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Tech Data to launch financing arm in APAC by 2022

Tech Data to launch financing arm in APAC by 2022

Payment solutions are available for any product in the Tech Data portfolio.

Credit: Tech Data

Tech Data is set to launch Tech Data Capital, a captive finance company that offers leasing and financing for businesses for its technology solutions, in the Asia Pacific region next year.

Named Tech Data Capital, the move sees Tech Data follow in the footsteps of other distributors in offering leasing and financial assistance for any product in the Tech Data portfolio from now in the US, with plans to expand to Europe later this year and APAC in 2022.

According to Tech Data, payment solutions can be integrated into a sale and are also funded for the full term upfront, which the distributor claims remove credit risk for channel partners. 

Tech Data Capital offers a “simplified approach to leasing and financing for businesses” and comes during the quickened pace of digital transformation projects occurring amid the ongoing COVID-19 pandemic, the company said. 

“As technology continues to transform at a record pace, Tech Data Capital provides strategic, flexible finance solutions to enable our partners to close more business and add additional value for their end-users,” said Wayne Peters, vice president of financial solutions at Tech Data.  

“Our channel expertise, emphasis on the customer experience and the backing of one of the largest IT distributors in the world makes Tech Data Capital an easy choice for businesses in need of financing options for technology procurement.” 

In the US, an example of a vendor already utilising Tech Data Capital’s services is Schneider Electric, which offers its subscription-based power supply solution UPS as a Service.  

According to Tech Data, that solution provides customers with a APC Smart-UPS, Schneider Electric Monitoring and Dispatch service and a network management card in a bundle.

Under this, monthly payments are made to Tech Data Capital during the length of the maintenance term, which the distributor claimed results in an increase in credit capacity and a predictable refresh cycle. 

The launch of Tech Data Capital comes months after it entered into a definitive agreement to merge with Synnex Corporation in a US$7.2 billion deal, creating a distribution powerhouse in March.

In Australia, Nextgen has offered its finance arm, Orbus Capital, to channel partners since 2017, which enables them to provide an IT-as-a-servicee subscription model to their customers. Orbus, which is an independent company under the NEXGEN Group, provides 100 per cent financing on traditional hardware, software, and cloud, software-as-a-service (SaaS) and hosted services.

Two years later, Dicker Data launched a financial services division also to help address the services market shift from IT procurement to as-a-service models. Under the banner of Dicker Data Financial Services (DDFS), it offers by-the-month payment solutions that can be tailored to suit partners and their customers' requirements. 

Article updated at 9:47am on 27 May to reflect that Tech Data Capital is available now in the US, while plans to expand its availability in the APAC region are currently scheduled for 2022.


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