One of the key differentiators from Dell’s direct business and its channel business was that direct customers were able to finance purchases through Dell Financial Services (DFS). That direct only benefit was removed today by Dell Worldwide Channel Chief Greg Davis. DFS will now be available to solution providers in Canada and the U.S. who not only sell Dell products but also non-Dell products.
Called Power Up Lease, DFS is offering a lower than zero lease stream rate, which means that the lease payments will be lower than the original cost of the equipment.
Erik Reichman, vice president and general manager, Dell Financial Services, Small and Medium Business, told CDN 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.
Mike Lucas, a vice president at Kingston, Ont.-based Zycom Technology, told CDN that he received a soft-launched offering from DFS, which he used to help finance a municipal customer who did not have the capital to purchase the solution outright.
“What we did was turn it into a utility service. Zycom holds the lease and the municipality pays a monthly service bill. Without DFS this deal would not have happened. Dell bridged the gap to make it happen,” Lucas said.
Part of the strategy behind Power Up is to enable better cash flow management through a fair market value lease with a -2 per cent lease stream rate and 36 month term. The Power Up offer will run through Aug. 2, 2013 and Reichman hopes it will be continued after reporting positive results.
Lucas said Power Up is a good move for Dell as it will help SMB clients who want to defer capital costs to operations. “This provides more flexibility in what a customer is able to purchase and how much they can purchase. For Zycom and the channel it allows us to present a full solution to the client with ease of purchasing,” he said.
Reichman added that solution provider partners will be able to augment DFS offerings with other third party financing from distribution or with GE Finance.
Lucas thought that was a great idea because it would give them the ability to enhance their offering.
Reichman, who worked for five years in Canada, believes DFS can gain a lot of traction in Canada especially in the SMB.
