As part of a larger coordinated strategy, Dell has partnered with financial institutions GE capital and Wells Fargo to enable and incentive channel partners that are selling Dell products and services, the Round Rock, Texas-based company announced Tuesday.
Dell is teaming up with Chicago-based GE Capital and San Francisco-based Wells Fargo to provide financial incentives for Dell resellers, said Cheryl Cook, vice president of channel alliances at Dell.
"We are trying to ensure that we're enhancing and exploring every avenue to extend tools and capabilities to our partners and customers that can help them to grow this business," said Cook. "Finance offerings will address short-term cash flow issues or concerns with our partners and customers. We want our resellers to take advantage of the offers and incentives directly from Dell."
In terms of financial incentives, Wells Fargo and GE Capital will provide extended payment terms for channel partners, said Darren Fedorowicz, executive director of Dell Financial Services.
"From a partner perspective, cash flow is a critical component to grow their business," said Fedorowicz. "This is a program where instead of having a net of 30-days term which is typical in the marketplace, it is extended up to 60 days, interest free. This allows them to purchase more and service more customers, while not impacting their liquidity."
Previously, the program was available only to direct partners, but now, as a part of a broader strategy, Dell will continue to focus on and leverage financing offerings to channel partners, said Cook.
"It's very aligned to our strategy of wanting to embrace the channel more aggressively to grow our business," said Cook. "I hope [partners] feel that not only are we embracing them, but we're proactively planning where we want to expand, and we're giving them the financing terms, which will allow them to expand, accelerate and grow their business without short-term cash pressures from a cash-flow perspective."
GE Capital said it believes there is a scarcity of liquidity for channel partners, which is necessary to grow a business, said Michael Marcolina, managing director for technology and finance business at GE Capital.
"One of things we're seeing in the channel community is that it's lacking is liquidity. So what GE Capital brings in this partnership is not just a longer term [of 60 days], but in liquidity," said Marcolina. "After payroll, to drive the growth of the business for cloud, security and different types of data centers, customers need to make investments in those solutions and need help with the liquidity side of it."
GE Capital will help solution providers develop their business and flourish, said Marcolina.
"This program compliments Dell's goals and objectives as a more visible player in the channel, and we will certainly do what we can," said Marcolina. "This is part of the value add that the partner looks for when they do business at the OEM level in differentiating the business while driving more growth and minimizing strains on working capital."
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