Cisco Capital is adding another weapon to its armoury with the launch of a 2% rebate scheme for deals valued at £50,000 to £500,000 that comprise over 50% Cisco kit.
The Partner Plus pilot scheme will run until the end of September and comes in addition to an already-running 0% financing programme and a six-month payment deferral scheme. It will offer partners 2% rebates to use as they please, adding them to their Cisco margin or offering sales staff extra incentives, for example.
Cisco Capital European channel head, Stuart Hall, said the programme was designed to focus on two key areas of concern to partners; slower, slimmer customer order books and their own margin levels.
Hall said that the programme was open to all Cisco partners, and expected even higher tier resellers would get involved.
“Two years ago I’d have told you it was mainly for smaller, mid-market customers, but we are now expecting it to be taken up from SMB Select right through to Gold as we’ve found enterprise customers are suffering the same pressures as SMEs,” he said.
According to Cisco, research conducted by the Yankee Group suggests that the addition of a financing package can increase deal size by 34%, something Hall believes holds true even in the recession.
Hall added that in-house financing firms, such as Cisco Capital and Avaya Financial Services, currently have an edge over traditional financial institutions because they are tied to companies and had not fallen victim to the liquidity issues affecting the banking market.
“We have not changed our credit parameters in two years and we do not intend to,” he said.