Hardware Finance

Written By Guest User

How It Works —

The firm will pay for the hardware that you deliver to your end-users. In return, you provide a portion of the revenue from customers as compensation for the hardware.

Example —

The firm purchases 1,000 units of hardware that you are now able to provide to customers as part of a subscription. As your customers pay you, the financier receives a portion of the ongoing payments.

You Might Be A Fit If —

  • You sell a solution that requires Hardware.
  • You sell to other businesses or organizations.
  • You have a recurring revenue or rent model.

Why You Would Use This —

  • Remove the friction from the sales process by not having to convince customers to make large upfront hardware purchases to access your solution.

  • You don’t want to carry the hardware on your balance sheet.

  • You want to transition to a Hardware as a Service, subscription, or rental model for the solution that you sell.

What TO WATCH OUT FOR —

  • The company immediately starts sharing revenue on the hardware.

    • Make sure you are willing to give up the agreed-upon percentage of revenue and your gross margins are high enough to support the hardware costs.

Guest User
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