Magirus offers credit lifeline

Distributor predicts leasing will take off in the channel as it announces finance tie up with EMC

Storage distributor Magirus has claimed that leasing will represent more than 50 per cent of channel financing by 2012 as it launches the Magirus Credit Solutions service.

Via an agreement with EMC Global Financial Services, the distributor will provide flexible finance packages to free up credit for its resellers to offer their customers.

EMC is the first vendor to participate in the service, but Magirus said it will be expanded to include others over time, with VMware next in line.

Derek Walton, Magirus’ finance director for Northern Europe, said: “It is an ideal route to go down when trying to get a customer to commit. It also gives resellers a chance to approach the customer again before their lease runs out, with new options.”

A key feature of the service is the FastTrack Credit Approval on-line tool, which enables VARs to quickly check credit approval for particular customers.

Clive Teuten, financial director at EMC partner DCG, said the VAR is keen to offer the tool because of the speed with which it works.

“This tool will be a massive help for us because it turns quotes around quickly,” he said. “The service keeps us in touch with the customer.”

Dave Roberts, global financial services and asset management director at EMC, said: “We have previously been known for the enterprise space, but wanted to move more into SME and commercial – the current lack of credit for [SMEs] brought our plans forward.