eIQnetworks Extends Credit Options For MSPs

The eIQ Credit Corporation now gives eIQnetworks partners a more convenient way to spread the cost of the vendor's software over the long term, said Brian Mehlman, director of marketing at the Acton, Mass.-based company. Third-party products needed to work with an eIQ solution can be included in the financing, which enables solution providers with MSP businesses to lessen the initial cost of an eIQ product deployment, he said, noting that MSPs typically realize revenue over longer-term periods.

"MSPs drove us toward this effort," Mehlman said. "And we have built this [eIQ Credit] to be very service provider-friendly."

About two years ago, eIQnetworks began allowing partners with MSP businesses to make quarterly payments on the vendor's software over periods of about two years, according to Mehlman. The program was so popular with MSPs that eIQnetworks decided to partner with a large bank in the Northeast and create eIQ Credit, he said.

Now partners can get 24-, 36- and 48-month payment terms with highly competitive interest rates from eIQnetworks, and at the same time they don't have to strain on other credit lines, such as those from their distributors.

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Michael Bruck, president of BAI Security, a managed security provider in Warrenville, Ill., was one of the first eIQnetworks partners to use the eIQ Credit. Looking to add new services for BAI's managed security customers, Bruck said he used the credit program to buy eIQnetworks' Enterprise Security Analyzer (ESA) product.

Launched in June, ESA provides functions such as threat visualization, centralized event log management, alerting correlation and enhanced forensics. Its price starts at about $8,000 for a five-device, five-host license and rises to about $25,000 for a 50-node enterprise license, according to eIQ.

"[ESA] was going to allow us to add some new service offerings for our clients, so we figured that by using the eIQ financing offer it would give us the opportunity to acquire these new service offerings. And as customers came up to speed on them, we could extend our expense out over time," Bruck said, adding that the terms "were better than what our traditional financing options would have been."

Adding ESA will boost BAI's profits as customers adopt the new security services, according to Bruck. But that adoption will take time, and the extended financing from eIQnetworks will help keep BAI from dipping into the red, he said.

eIQ Credit's lines of credit are available to practically all of eIQnetworks' partners. Interest rates vary based on known credit risk, after an assessment by the vendor and its lending partners.