IT Financing Solution Helps Nortel Resellers and SMBs Gain Competitive Edge
Faster, Flexible Funding for Business Communications
FEBRUARY 13, 2007 - LONDON - Nortel* [NYSE/TSX:NT], in association with Grenke Leasing, announced the launch of flexible IT financing solutions as part of an ongoing strategy to help small and medium businesses (SMBs) use enhanced communications resources to simplify their business. The new SMB Financing Services provided via Grenke and available exclusively from Nortel resellers, will allow SMBs to gain competitive advantage by leasing advanced converged communications capabilities.
SMB customers will be able to lease communications assets for a fixed monthly charge that includes installation and maintenance services. The new service delivers an online leasing fee quote within just 20 minutes, giving SMBs rapid access to advanced communication technologies and resellers the benefit of payment at the start of the leasing period.
The new financing solutions allow SMBs to overcome the cash flow issues that can impede their competitiveness by limiting their ability to invest in and quickly gain business benefits from their communications solutions. Grenke’s SMB Financial Services are available now in the UK and are scheduled to be extended to countries across Europe later in 2007.
“One of the biggest problems for our SMB customers is cash flow, so financing is an absolute must in today’s market. By offering a financial service customized for SMBs, Nortel is enabling them to invest strategically in communications technology rather than implementing on a restricted piecemeal basis because of limited budgets. This enables them to benefit from technology in the same way as larger businesses that have the advantage of capital that can be invested,” said Paul Fullman, director, product development, at Datasharp a specialist provider of business telephony and Nortel Gold Solutions Partner.
SMBs interested in the new financing solutions simply register interest with their Nortel reseller who then uses an intuitive web tool to generate a quote from Grenke. The financing option is subsequently printed and emailed to the customer for consideration. When the customer makes a decision to proceed the reseller can simply approve the quote and convert it into a contract between Grenke and the customer.
“Vendors like Nortel really understand the financial pressure that resellers are often under,” said Ian Bullingham, sales director, Midland Telecom. “A solution like this can help us open doors to the end user and enable them to achieve their business goals. Partnering with experts such as Nortel and Grenke Leasing helps to reduce the financial burden carried by resellers.”
“We’re investing significant resources in strengthening our offering for Nortel’s SMB resellers and making it easier for new and existing partners to work with us,” said Amanda Giddins, director, Distribution/Indirect Reseller Business, EMEA, Nortel. “We launched the Nortel SMB Accelerate Partner Programme in early 2006 and now, with these new financing solutions, we’re stepping up our commitment to this market. Many resellers use financing as an integral part of the sale, one of the key benefits of this offering is improved cash flow for the resellers, who receive payment on delivery.”
“Leasing in the IT industry is a trend that will continue to grow in line with increasing pressures around selling prices and financial flexibility. We have been offering leasing programmes to businesses in Europe for 25 years and teaming with Nortel presents an exciting opportunity to help SMBs streamline their buying decisions and help them to purchase the technology required to meet their business needs,” said Kevin Green, commercial director, Grenke Leasing Ltd.
Nortel is a recognized leader in delivering communications capabilities that enhance the human experience, ignite and power global commerce, and secure and protect the world’s most critical information. Our next-generation technologies, for both service providers and enterprises, span access and core networks, support multimedia and business-critical applications, and help eliminate today’s barriers to efficiency, speed and performance by simplifying networks and connecting people with information. Nortel does business in more than 150 countries. For more information, visit Nortel on the Web at www.nortel.com. For the latest Nortel news, visit www.nortel.com/news.
