Lease Telecom has taken on 30 partners since launching in September last year, with plans to expand to 100 partners by 2016.
The company, which is based in Hove in Sussex, arranges finance for mobile, fixed line and IT dealers who want to lease smartphones, tablets, laptops, MDM software, fixed line equipment and accessories on behalf of their clients.
Lease Telecom works with a number of banks, which finance the deals, adding interest and taking on liability for payment, which allows partners to be paid upfront.
The firm is the sister company of Lease Mobile, which leases smartphones and tablets directly to business customers. Lease Telecom co-founder Simon Fabb (pictured) told Mobile that increasing enquiries from mobile dealers to Lease Mobile had revealed a gap in the market for a leasing solution aimed at the dealer market, resulting in the launch of Lease Telecom last September.
‘We found we were getting a lot of questions from partners about leasing – asking how they could go about it – which made us realise there was a real need out there for this service,’ he said.
‘A lot of dealer interest has been driven by the revenue share model. Some dealers want to find a new way of funding hardware in the absence of upfront commissions. Others want a way of meeting the rising demand from their clients for the latest devices,’ said Fabb.
Fabb said Lease Telecom has little competition in the telecoms market. He explained: ‘Lease Telecom is unique. There’s a couple of brokers who have also entered the market but they are general brokers, whereas we are very much telecoms focused.’
Growth has been strong since Lease Telecom was launched in September, with mobile leasing accounting for more than £3m in credit-approved business for the company in Q4 2014. Deals vary in size with most involving high-value, high-end devices, and iPhones making up the majority of smartphone leases.
Lease Telecom’s services include a partner portal that can generate instant own-branded quotes with deals credit checked and underwritten within 24 hours. The portal also provides training and incentive schemes for partners’ sales teams.
Fabb said: ‘Leasing opens up new business opportunities for our partners. Instead of being limited to low end devices, their clients can get the smartphones and tablets they want and partners can also offer clients additional hardware such as laptops and software.’
Partners are also becoming more creative in the way they offer leasing, Fabb said, with some using their network subsidies to offer interest-free repayment plans for their clients.
He added: ‘Our partners love leasing because it allows them to get the cash flow benefits straight away, and shifts liability for expensive handsets to the lender. It also offers them a solution for high-value transactions, and with hardware margins falling, it means someone else takes that on.’