Continuing its efforts to solve for the industry cash crunch caused by the COVID-19 crisis, Ingram Micro Inc. announced two new financial services offerings — 90-Days Same as Cash and the Bakers Dozen — for channel partners in the U.S. and Canada.
Available immediately, Ingram Micro’s 90-Day Same as Cash makes it easy for channel partners to offer customers the flexibility to lease or pay cash for new technology purchasing after 90 days. Ingram Micro is also adding more time to terms with its Bakers Dozen, which extends a typical 12-month financing deal to 13 payments at no additional charge.
In addition, Ingram Micro has lowered the financing terms for its new Future Funds program from 1.5% to 1 % of the total purchase price. Introduced last month, Ingram Micro’s Future Funds program offers interest only payments for six months and then at month seven presents the customer with a choice to pay off the balance or finance the balance for an additional 12 to 60 months.
The new Ingram Micro services come at a time when channel partners and their customers need more affordable and flexible financing. According to a recent channel survey from The 2112 Group, the average solution provider has less than three months’ cash reserve to cover operating expenses and cash flow gaps, and one-third of solution providers report having less than two months of cash on hand.
“Without the help of distribution, the cash crunch within the IT channel could soon become a cash crisis,” notes Larry Walsh, CEO, The 2112 Group. “Of the solution providers we’ve surveyed, 59 percent are looking for extended payment terms and 40 percent are looking for extended lines of credit. Distribution is the most accessible point of entry for this type of credit and financing.”
Since announcing the new services in March 2020, and extending more than $110 million in additional credit to channel partners, Ingram Micro has seen a spike in demand for its financial services—reporting record adoption rates within its two partner communities SMB Alliance and Trust X Alliance. Additionally, Ingram Micro is seeing an increase in usage among its mainstream partner base, as well as more inbound interest from channel partners who have never used Ingram Micro Financial Solutions.
“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,” says Kirk Robinson, senior vice president and U.S. Chief Country Executive, Ingram Micro.
Building on Robinson’s comments, Bill Brandel, senior vice president and Canada Chief Country Executive, Ingram Micro notes: “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. 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.”
GTDC’s CEO Frank Vitagliano agrees, calling on channel partners and vendors to take advantage of the growing business value behind distribution. “The channel ecosystem doesn’t survive or thrive without distribution. 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.”
Additional Ingram Micro financing solutions readily available to channel partners across the U.S. and Canada include Direct Express, Technology as a Service, End-user Financing, Manufacturer Financing, Lockbox Solutions. All Ingram financing programs allow for complete solutions to be financed together versus one-off point sales that require separate financing agreements.