Dell India has tied up with IBM Global Financing to boost its sales through channel business in the country.
Incidentally, IBM is an investor in Dell. The partnership provides commercial customers with financing alternatives for Dell products. Dell’s partners will benefit from capital and better management of their working capital by providing suitable credit lines and credit terms. Enhanced credit limit, extended credit period, new avenues of financing partners, and competitive interest rates, etc. are multiple benefits.
Its channel partners can leverage the existing collaterals to develop a Credit Multiplier Model, which allows for higher credit limits without the pressure of additional security. The process involves a short-term revolving fund for partners without disturbing the existing working capital availed from banks.
Partners also benefit via leveraging corporate dependency levels on Dell to compute interests rates lesser than working capital loans and up to 3-4 times on collaterals provided. This offers a great advantage for SMB partners, who may be challenged otherwise, based on their strength in isolation.
“At a time when we are growing our channel business, financing for partners stands testament to our capabilities as an end-to-end solution provider with increased focus on intensifying channel engagement. Eventually, the corporate–channel partner relationship becomes much stronger as partners are able to deliver business results by growing along with us,” said Rajeev Kapoor, executive director of Global Financial Services, Dell.