Dell’s financial services arm is working with GE Capital’s commercial distribution finance unit to create a new financing source for channel partners in Canada.
Now this financing is for authorized Dell solution providers who sell Dell-branded products and services. Besides Canadian solution providers, this new bit of financing will also be provided to American channel partners along with those in Germany, France, Ireland and the U.K. Both Dell and GE Capital said that this program will expand to other countries in Europe, the Middle East and Asia in 2014.
GE Capital has been providing working capital financing to Dell’s channel partners in the U.S. for 10 years and the program offers subsidized interest on extended repayment terms while allowing Dell channel partners to request additional credit capacity. Channel partners will also get availability to GE Capital’s around the clock online account management system.
Mike Marcolina, managing director of GE Capital’s commercial distribution finance unit, said whether a Dell reseller is expanding the services it offers, or just needs to provide credit to its end-users, we’re in the business of supporting the working capital needs of the channel.
Dell’s newly appointed channel chief Cheryl Cook said this new bit of financing supports what the company announced in December. Dell, she added, wants to continue to create and deliver added value to the PartnerDirect program, making it easier for channel partners to bring more solutions to customers. With GE’s expanded repayment and credit terms offered through Dell Financial Services, both partners and customers can access the capital they need to build infrastructure and invest in their businesses.
GE Capital’s commercial distribution finance unit provided more than $18 billion in channel financing to more than 1,300 channel partners around the world in 2013.
This new program is on top of Dell’s Power Up Lease program announced this past May. Dell financial services offers a lower than zero lease stream rate, which means that the lease payments will be lower than the original cost of the equipment in the Power Up Lease program.
Erik Reichman, vice president and general manager, Dell financial services told CDN in a previous interview that PartnerDirect members now have access to financing. “We have heard about partners/customers being strapped for cash, but at the same time customers still have technology needs that must be met,” he said.
Power Up is intended to help customers manage capital and get flexible payments for technology.