Home Future payments SaaS License Leasing: How Creative Financing Can Sustain Your Profits

SaaS License Leasing: How Creative Financing Can Sustain Your Profits


In the channel, mutuality has the power to transform the fortunes of partner companies.

Whether it’s a technological change, an innovative new product, or a reinvented route to marketing, the chain always seems to pull off their favorite trick of delivering marginal gain to everyone.

The last rabbit out of the hat?

Hosted telephony for rent.

For the reseller, this is an opportunity to supercharge (and lock in) long-term profits.

For the end user, this is an opportunity to better leverage cash flow AND benefit from tax optimization that improves results.

Oh, and for the seller this is an opportunity to put together a proposition so compelling it almost sells itself.

For the reseller, it works like this: buy a lifetime SaaS license from an interest-free vendor for, say, 36 months; then lease it through a bespoke white label lease to your end user customer as part of your larger managed service offering.

Once you eliminate your initial purchase cost, you make solid, predictable profits every month in the future, which can be reinvested in delivering innovative products to your customers.

Also, because the license is transferable, you can resell it elsewhere if the customer does not renew it or, worse yet, ceases operations.

For the end user customer, this is just as attractive, for a number of reasons.

For them, leasing facilitates cash flow and offers a secure and simultaneously flexible alternative to outright ownership of the license; Plus, they can write off the entire investment AND offset all monthly lease payments with their corporate tax bill.

Post-pandemic – with many organizations large and small in need of fine-tuning their communications functionality while feeling nervous about large-scale capital spending – this is a classic example of the chain going up to speed. superior.

“There has never been a better time to be in the market and leasing is a great way to maximize the opportunities that exist,” says Paul Gibbs, Sales Director at UK-based hosted telephony provider MyPhones, which invests massively in a new pioneering device, as innovative as it is attractive.

It offers lifetime leased licenses for all aspects of its feature-rich hosted telephony platform on three-year interest-free terms, with the first payment deferred for one month.

It has partnered with Tower Leasing, UK expert in B2B financing, to include the provision of easy-to-process white-label customer leases, simplifying paperwork for resellers and end customers, eliminating the need for lease documents. distinct.

And later this month, MyPhones will start offering new resellers a free ‘business start-up fund’ worth £ 20,000 in lifetime rental licenses.

“For resellers, money is king and we fully understand that,” says Gibbs. “Leasing is the perfect way to generate regular and predictable cash flow while continuing to generate operating income.

“Of course, we also recognize that a large capital investment in licensing is a barrier for many resellers, which is why we offer easy, interest-free terms.

“And the beauty of our deal with Tower Leasing is that resellers can contract with their customers through a white label deal, making Tower invisible. The reseller invoices his customer, collects the monthly rental payment, then pays Tower ”

“Regarding the licenses themselves, we allow resellers to bundle or resell if their customer chooses not to renew a lease or if they cease to exist.

“Most importantly, it means that once the initial purchase cost has been spent, the leased license generates very profitable and reliable income forever. “

For the end-user organization, the resulting tax breaks alone can often have an extremely positive impact on profitability – a factor that creates a powerful dynamic for any reseller’s pre-sales conversation.

Kerry Howells, CEO of Tower Leasing, said: “When leasing equipment, a company can get 100% tax relief on its rents compared to the annual corporate tax it pays on equipment. profits.

“Businesses can of course also claim tax breaks on the purchase of fixed assets, but the tax break applied to leases is often more advantageous; which means that at the end of the year, companies that rent give less to HMRC.

“We are delighted to partner with MyPhones to help SMEs take full advantage of these savings. Supporting UK small and medium-sized businesses is in our DNA, so we really hope resellers AND their customers see the value in our offering.

Additional and compelling non-financial reasons for renting also apply to end user organizations.

The license – and therefore the MyPhones platform itself – is “ageless” in the sense that all feature updates (which are many and varied, and which occur often) are carried out automatically and at no additional cost. .

“I like to think of the license rental as a classic channel,” says Gibbs. “The opportunity is everywhere for everyone, and when the execution is brilliant, all parties benefit from the success of the other.

“It’s a real and beautiful mutuality.”

To find out more about the free £ 20,000 rented license offer of MyPhones ‘Business Startup Fund’, visit their booth at https://technologylive.co.uk/ September 28 or go to www.myphones.com

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