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Arrow Electronics, Inc.
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Services

Financing resources

Tips to help you make the right financing decisions.

Arrow’s top 10 financing tips

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TIP ONE

Find a distributor with a wide selection of creative financing solutions

The most successful IT providers develop a plan with their distributor that allows for a seamless process based on customer purchasing habits, credit strength and their own financial growth. When a distributor has a wide range of creative solutions, the IT provider has more ways to solidify the right process to improve their financial strength.

The best distributors also help their IT providers manage their financing so they can focus on being a selling machine. At Arrow, we provide customized support by integrating our leasing services representatives into the sales organization. We can manage your portfolio data and provide reports showing where your customers’ lease deals end, so you can generate more leads. And once a lead is generated, we’ll manage the quoting and contracts for you, saving you hours of effort. We can even offer training and education sessions to maximize cash flow.

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TIP TWO

Manage cash flow to maximize your funds

Manage your needs during the slow periods so you can grow when the market turns. Financing purchases accelerates accounts receivable payments — even small attach-rate increases free up significant cash flow to pay bills and make investments in your business. A managed cash flow ensures your business is ready to grow.

TIP THREE

Provide managed-expense options for your customers

Predictable expenses that companies can forecast are popular right now, as the trend moves towards operating expenses over capital expenses. For example, operating leases provide a pay-as-you-go plan that can be managed as environments, technology and financial positions adjust to market conditions.

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TIP FOUR

Help customers bridge the gap

By integrating financial options like operating leases into their proposals, IT providers can accelerate sales. This allows you to help customers by making payments nominal or even deferring them until financial incentives can be realized — while still providing for the option of ownership at the end of the contract term.

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TIP FIVE

Match the solution with the situation

Every financial situation is unique. That’s why we provide unique solutions in terms of cost of capital, ROI, account methods utilized and more. It’s all about helping you find the solution to best help your business grow.

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TIP SIX

Build in an ROI or total-cost-of-ownership model

By engaging financing in the early proposal stages, IT providers can present metrics and costs alongside the profitability potential.

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TIP SEVEN

Keep the communication flowing

Communication is critical. We take time to understand the challenges you're trying to overcome and the goals you want to achieve. Fueled by this information, we continually work and adapt to find the right solutions to grow your business.

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TIP EIGHT

Consider leases first

Make the most of your IT investment. Leases offer quick access to funds without placing covenant requirements on the IT provider. Plus, IT providers don’t typically incur costs related to leases, while loans charge interest.

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TIP NINE

Be a smart shopper

Look for programs that match financing to the solution, and work with the financing company to negotiate terms that meet your needs. Captive financing programs generally offer the best rates and participate in brand buy-downs. Private-label programs work when captive programs aren’t available or don’t work for a specific deal. Let your distributor help with these negotiations.

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TIP TEN

Increase your deal margins with better financing

Get a competitive edge and ensure deal profitability with the right financing structure. Deliver true financing solutions while building trust with your customers by offering financing with no hidden costs or fine-print. And remember, the most successful IT providers integrate financing into their process.