Have you been having trouble this year getting customers to pay quickly? Recognizing a common refrain across the channel, distributor Tech Data says it has been working with its product vendors and financing partners to come up with additional financing, flooring and leasing options.
Tech Data and several of its vendors have negotiated extended flooring terms that solution providers a little extra wiggle room before they are required to pay for products purchase on behalf of their customers. This program sits on top of resellers’ traditional net-terms with Tech Data.
Among vendors that have stepped up to the plate include Cisco Systems, Fujitsu and Kaspersky, which have all come up with 60-day extended terms for products purchased through Tech Data. (Cisco is working with Castle Pines and TDCreditServices, while Fujitsu and Kasperksy are working with TDCreditServices and GE Capital Solutions.) Other vendors that have arranged 60-day terms through a deal with Tech Data and GE Capital Solutions include Fortinet, Hewlett-Packard (which has got some additional credit plans of its own going on right now with and without Tech Data), Lexmark, Lucent, SonicWALL, Sony, Symantec and VMware.
Tech Data is working closely with financing companies including GE Capital Solutions, IBM Global Financing, Castle Pines Capital and De Lage Landen Financial Services to finetune its credit options.
The distributor has ALSO come up with what I consider to be an innovative new leasing offering with CIT Technology Financing Services under which resellers can offer monthly billing to their customers as a payment option instead of forcing them to pay one lump sum. Transactions can include ANY hardware, software or service from a Tech Data vendor partner but they can also be used by resellers to help finance managed services deals.