IBM > Case Studies > Celerity Enhances Client Satisfaction and Business Efficiency with IBM Global Financing

Celerity Enhances Client Satisfaction and Business Efficiency with IBM Global Financing

Technology Category

Networks & Connectivity - NFC

Applicable Industries

Automotive
Finance & Insurance

Applicable Functions

Procurement
Sales & Marketing

Use Cases

Leasing Finance Automation
Smart Contracts

About The Customer

Celerity Limited is an IBM Premier Business Partner with offices throughout the UK. Their clients range from medium to large enterprises across all industries, as well as public sector organizations. As a specialist IT consulting and integration company, Celerity has been delivering dynamic infrastructure and enterprise-class solutions successfully, on time and to budget, since 2002. They combine established processes, methodologies, and products, developed in partnership with industry-leading vendors, to provide innovative solutions that transform business objectives into tangible and measurable results. Their sales team introduces financing concepts, and handles loans, and when it becomes clear a lease is the right option, they generally call in a specialist from IGF to advise on the best alternative.

The Challenge

Celerity Limited, an IBM Premier Business Partner, specializes in delivering dynamic infrastructure and enterprise-class solutions to a wide range of clients, from medium to large enterprises across all industries, as well as public sector organizations. However, the company faced challenges in developing client relationships, speeding up contract negotiations, and avoiding implementation delays. The challenge was to find a way to reduce trading risks and manage working capital while ensuring client satisfaction. Additionally, the company needed to address the issue of stretched IT budgets and sensitive cash flow situations of their clients. The challenge was to make strategic investments more affordable and accessible for their clients, without letting temporary budget issues or cash flow be the inhibitor.

The Solution

Celerity adopted IBM Global Financing as an integral part of their business model to address these challenges. This financing model helped them build client relationships, reduce trading risks, and manage working capital. The Celerity sales team used loans most often as they were easy to understand, flexible, and could finance the complete solution, including software and services. They also offered low rate loans and sometimes interest-free loans to start the negotiation. In some cases, a loan with an initial three-month deferral period was preferred to match the benefits from the investment and the loan repayments. For clients intending to refresh technology regularly, a lease was offered to expand the IT budget’s purchasing power. Celerity also used IBM Global Financing’s Rapid Online Financing tool, which provided immediate support for quotes, credit checks, and contracts, enabling them to offer a variety of different quotes.

Operational Impact

The adoption of IBM Global Financing has brought about significant operational benefits for Celerity. It has become a natural part of their sales activities, helping to speed up negotiations and agree on contract terms more quickly. This has been beneficial for both Celerity and their clients. The flexibility of the financing model has allowed Celerity to cater to the total IT financing needs of their clients, offering them the affordability they require for strategic investments. The use of the Rapid Online Financing tool has further enhanced their operational efficiency, providing immediate support for quotes, credit checks, and contracts. This has enabled Celerity to provide a variety of alternative quotes to their clients, making the negotiation process more efficient. Furthermore, the certainty of payment and faster payment process has made it easier for Celerity to manage their working capital and reduce their credit costs.

Quantitative Benefit

Financed sales remove risks of default and uncertainty in receivables.
Payment for a financed sale is received quickly and predictably within 10 working days.
For very large orders, which might stress Celerity’s lines of credit, they make use of IGF Commercial Financing, providing a payment guarantee to the distributor.