Distributor gives partners, customers greater flexibility when buying technology during coronavirus outbreak
Ingram Micro is running out two new financing programs for channel partners that have been battered by the economic fallout from the global COVID-19 pandemic.
The Lowdown: The distributor on Tuesday unveiled two new programs – 90-Days Same as Cash and the Bakers Dozen – to help partners and their end users in the United States and Canada while also lowering the financing terms for its new Future Funds program.
The Details: Key details of the offerings include:
> 90-Days Same as Cash: Through the program, partners can offer customers the option of leasing or paying cash for new technology purchasing after 90 days.
> Bakers Dozen: The offering extends a typical 12-month financing deal to 13 payments at no additional charge.
> Future Funds: The program, which was announced in March, offers partners interest-only payments for six months. In the seventh month, customers can pay off the balance or finance it for another 12 to 60 months. Ingram Micro is lowering the financing terms for the program from 1.5% to 1%.
More information on the new programs can be found here.
The Impact: Channel partners, like most other businesses, have been hit hard in an economy that has seen companies temporarily closing their doors and more than 26 million people in the United States filing for unemployment. At the same time, businesses that suddenly find themselves in a tight budget crunch are turning to partners to help them adapt to a new working environment that includes most of their employees working from home to help mitigate the spread of the coronavirus.
According to a recent survey by The 2112 Group, the average solution provider has less than three months of cash in reserve to pay for operating expenses and gaps in cash flow. A third of solution providers say they have less than two months of cash at the ready. The 2112 Group is the parent company of Channelnomics.
Background: Ingram Micro continues to unveil programs aimed at helping ease the financial strains on partners and their customers. The company in late March extended $110 million in additional credit to North American partners and launched a new financing program aimed at smaller companies. Days before that, Ingram Micro outlined a range of business continuity programs and emergency action plans that included everything from bundled solutions and financing options to proactive outreach by sales representatives.
The new programs have had an impact. Ingram Micro says it has seen a jump in demand for its financial services and that there have been record adoption rates within its SMB Alliance and Trust X Alliance partner communities. There also is greater use among mainstream partners and growing inbound interest from channel partners that have never used Ingram Micro Financial Solutions.
The Buzz: “In today’s uncertain times, every effort – big or small – that helps move business forward and keeps people connected and working safely and securely counts,” said Kirk Robinson, senior vice president and U.S. chief country executive for Ingram Micro.
“Now’s the time for channel partners to lean into Ingram Micro and use our financing solutions and services to answer the call of customers and businesses who need technology to work from home and/or just work differently,” said Bill Brandel, Ingram Micro’s senior vice president and Canada chief country executive. “We all want to come out of COVID-19 stronger than we went in, and the only way to do that is by working together.”
“Without the help of distribution, the cash crunch within the IT channel could soon become a cash crisis,” said Larry Walsh, CEO of The 2112 Group, which publishes Channelnomics. “Of the solution providers we’ve surveyed, 59% are looking for extended payment terms and 40% are looking for extended lines of credit. Distribution is the most accessible point of entry for this type of credit and financing.”
“The channel ecosystem doesn’t survive or thrive without distribution,” said Frank Vitagliano, CEO of the Global Technology Distribution Council (GTDC). “Now is not the time to ride this out and see what’s left. Now’s the time to be resourceful, listen to the needs of your people and your customers, and take action. Financing is one of the many ways distribution adds value, and these new programs from Ingram Micro are another great example of the critically important support and services distribution provides to the channel and their customers, particularly during times of difficulty and unexpected waves of demand.”