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Coronavirus: Dell offers channel access to $9bn in financing

Vendor continues to make moves to support partners that are trying to keep business as normal as possible during the Covid-19 crisis

Vendors with finance operations are increasingly calling out to partners to encourage customers to take advantage of the funds that could be on offer.

The channel has not always embraced finance as an option, but given the current circumstances, it is being seen as one way to keep cashflow moving and getting users to sign off on projects.

Dell has already made changes to its partner programmes, made it easier to get rebates and the president of its financial services business, Bill Wavro, has penned a blog outlining what the vendor can provide.

He wrote: “Today, your business needs a trusted adviser as you re-evaluate IT priorities to drive business continuity in ‘the new normal’. Dell Technologies has rolled out the Payment Flexibility Program, which includes 0% interest rates and up to a 180-day payment deferral.

“We’re also making $9bn in financing available this year to help fund your critical technology needs. This is our commitment to help you run your business, take care of your people and access essential technology.”

Wavro summarised some of the main moves Dell had made to make life easier during the coronavirus, including 0% interest rates on all server, storage and networking solutions the vendor has to offer.

Dell Finance is also allowing a deferment of the first payment of up to 180 days on datacentre infrastructure and services.

To cover the demands of those that have had to shift to a home working model, the vendor is providing short-term options of six to 12 months on laptops and desktops.

Dell Finance is also partnering with VMware to make sure there are flexible payment solutions covering that side of the business as well.

“Our commitment extends to our channel and global alliances partners with Dell Financial Services (DFS) accessible to thousands of partners,” said Wavro. “Partners whose customers use DFS can improve their cashflow and liquidity by being paid within days. Additionally, qualifying partners can get a payment extension of 45 to 90 days with the Dell Technologies Working Capital Solutions Program.”

Dell Financial Services has some EMEA-specific offers, including: lowering promotional interest rates by 25bps,  adding three-months payment deferral on top of the existing promotions, and specifically for VDI and selected storage, six-months payment deferral.

It said it was giving more flexible eligibility criteria to allow more customers to leverage these promotions – subject to credit approval – and to help customers, short-term (six or 12 month) payment solutions will be available for a short time.

Last week, Joyce Mullen, president of global channel, embedded and edge solutions at Dell Technologies, also took to the blogosphere to announce moves to ease the pressure on cashflow by being particularly flexible with marketing and business development funds.

Between 13 April and 20 June, partners can apply for a one-time up-front cash payout of up to 50% of current partner MDF/BDF balances for use in future marketing activities. Partners can apply for this at any time between those dates. The deadline for the expiration of any unspent funds that was meant to run out between March and July has been pushed back to 24 July.

For distributors, Dell has removed the 1H FY21 client solutions growth targets and increased base rates to improve predictability of earnings.

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