Hardware Finance
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.
