don’t have. By integrating their business with River Capital Finance, our client enjoys the comfort and flexibility of in-house financing, increased sales, and future customer influence. Finally, in times of strained budgets and financial uncertainty, enterprises want the best technology and services for their workforce at a convenient, predictable, low price. By joining forces with River Capital Finance, our client can provide just that.