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By | Kat Hall 18th November 2014 13:06

Syscap waves £50 million in CASH at UK tech channel

Boxes of chocolate not enough to win back its former relationships

Finance provider Syscap has set its sights on wooing back the channel by waving at least £50m in cash at partners seeking funding.

The firm began life as a channel finance provider, but has since moved into other sectors, such as legal businesses.

It currently funds around £30m-£35m to 700 partners - some 10 per cent share of the channel market.

Sean Read, head of direct sales and marketing at the firm, says it hopes to increase its market share to 15-20 per cent in the long-term.

The channel has an appetite for more funding, with business beginning to bounce back from the 2008 slump. Yet firms seeking to expand are still struggling to secure bank finance, he said.

Read added: "The £50m figure is what we would expect to finance. If the demand is more that is fine; it's not a limit, just what we would expect."

Of the 700 partners Syscap currently funds, just 20 per cent use its services regularly, while half access its services once in 12 months. The remaining half use its services occasionally, or when financially "distressed".

Reed said the firm is ideally looking to work with mid-tier partners with an appetite for growth. ®

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