Certain statements in this press release may contain words such as “could”, “expects”, “may”, “anticipates”, “believes”, “intends”, “estimates”, “targets”, “envisions”, “seeks” and other similar language and are considered forward-looking statements or information under applicable securities legislation. These statements are based on Nortel’s current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which Nortel operates. These statements are subject to important assumptions, risks and uncertainties, which are difficult to predict and the actual outcome may be materially different. Further, actual results or events could differ materially from those contemplated in forward-looking statements as a result of the following (i) risks and uncertainties relating to Nortel’s restatements and related matters including: Nortel’s most recent restatement and two previous restatements of its financial statements and related events; the negative impact on Nortel and NNL of their most recent restatement and delay in filing their financial statements and related periodic reports; legal judgments, fines, penalties or settlements, or any substantial regulatory fines or other penalties or sanctions, related to the ongoing regulatory and criminal investigations of Nortel in the U.S. and Canada; any significant pending civil litigation actions not encompassed by Nortel’s proposed class action settlement; any substantial cash payment and/or significant dilution of Nortel’s existing equity positions resulting from the approval of its proposed class action settlement; any unsuccessful remediation of Nortel’s material weaknesses in internal control over financial reporting resulting in an inability to report Nortel’s results of operations and financial condition accurately and in a timely manner; the time required to implement Nortel’s remedial measures; Nortel’s inability to access, in its current form, its shelf registration filed with the United States Securities and Exchange Commission (SEC), and Nortel’s below investment grade credit rating and any further adverse effect on its credit rating due to Nortel’s restatements of its financial statements; any adverse affect on Nortel’s business and market price of its publicly traded securities arising from continuing negative publicity related to Nortel’s restatements; Nortel’s potential inability to attract or retain the personnel necessary to achieve its business objectives; any breach by Nortel of the continued listing requirements of the NYSE or TSX causing the NYSE and/or the TSX to commence suspension or delisting procedures; (ii) risks and uncertainties relating to Nortel’s business including: yearly and quarterly fluctuations of Nortel’s operating results; reduced demand and pricing pressures for its products due to global economic conditions, significant competition, competitive pricing practice, cautious capital spending by customers, increased industry consolidation, rapidly changing technologies, evolving industry standards, frequent new product introductions and short product life cycles, and other trends and industry characteristics affecting the telecommunications industry; the sufficiency of recently announced restructuring actions, including the potential for higher actual costs to be incurred in connection with these restructuring actions compared to the estimated costs of such actions and the ability to achieve the targeted cost savings and reductions of Nortel’s unfunded pension liability deficit; any material and adverse affects on Nortel’s performance if its expectations regarding market demand for particular products prove to be wrong or because of certain barriers in its efforts to expand internationally; any reduction in Nortel’s operating results and any related volatility in the market price of its publicly traded securities arising from any decline in its gross margin, or fluctuations in foreign currency exchange rates; any negative developments associated with Nortel’s supply contract and contract manufacturing agreements including as a result of using a sole supplier for key optical networking solutions components, and any defects or errors in Nortel’s current or planned products; any negative impact to Nortel of its failure to achieve its business transformation objective; additional valuation allowances for all or a portion of its deferred tax assets; Nortel’s failure to protect its intellectual property rights, or any adverse judgments or settlements arising out of disputes regarding intellectual property; changes in regulation of the Internet and/or other aspects of the industry; Nortel’s failure to successfully operate or integrate its strategic acquisitions, or failure to consummate or succeed with its strategic alliances; any negative effect of Nortel’s failure to evolve adequately its financial and managerial control and reporting systems and processes, manage and grow its business, or create an effective risk management strategy; and (iii) risks and uncertainties relating to Nortel’s liquidity, financing arrangements and capital including: the impact of Nortel’s most recent restatement and two previous restatements of its financial statements; any inability of Nortel to manage cash flow fluctuations to fund working capital requirements or achieve its business objectives in a timely manner or obtain additional sources of funding; high levels of debt, limitations on Nortel capitalizing on business opportunities because of support facility covenants, or on obtaining additional secured debt pursuant to the provisions of indentures governing certain of Nortel’s public debt issues and the provisions of its support facility; any increase of restricted cash requirements for Nortel if it is unable to secure alternative support for obligations arising from certain normal course business activities, or any inability of Nortel’s subsidiaries to provide it with sufficient funding; any negative effect to Nortel of the need to make larger defined benefit plans contributions in the future or exposure to customer credit risks or inability of customers to fulfill payment obligations under customer financing arrangements; any negative impact on Nortel’s ability to make future acquisitions, raise capital, issue debt and retain employees arising from stock price volatility and further declines in the market price of Nortel’s publicly traded securities, or the share consolidation resulting in a lower total market capitalization or adverse effect on the liquidity of Nortel’s common shares. For additional information with respect to certain of these and other factors, see Nortel’s Annual Report on Form10-K/A, Quarterly Reports on Form 10-Q and other securities filings with the SEC. Unless otherwise required by applicable securities laws, Nortel disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
*Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks.
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