Nortel Offers New Financing for VARs

By Jessica Davis  |  Print this article Print


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In a tight credit environment the telecom equipment maker is giving its channel partners more financing options.

Looking to help channel partners complete deals, Nortel has created a new financing program for all its North American channel partners to help them finance both products and services.

The telecoms equipment maker promoted the program to its distributors in December. It offers 60-day financing on purchases of Nortel products and services purchased through its distributors, which includes Ingram Micro, Westcon, Synnex and Tech Data. IBM and DLL are serving as third-party financing companies.

For an update on how Nortel's channel changes have improved partner rebates click here.

The new financing is part of Nortel's larger suite of finance options, including lines of credit and purchase order financing programs available to smaller VARs that land big deals.

"Purchase order financing is something that partners have been asking for," said David Wilkinson, vice president of channel strategy at Nortel. The program lets VARs leverage the customer's credit worthiness for a particular deal, rather than relying on the credit worthiness of the VAR itself.

"Since we've launched it on Dec. 3, there have been several examples of partners leveraging this to do deals they would not have been able to do in the past," he said.

Jessica Davis covers the channel for eWeek and Channel Insider. Her technology journalism career began well before anyone heard of the World Wide Web and has included stints at Infoworld, Electronic News/EDN, and the Philadelphia Business Journal. Her work has also appeared on CNN and Forbes.com. She has covered hardware, software and networking, as well as the business side of technology. She has won several journalism awards, including a national ASBPE award for best staff-written column, and was named Marketing Computers hardest working tech journalist on their inaugural list of top tech journalists. Jessica can be reached at jessica.davis@ziffdavisenterprise.com

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