Tech giant Hewlett Packard Enterprise announced today that HPE Financial Services (HPEFS) is designating more than $2bn in financing specifically to help customers with their financial challenges stemming from the COVID-19 crisis, including cash-flow or liquidity issues.
HPEFS has also introduced initiatives including a Payment Relief Programme to help customers acquire new technology and alleviate some of the financial strain as they navigate this uncertain climate.
The $2bn in HPEFS financing said the company, will be applied to help customers ensure business continuity and adapt in the current environment by addressing new technology financing needs, and convert their IT infrastructure into new sources of capital.
In addition, stated HPEFS, through the new Payment Relief Programme, customers can acquire the technology they need today and pay only 1% of the total contract value each month for the first eight months, deferring over 90% of the cost until 2021.
According to the company, the scheme can be a safety buoy for many businesses to help navigate the financial impact of COVID-19 in the next few months. Beginning in 2021, each monthly payment would equal approximately 3.3% of total contract value.
“This is a challenging time to lead a business. Today more than ever, IT leaders and CFOs play a central role in ensuring financial health while continuing operations”, said Irv Rothman, president and CEO, HPE Financial Services. “At HPE Financial Services, we are committed to helping businesses align their priorities from an IT economics perspective and provide them with concrete solutions so they can move forward.”
Susan Middleton, IDC research director, Flexible Consumption and Financing Strategies for IT Infrastructure, said by dedicating $2bn in financing and leveraging its broad portfolio of flexible payment solutions, HPEFS will help business leaders navigate through the impact of COVID-19 on their markets.
“During this crisis, businesses need help regardless of size of company or industry vertical. IDC recommends that organisations focus on two immediate needs: Conserving capital and utilising flexible payment options like leasing or as-a-service to meet urgent capacity requirement with limited financial impact,” Middleton added.
