Financial services giant Wells Fargo is looking to take its channel financing business to the next level this year.
Wells Fargo this week signed its second major vendor partnership for channel financing this month, forming a pact with AT&T around its Partner Exchange Program to provide 60 days of interest-free financing for AT&T partners. Earlier this month, Wells Fargo partnered with Dell for a similar financing program for Dell resellers. This new partnership further demonstrates the San Francisco-based company's larger coordinated focus on the channel and the tech sector, said Steven Hopkins, division manager of direct supply chain at Wells Fargo.
"We are looking at solutions to enable sales growth, working capital and risk mitigation in the channel," said Hopkins. "If you look at cloud, managed services, a lot of resellers are struggling with financing and from an AT&T standpoint they are looking to make it easier to bundle services and go to market and we are helping to provide the liquidity to partners."
Similar to the channel financing program for Dell, AT&T telecom services resellers will also have the 60-day term, larger lines of credit and other incentives, said Hopkins.
"There aren’t a lot of differences in the new program, it's just the different space and different resellers we're reaching out to," said Hopkins. "The only difference here is the hosting services that get pushed into this mix of business. It's the technology and tools that drive to help the reseller."
For the past four years, Greensboro, NC-based Varrow has been getting its channel financing from Wells Fargo. The financial institution has been accommodating the mobility, cloud and security-focused solution provider with a stabilized and centralized cash flow and purchase process, said Daniel Weiss, COO of Varrow.
"Instead of getting multiple invoices from multiple vendors, we have 98 percent of our purchasing through Wells Fargo," said Weiss. "In the past we had challenges around rapid growth and making sure to have enough credit to do business. Working with Wells Fargo is good for business growth because it allows a predictable cash flow to tie our investments back into the business."
NEXT: Wells Fargo's History of Acquiring A Channel Financing Division