COVID-19 has changed the way we work, the way we interact, and the way we approach public health. But it hasn’t changed our commitment to our partners. We have our partners’ backs. We always have, and always will.
That’s why we’ve been working on ways we can continue to support our partners – so they can continue to support their customers – during this unpredictable time.
IMMEDIATE RELIEF FOR PARTNERS
We understand that financing and cash flow liquidity play an important role in any business continuity plan. Many of our partners may need help in this area as they try to serve their customers and help their employees remain productive during this difficult time. With that in mind, we have taken actions to provide immediate financial relief to metaled partners while helping build capabilities and pipeline for the future:
- We will provide a one-time cash payout for up to 50 percent of current partner Market Development Fund (MDF) / Business Development Fund (BDF) balances for use towards future marketing activities. Partners can apply for this at any time between April 13 – June 20, 2020. Upon approval, partners will receive immediate payment up front, freeing up cash flow, offering flexibility and providing the time value of money. Further details will be available on the MDF/BDF program
- For our metaled solutions providers, we are offering fee-waived Services Deployment training for Unity XT, VxRail and DP4400 from now until May 31, 2020, ensuring that eligible partners continue to build valuable capabilities during this time.
- We are also introducing new team-based pricing options for solutions providers to make all training more affordable for our partners’ teams.
- For distributors, we are removing the 1H FY21 client solutions growth targets and increasing base rates to improve predictability of earnings. This is aligned with our removal of target-based programs for solution providers announced in February 2020 as an effort to simplify and improve earning predictability in our rebate structure.
- We extended unspent earned MDF and BDF that was scheduled to expire between March and July to July 24, 2020.
LEADING THE WAY WITH WORKING CAPITAL SOLUTIONS (WCS)
In addition, the power of our Dell Technologies Working Capital Solutions (WCS) Program can help partners through this period of uncertainty.
Many of our partners are already familiar with our WCS program, which has been around for more than two decades and now supports more than 1,500 partners across 74 countries. Through Dell Technologies’ preferred financing vendors, we offer our resellers and distributors some of the most favorable payment terms in the industry, as well as increased credit capacity and simplification of partner accounts payable management through online tools— all of which may help partners’ business grow.
Also, did you know?
- WCS complements Dell Financial Services (DFS). Partners whose end customers use DFS may receive payment in as quickly as two days, and if they’re using WCS, in most scenarios, partners who qualify can benefit from 60 to 90 days payment terms extension to pay their financing vendor.
- WCS offers flexibility for partners to extend up to 120 days from the invoice date (subject to financing vendor approval) for an incremental fee negotiated with the financing vendor, providing adaptive liquidity solutions.
- WCS enables partners to win bigger. With WCS, partners can meet end user demand for longer invoice payment terms. With a range of 60-90 days for qualifying partners, the partner cash conversion cycle can be fully tailored to mirror the payment demands of their end user.
DELL FINANCIAL SERVICES (DFS), AN $8.5B GROWTH ENGINE FOR OUR CUSTOMERS AND PARTNERS
Dell Financial Services (DFS) has been a leader in technology payment solutions for the last 22 years. DFS originations increased 16% year over year to $8.5B in FY20. In addition, we have been delivering flexible consumption solutions to our customers and channel partners for more than 14 years. Our consumption-based offerings are now approaching over $3.5B in assets under management.
We know that customers need technology right now, but many organizations need more flexible repayment terms, and our partners may need help managing cash flow or end-user credit risk.
Beyond the extensive payment solutions DFS offers, below are the additional options available through 5/1/20**. Each solution can be fully customized to your customers’ needs to include deferred payment schedules and zero up-front costs to help preserve capital.
- 24-month Financing at 0% interest for Servers and select Storage
- 36-month Financing at 3.99% interest for majority of Dell Technology products
- As low as a 6-month term and Rotation lease options for select laptops, thin clients and mobile workstations
- 3-, 6- and potentially 9-month deferrals for qualified credit
As I stated in my open letter to partners last month, it’s a great honor to be part of this remarkable partner community that continues to empower both large and small organizations around the world, especially in these unsettling times. We welcome your questions, feedback and suggestions for how we can continue to help you and your customers, from guidance on remote working to simple support and friendship. Thank you for your partnership, and know we are here for you, today and always.
**Payment solutions provided and serviced by Dell Financial Services L.L.C. or its affiliate or designee (“DFS”) for qualified customers. Offers may not be available or may vary in certain countries. Where available offers may be changed without notice and are subject to product availability, applicable law, credit approval, documentation provided by and acceptable to DFS and may be subject to minimum transaction size. Offers not available for personal, family or household use. Restrictions and additional requirements may apply to transactions with governmental or public entities.