Dell, GE Capital Partner on Dell Financial ServicesBy Jessica Davis | Print
The deal comes just short of three years after Dell bought out CIT Group's 30 percent interest in Dell Financial Services. Now Dell is partnering with GE Capital, and rival Lenovo has partnered with CIT Group.
Dell is partnering with GE Capital to provide end-user financing for Dell’s channel partners. The new deal applies to sales of technology solutions through Dell’s channel partners in the United States and is in response to requests from Dell’s PartnerDirect channel partners.
"Partners told us they wanted the ability to deliver financing solutions to their customers," said Greg Davis, vice president and general manager, Dell Global Commercial Channels, said in a statement. "This program is in response to their request and is specifically designed to address the need to offer financing for their end-user customers."
GE Capital is one of the known names in the technology financing business and works with several vendors. The company says its Vendor Finance business currently operates several technology-related finance programs involving software, hardware and accompanying services.
"We have a legacy of service to technology customers and a dedicated focus on the IT reseller channel, making us uniquely positioned to deliver exceptional service," said Jim Kelly, general manager of GE Capital, Vendor Finance, in a statement. "We stand ready to provide Dell's partners with innovative online resources to manage their portfolios, timely decision-making and a streamlined sales process to help them grow and succeed."
Dell Financial Services was founded in 1997 as a partnership between Dell and financial services firm CIT Group, which is one of the firms that saw its fortunes change during the financial crisis of 2008 and recession of 2009. Dell exercised its right to buy out CIT’s 30 percent share of Dell Financial Services in December 2007.
CIT was a recipient of TARP funds and declared bankruptcy in November 2009, but has since emerged from bankruptcy.
In May, CIT Group signed a letter of intent with Dell rival Lenovo to create Lenovo Financial Services, a program to provide a financing solutions for Lenovo business partners and customers. LFS launched on June 1
"The creation of the Lenovo Financial Services program provides us the opportunity to offer financial services alternatives to our customers," said Rory Read, Lenovo president and COO, in a statement last May. "This announcement demonstrates our commitment to providing our customers the best vendor financing experience possible, and we believe that the Lenovo Financial Services Program will allow us to focus on financing programs tailored to meet the specific needs of our customers."
In September, Lenovo and CIT Group announced plans to expand LFS internationally.