Microsoft financing program targets SMBs
By Lawrence Casiraya
INQUIRER.net
First Posted 17:16:00 10/29/2008
Filed Under: Financing, Stock Offerings
MANILA, Philippines -- Microsoft announced a financing program that allows local small and medium businesses (SMBs) to pay for software licenses up to nine months.
The financing scheme, which started October 2008 and ending in March 2009, applies to minimum purchases of P250, 000 and a maximum of P1 million per customer.
Under this program, SMBs will initially pay 30 percent of the transaction costs and the rest is spread equally over nine months.
This financing program is intended for emerging markets and was likewise introduced in Indonesia.
Locally, Microsoft ran a financing program that was tied to a local bank.
"But a challenge for most SMBs is that banks are very stringent about collateral, which is usually the desktop PCs wherein the software is installed," said Louie Castaneda, Microsoft Philippines small mid-market solutions and partners (SMSP) director.
Microsoft tries to address this challenge by becoming its own financing institution.
Those who want to avail need only to present legal documents, such as business registration, according to Castaneda.
"Based on our study, there are more than 10,000 medium-sized businesses and 6,000 small businesses we can target with this program," he said in an interview.
Medium-sized businesses are typically organizations with 500 workers and below. Small businesses, meanwhile, employ up to a hundred workers.
A million pesos, for example, equates to 10 Windows Vista licenses and 10 Microsoft Office licenses. But the program can also include other Microsoft products.
"Based on our customer base, even if SMBs can afford it, cash flow is always an issue which means they would rather invest it in other assets," Castaneda said.
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