It's a fact that the vast majority of IT purchases are cash transactions that require hefty upfront payments. Using Microsoft Financing can help eliminate hefty upfront costs and spread the payments in predictable instalments over the life of your IT investment.

Whether your budget is $3,000 or $1,000,000, by using Microsoft Financing you can increase your IT spend so that you can have the IT solution you need today.

The chart below illustrates the difference between a typical upfront cash-based transaction and one that incorporates Microsoft Financing.

By using Microsoft Financing in this example, the customer comes in 25 percent under their annual IT budget, giving them the ability to purchase their optimal IT solution and leaving them with budget for additional IT requirements.

Microsoft Financing also provides you with the flexibility to add IT solutions as your business needs change. You can make additions starting from $3,000 at any time during the term of the loan contract based on additional credit approval.

In short, you can shift your focus from "What can we afford today?" to "What does my business need?"

The Microsoft Financing program provides a solution that is:

Simple and Affordable

• A principal-and-interest loan.
• Financing for Microsoft software and services, partner services, hardware and 3rd party software, for loans up to $5M local currency that have a minimum of 15% Microsoft content, and 85% for loans $5M and over.
• Loans from $3,000 with no pre-established maximum.
• Loan terms from 1 to 3 years for amounts up to $10K, and 1 to 5 years for amounts $10K and over.
• No application or management fees.
• Competitive rates determined by market conditions, term and size of loan.

Flexible and Easy

• Solutions can be provided for upfront, annuity, milestone and deferred payment scenarios.
• Add products and services from $3,000 at any time during the term of the contract based on additional credit approval.

Fast

• Quick turnarounds on credit approvals - 24 hours up to $100K, 2 business days for amounts $100K to $500K, 5 business days for amounts $500K to $1M.

• How does Microsoft Financing work in New Zealand? Microsoft and De Lage Landen Pty Ltd (DLL), a subsidiary of Rabobank, have worked together to establish the Microsoft Financing program to offer financing to customers. Customers enter into loan contracts directly with DLL.
• Who is eligible to apply for Microsoft Financing? Any registered business entity that complies with required credit guidelines.
• How do customers get a quote or apply for Microsoft Financing? Customers interested in Microsoft Financing need to contact Microsoft Financing or their Microsoft Registered Certified or Gold Partner to get a quote and apply.
• How is a credit decision made? The extension of credit is based on a number of variables, including a customer's performance in servicing prior debt. Each credit decision is made on a case-by-case basis.
• Are there any requirements for collateral? The software and/or software and hardware that make up the deal will constitute the collateral.
• How are rates determined and how long are they valid? Rates are determined in the local market depending on market conditions, term and size of loan. Rates are reviewed monthly and on quote to customers and are valid for 30 days.
• Are interest rates on loans fixed or variable? Interest rates are fixed over the term of the loan.
• Are down payments requirement from customers? There is generally no requirement for down payments.
• Is there a maximum transaction size? There is no pre-established maximum or credit limit. Customers can apply for any amount necessary to finance the entire solution as long as it exceeds the minimum transaction size. All applicants must be approved for credit.
• How are customers billed for their loan instalments? Loan instalments are payable by direct debit.
• Can customers repay their loans early? Under the standard terms and conditions of the loan agreements, customers can obtain consent to repay their entire balance owing early.
• What is the required Minimum Microsoft Content for financing? The customers total loan amount must be comprised of a minimum of 15% Microsoft content for loans up to $5M local currency, and 85% for loans $5M and over. Microsoft content includes Microsoft software and Microsoft delivered services.
• Does Microsoft Financing finance non-Microsoft products? Yes. Microsoft Financing is available for non-Microsoft products as long as the loan meets Microsoft content requirements.
• Does Microsoft Financing finance partner services? Yes. Microsoft Financing is available for partner services as long as the loan meets Microsoft content requirements.
• Can the tax associated with the purchase of the IT solution be financed? Yes. Customers can finance the tax associated with the financed IT solution as part of the total loan, as long as the total loan meets minimum Microsoft content requirements. For loan transactions where tax is included in the total financed amount, the tax on the Microsoft content will be counted as Microsoft content towards minimum requirements.
• What licensing scenarios can be financed? Microsoft Financing is available for purchases of Microsoft software under most licensing scenarios: Full Packaged Product, OEM, Open, Open Value, Select, Enterprise Agreements and Microsoft ® Dynamics™.
• Can Microsoft Financing finance Software Assurance? Yes Microsoft Financing can finance the purchases of License only, License and Software Assurance or Software Assurance only.
• How do Microsoft partners get paid for products and services that are included in the loan agreement? On receipt of correctly executed customer documentation to finalise financing, and the partner submitting original customer invoice to DLL, partners will be paid within 48 hours by direct debit.
• Can Microsoft Financing provide any accounting advice in regards to the use of a financing program? No. Microsoft Financing cannot offer any accounting, tax or legal advice on the suitability of a financing program. It is recommended that independent advice is sort for questions of this nature.