Telecoms financing company Lease Telecom says mobile accounted for over £3m in credit approved business in Q4 2014.
Founders say this spike is indicative of the mobile market, with gradual moves to revenue share commission models and growing demand for smart devices being the two main drivers.
With less upfront commission offered by the networks, Partners are considering alternative ways of funding hardware sales.
“Leasing offers a less risky alternative to selling expensive handsets and helps Partners to break even much sooner in the term”, says Simon Fabb (pictured), Founding Partner of Lease Telecom.
Lease Telecom is one of few financiers actively supporting the mobile channel. “Until recently, there hasn’t been a smartphone leasing product. We are delighted to offer this now viable alternative to mobile Partners”.
Lease Telecom’s range of Partner branded tools, sales training and speed of underwriting have all contributed to the acceleration of credit applications for mobile business.
“We’re fully accepting of the speed at which deals need to be done. Our solution can be quickly deployed and has no impact on the way Partners currently do business”, says Simon.
Lease Telecom expects its mobile business to continue to grow, particularly as handset margins are squeezed.
“Partners aren’t profiting as much as they use to on hardware, so it is even less attractive to self-fund.”