Microsoft looks to unblock order books with 0% financing offer


Microsoft looks to unblock order books with 0% financing offer

Simon Quicke

Microsoft has taken the wraps off a financing package designed to unblock reseller order books and encourage wider adoption of the monetary tools used as standard in other industries.

As part of the Open Smarter Way financing package the first six months will be interest free and the second will keep track with bank base rate making it more attractive for customers looking to invest in technology in the short-term.

Scott Dodds, general manager of SME and partner group at Microsoft, said that as a result of the recent drop min interest rate the level of the second half of the year was 3% but that would drop further if the Bank of England cut levels in the future.

"When we told resellers about the deal they loved the idea that the level could drop even more in the second half of the year," he said.

He said that financing was used as a matter of course elsewhere like the car industry and it needed to get a greater acceptance in the channel.

"Right now cash is king and resellers need to use financing to show customers they can improve technology, which can save money and improve efficiencies, without having to spend the money now," he added.

The Microsoft programme follows calls across the industry to try and encourage resellers to use financing in order to ease the credit crisis that surrounds most customers.

Earlier this month Cisco urged more resellers to take advantage of its Cisco Capital financing scheme after revealing that only 50% of partners currently used the package.

In MicroScope last week Philip White, CEO of financing specialist Syscap warned that although it had many benefits, that financing was not the "cure for all ills".

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