$110 million in new credit will help NA channel put technology into hands of SMBs hurt by COVID-19 pandemic
Ingram Micro is responding to the current economic straits SMBs in the United States and Canada are in by extending $110 million in additional credit to partners in North America and launching two new partner financing programs to help smaller companies buy much-needed IT products and services.
The Lowdown: In addition, the giant distributor is temporarily waiving any fees associated with most of its partner financing program and is offering exclusive terms to members of the Ingram Micro Trust X Alliance and SMB Alliance communities.
The Details: The moves announced Tuesday will offer much-needed cash flow at a time when the global coronavirus pandemic has rocked the world’s economies and forced many businesses to close at least temporarily, making the futures of many smaller companies uncertain.
They key parts to Ingram’s efforts are:
> Additional $110 million in credit: $100 million is going to partners in the United States and another $10 million to those in Canada. It’s available immediately to about 2,000 partners.
> KickStart Financing and Future Funds programs: Give channel partners more cash-flow options to finance technology, services, and support. In addition, they enable more complete solutions to be sold together.
> Future Funds: The program also is offered with interest-only payments for six months, with starting payments as low as 1.5% of the total purchase price. After six months, customers can pay off the balance or finance for another 12 to 60 months. There is a $10,000 minimum purchase.
> Exclusive terms: Ingram’s Trust X Alliance includes more than 350 top IT solution providers and tech vendors. The SMB Alliance gives smaller companies access to certain benefits and resources.
The Impact: Ingram Micro and other top distributors are offering new programs and support to channel partners during the current coronavirus outbreak. Ingram last week outlined a number of steps it was taking to help partners, from bundled solutions and new financial services and credit options to working with tech vendors to ensure a steady inventory of critical products, including new laptops, refurbished devices, and remote working tools.
The Buzz: “Our channel partners and their customers need the funding and flexibility to make the right business technology decisions for their organizations, now and in the future,” said Ingram Micro CFOs Kelly Carter (Canada) and Anthony Mackle (United States). “Our teams worked smart and fast to customize programs that will work best for the type of solutions our partners are delivering, and for the business climate expected in the weeks and months ahead.”
“We have the expertise and solutions we need to help our clients regardless of the business climate, and now we have even more flexibility on how we can manage our cash flow,” said Mark Essayian, president of KME Systems and a member of Ingram Micro Trust X Alliance. “Ingram Micro is showing a lot of heart and generosity by [putting] these financial solutions forward to help us, so we can also help our clients during these uncertain and challenging times.”
“During times of uncertainty and crisis, you have to work closer and rely even more on your partners and your overall ecosystem,” said Ingram Micro senior vice president and chief country executives Kirk Robinson (U.S.) and Bill Brandel (Canada). “We’re in this together and need to continue to ask ourselves and those we serve and collaborate with: ‘What more can we do to help?’”