4 financial misconceptions that could be holding back your business

Often misunderstood for being too complex and time-consuming, the word “finance” may sound tougher than it actually is for managed service providers (MSPs) to advance their business. But it doesn’t have to be.

“A lot of the misconceptions we come across is finance is complicated. Whenever I'm speaking to resellers or our partners, they often see us [Ingram Micro] as the technology experts and don’t expect us to be finance experts,” said Stuart Hayes, senior manager of Business Development at Ingram Micro.

In this blog, we debunk common myths about MSP financing and share ways Ingram Micro Financial Solutions works with MSPs to provide personalized, flexible financing options.

Myth 1: Existing relationships prevent finance with Ingram Micro

MSPs may already have established relationships with other financial institutions, like banks or OEM financing, and think it is unnecessary to have a connection to Ingram Micro Financial Solutions.

Reality: Ingram Micro Financial Solutions offers unique advantages, like flexible financing and creativity in constructing a solution that works for that particular MSP’s needs. Ingram Micro can also connect MSPs to the right financial partner rather than being locked into a single financing source.

“We talk like bankers and act like resellers, but we understand the global distribution network,” said Hayes. “We’re here to help grow share…but we’re not here to profiteer out of the financial solutions that we deliver, hence we have really good relationships with OEM banks.”

Myth 2: Finance is complicated

Finance may sound more complex than it really is, therefore this may cause MSPs to shy away from financing. MSPs are technology experts and are more focused on the latest tech trends and how to incorporate them into their business for their customers.

Reality: Ingram Micro Financial Solutions is designed to help pave the path to “easy” for MSPs by simplifying the complexity of financing.

“Since we are not an actual bank or finance company, we have the ability to be a lot more flexible and creative in what we have to offer,” said Jeremy Covert, senior manager of Financial Solutions at Ingram Micro. “We kind of bring down all of those barriers and make it an easier process…a lot of the pain points that happen in a finance transaction, our customers don't experience because we protect them from that and take a lot of that on ourselves.”

Myth 3: Finance slows down deals

One common misconception is that financing slows down the sales cycle. MSPs and sales become concerned it’s another hurdle and may put the deal on pause.

Reality: When positioned correctly, finance can actually expedite the sales process. The most important step is to incorporate financing into the early stages of the deal to avoid any last-minute budgetary complications. This keeps deals on track and gets the MSP paid quicker than cash or net terms transactions.

Myth 4: Financing is only for large corporations

Many MSPs might think financing is only for the bigger industry players.

Reality: Despite this common misconception, financing is very relevant to smaller businesses and can be a missed opportunity for a smaller business interested in expanding its offerings. Financing is not limited to the company’s size or sector, nor is it one size fits all.

From public to private companies as well as the public sector, businesses of all backgrounds and sizes can benefit from customized solutions, regardless of credit limits. Ingram Micro collaborates closely with MSPs to create solutions such as enhancing cash flow management to provide MSPs with the advantage in an ever-changing market, technology rotation financing to maintain an updated IT infrastructure or turnkey solutions to eliminate the need for MSPs to handle complicated transactions themselves.

When partnering with Ingram Micro Financial Solutions, MSPs can remain more competitive in the market and enjoy the benefits of increased buying power and cash flow. Don’t let myths hold you back from reality—learn more about customized solutions built by our finance professionals with your business in mind.

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Jackie Connor is a writer with more than 15 years of experience contributing to news publications and marketing teams. Since joining Ingram Micro in 2022, she covers technology services, financial solutions, ESG and DEI.

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