As technology rapidly evolves, businesses in the Asia-Pacific and Japan (APJ) region are seizing new opportunities and tackling challenges, particularly in financing and managing their fast-paced growth. To help partners meet that demand, Tech Data Capital, a strategic initiative by Tech Data, a TD SYNNEX company, has expanded into Singapore and Australia, and is already supporting deals in India. Following earlier launches in North America and Europe, this expansion further bolsters efforts to leverage Tech Data’s strength, agility, and expertise in delivering solutions that cater to the needs of the channel ecosystem.

The Tech Data Capital flexible financing model is designed to mitigate risk and spread the cost of investments over time, allowing partners to remain agile and competitive in a fast-evolving technology landscape.

With these solutions, partners are better equipped to scale operations, embrace new technologies, and navigate economic uncertainties. Flexible financing is no longer just an option—it’s a strategic tool that enables companies to manage growth effectively.

Increasing Demand for Flexible Financing Solutions

In 2023, the TD SYNNEX Direction of Technology Report showed that 59% of partners in the APJ region identified credit and financial scalability as a key challenge, emphasizing the need for flexible financing models. The latest Direction of Technology Report produced in 2024, further shows that partners are increasingly turning to flexible payment terms and credit options to support business growth in uncertain economic conditions.

Flexible financing has evolved into a key strategic resource for partners, as financing partners are seen not only as providers of capital but also as trusted advisors, offering expertise that helps partners make informed financial decisions in line with their growth strategies.

Globally 44% of partners offered credit and financing solutions in 2023, with that number growing to 50% in 2024, demonstrating how these solutions are becoming integral in driving business growth on a global scale.

What’s particularly striking when comparing the shift from 2023 to 2024 is how financing has moved beyond just supporting technology upgrades. Today, it plays a vital role in ensuring that partners can maintain liquidity and expand their offerings across the board.

What’s Driving the Shift Toward Flexible Consumption Models?

The 2023 Direction of Technology report revealed that 53% of partners in the APJ region and 59% of European partners offered flexible consumption models, both well above the global average of 33%. In just one year, this global number surged to 54%, according to the most recent Direction of Technology Report, reflecting a significant global trend in adopting flexible IT consumption models.

This shift speaks to the growing demand for flexible models that allow partners to balance their budgets while investing in cloud services, data centers, and digital transformation initiatives. As partners reassess their offerings in light of this trend, financing solutions that support innovation and growth without straining financial resources are becoming increasingly important.

Adapting to Market Influences with Flexible Financing

In response to government investments in digital infrastructure across APJ, flexible financing has enabled partners to participate in large-scale projects without compromising their financial stability. Longer project timelines and up-front investments often create cash flow challenges that traditional financing methods might not fully address. However, flexible payment models have helped bridge the gap between project initiation and milestone payments, ensuring business continuity while large contracts are fulfilled.

For instance, in a recent digital infrastructure project, a partner collaborated with our in-house financing experts to develop a custom payment structure aligned with project milestones. This approach not only streamlined the procurement process but also enabled the partner to scale operations without overburdening their cash flow.

The Growing Importance of Flexible Financing in APJ

As Tech Data Capital prepares to support deals in India, the importance of flexible financing will continue to play a critical role for partners looking to invest in emerging technologies like cloud services and cybersecurity.

A comparison between last years and this year’s reports highlights the growing role of financial flexibility in supporting technology adoption. Globally, 6% of partners listed credit and leasing options as top offerings in 2023, but by 2024, that number increased to 13%. This trend underscores the critical role that financial flexibility has become in managing high-growth technologies like AI, cloud, and cybersecurity.

As partners face the rapid pace of digital transformation traditional financing methods are no longer sufficient. This has led to increased demand for adaptable financing options.

For example, our in-house Tech Data Capital dedicated financing experts recently helped a partner close a significant AI deal, working through multiple iterations to create a custom payment structure that aligned with their project goals. This streamlined procurement model, featuring single source contracting and invoicing, was key in meeting the partner’s strategic objectives.

We’ve continued to refine our financing offerings based on valuable partner feedback, simplifying processes, continuing to invest in financing specialists with expertise, in order to offer more credit options, and providing greater flexibility in payment structures. This has enabled our partners to access the resources they need to grow their businesses without overwhelming their financial resources.

Flexible Financing as a Key to Navigating Growth and Uncertainty

As Tech Data Capital continues to expand into India, we remain committed to empowering more partners across APJ to grow their businesses without overwhelming their resources. Flexible financing is essential for helping partners navigate growth and uncertainty, whether they’re adopting new technologies or scaling their operations.

Whether in APJ or globally, the comparison between last years and the most recent Direction of Technology reports illustrates the growing reliance on credit and leasing options as partners recognize the strategic importance of financial flexibility in driving growth, scalability, and innovation.

To learn more about how Tech Data Capital or TD SYNNEX Capital’s flexible financing solutions can empower your business, reach out today and discover the right options for your growth.

**Tech Data Capital launched in Singapore on 6 May 2024 and in Australia on 16 May 2024. We are currently supporting deals in India, with further investments planned across the APJ region based on early successes.