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Syscap bolsters channel support and looks for growth

A few months after it was acquired channel finance specialist Syscap is already investing in the future and increasing the support it can offer resellers

It has been just over six months since channel finance specialist Syscap started life under new owners and started to flex its muscles having gained access to more capital.

It has been a fairly momentuous year so far for Syscap with the firm celebrating its 25th anniversary in April and sealing the acquisition deal with the Wesleyan Group in February.

The steps that led to the acquisition started at the back end of 2014 with a list of potential candidates being drawn up with the favourites being those that would provide Syscap with a platform for growth and access to liquidity for the SME community.

Over the years of recession some of the growth plans that Syscap had intended to follow through on were undermined by woeful economic conditions. One of the main benefits of getting involved with a firm that had billions of pounds worth of assets was the ability to push through some of those plans and ambitions that had perhaps stalled because of economic constraints..

Philip White, managing director of Syscap, said that one of the main things that attracted the firm to the Wesleyan Group was a shared culture with staff and customer needs a high priority for both businesses.

"I spent a lot of time with the management and the people and the cultural fit is a big thing," he added "To be able to find that someone else had the same culture as our company was a very big driver for me."

White added that the Wesleyan also brought some serious financial muscle that would help its growth plans: "We were driving with the handbrake on and this allows us to take that handbrake off and make appropriate investments".

Those in the channel wondering what a post acquisition Syscap would look like have already seen plenty of evidence of those investments taking place with the firm relaunching its partner programme and investing in its technology platform to make it easier for resellers to be use "self-service" to provide finance to customers.

"We are making investments in systems, infrastructure and people. We have got access to capital that allows us to better control our own destiny and allows us to innovate," he added.

White said that it continued to look at the way it could provide support to the channel and was delivering help for those moving to a subscription-based model driven by moves to the cloud and managed services.

Although many SMEs have moved into a position over the last couple of years where they have weaned themselves off credit and avoided turning to the banks, getting into a position of being "happy non-borrowers" there are still many needing finance for growth.

White believes that the channel still needs to understand finance more to take advantage of some of the products available. Customers and resellers are looking for ways of making their expenditure more predictable and get a clear picture of how IT investments will hit budgets and finance can deliver that.

"The challengis is education and encouraging people to be prepared to invest time and to accept the need to reegineer their business model," he added that going it alone was also a potential problem because few in the channel could be specialist enough to get on top of the regulations and compliance that came with providing finance.

"We can support collecting payments by direct debits, making sure they are keeping to the FSA regulations as that it what we do," he said.

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