HP Dangles Interest-Free Financing Carrot For SMBs

The offer, provided through HP's Financial Services subsidiary, has two interest-free financing paths -- a 12-month purchasing plan or a 36-month leasing option -- and becomes part of the vendor's HP Total Care portfolio of products and services for SMBs.

"Several months ago, we looked into our crystal ball and said the economy is not going to recover for a while. And history proves that businesses that invest in their business during a recession -- and that largely means investing in technology these days -- break through to the other side in a good position," said Brian Burch, director of SMB marketing in HP's Personal Solutions Group.

The offer, dubbed HP Total Financing, kicked off Thursday and runs through April 30 in the United States and Canada. Both paths in the promotion let U.S. customers finance between $1,500 and $150,000 worth of products from the computing giant, while Canadians can tap HP Total Financing for between CDN$5,000 and CDN$150,000.

On the 12-month purchase plan, customers can complete their transactions with HP for $1 at the end of the interest-free payment period or else settle up at any point during that year. The lease offer includes a fair market value purchase option at the end of the lease term.

HP has been ginning up its focus on North American SMB sales of late -- viewing the space as a "$60-billion opportunity," according to newly named SMB channel sales chief Meaghan Kelly.

Some HP resellers like Denali Advanced Integration, an HP Platinum Partner, said they make full use of HP Financial Services to drive business. For others, financing promotions like this latest one can be hit or miss.

"Maybe it's a Midwestern mentality, but 85 percent of my clients won't borrow money to buy computers," said Jay Tipton, vice president of solution provider Technology Specialists. "I've gotten one Cisco deal at zero percent over the last year-and-a-half and one Microsoft deal last year. That's all."