Networking vendor, D-Link, has launched a channel finance program as part of efforts to improve its business market sales.
Managing director, Domenic Torre, said the Vendor Finance Program (VFP) was designed to provide more value-added services for SMBs which could be utilised by its channel base. While strong in the consumer and retail space, he said the vendor wasn't as well known in the business sector.
"In our target market of 50-300 users, businesses aren't necessarily overly rich in working capital to spend on IT," he said. "VFP allows customers to rent products. It becomes an operational expense and a tax deduction, making it more attractive to SMBs."
Leasing financing will be available on sales worth a minimum of $2500. Resellers could also include products from other vendors, provided the whole sale had at least $2500 worth of D-Link equipment, Torre said. There was no maximum limit set.
Financing would be available from 12 months through to five years. At the end of the agreement, equipment would be returned to the leasing company.
All D-Link partners registered under its Empower channel program would have access to VFP.
D-Link has partnered with Macquarie Bank for capital and Supply Chain Capital (SCC) to administer the program. Torre said partners providing financing would log on to SCC's website and enter customer details. The system would then automatically send an email to the customer for verification and a signature. Deals under $50,000 should be processed within 24-48 hours.
Torre claimed the financing service would benefit resellers by giving them a consistent monthly income. It would also help retain margins by splitting the cost of gear across a period of time.