IBM’s Rapid Online Financing fits the bill at Apex

Like many IT solution providers, Apex Computers International Limited, one of the most highly accredited IBM Premier Business Partners in the UK, is expected to provide a first-class financing package to accompany its outstanding technology services and solutions.

Serving clients ranging from manufacturing to retail, Apex had been seeking a way to meet clients’ financing needs in a fast accessible way that would put them in the driving seat without taking on the risk.

Apex had been using two major commercial finance specialists to secure financing for its clients but the process in both cases had proved to be time consuming, laborious and extremely frustrating.

A simple transaction would involve an initial phone call to discuss the opportunity, followed by a detailed mailing, a lengthy wait for a response, followed by a series of further questions with no guarantee of a firm price.

Streamlined financing solution
Eager to try something new which might solve its financing challenges and help to increase sales, Apex entered into a pilot scheme-Rapid Online Financing (ROF)-with IBM Global Financing (IGF). ROF is a web-based facility which enables IBM Business Partners to quickly and easily generate on-line quotes for end-user customer financing provided by IGF.

ROF proved to be an easy-to-use, streamlined financing solution enabling Apex to complete its customer-financing transactions instantly, online, and around the clock.

Apex’s Services Business Manager, Philip Trumble explains: "From day one, IGF’s ROF tool literally revolutionised the way we manage our clients’ financing solutions.

"It’s a simple tool, very easy to use, and almost impossible to make mistakes with. It gives Apex the ability to produce a quote quickly, which is such a refreshing change from other financiers who insist on being provided with more and more information-and still don’t offer a firm price!

"The fact that we are an IBM Business Partner, so a good percentage of our products and services are IBM solutions, means that we are dealing with a team who understand the products, the services, and the pricing structure, which naturally results in a far quicker turnaround.

"In fact, I can typically give a quote to a customer at 9 am, a contract at 10 am and have it back at 11 am-a completed deal in just two hours, where previously it could have taken days!"

Using ROF, Apex currently issues 20-25 financing proposals a week using a dedicated team of three for all its sales and services, not only of IBM equipment but also Cisco, Microsoft and other suppliers. This compares with one or two proposals per week before.

ROF for all
Created for the mid-market and generally designed for financing transactions from £1,000-£200,000, ROF has enabled Apex to price, print and present an illustration to its customers within minutes. This ease of use has led them to automatically produce finance options for all their customers, even if they have not been requested.

Philip says: "We’ve actually won business by adding IGF financing to a deal that probably wasn’t even discussed at the sales meeting. And, whereas we only used to look at financing for the larger end of the business, we now offer it for everything over £1,000.

"The fact that we can just raise a contract, attach it to a sales quote and let the customer decide for themselves is extremely beneficial to our business. We provide the customer with a quote: the terms and conditions are clear, they can see the end-of-lease options, they don’t need to ask any questions, and can simply sign on the dotted line."

Cash-flow positive
Following delivery of the contracted equipment to the customer, Apex simply invoices IGF for the complete transaction and awaits payment, in full, within 10 days. This is compared to an average of 45 days for Apex to receive payment direct from its customers.

IGF takes on the risk, and collects from the customer through periodic payments over the life of the lease.

Duncan Bulley, Apex’s Managing Director says: "Financing based on IGF’s ROF tool can be extremely cash-flow positive. If we issue the contract with all the paperwork signed on a Friday, we could see that money in our account the following Friday."

Apex’s customers also enjoy the benefit of IGF’s extremely competitive deals with regular 0% finance offers, no interest charge, no set-up fee, and regular short-term promotions.

Philip says: "Although many of our customers are not looking for financing, when they see IGF’s competitive rates, more often than not they change their minds when they see what exceptional terms are on offer."

Transformation
Since using ROF, Apex has not considered using alternative financing packages.

It currently finances more than a third of its annual business; and, in the five years since adopting IGF’s ROF tool, it has seen dramatic increases in the volume of its business which is financed.

In the first year, Apex generated $40,000 in financed revenue and this has increased dramatically year-on-year to $3.9 million in 2006, and a record $6.4 million in 2007.

Due to the phenomenal success of ROF, Apex has increased its headcount within its dedicated ROF team to push the IGF business still further.

Philip concludes: "The ROF solution has transformed the way financing works within our company.

"I have even started going out on site to visit customers with the account manager to discuss how a finance deal would best work for them.

"I would highly recommend it to anyone: it saves time, is easy to use and also makes great business sense."