Business canadian company finance small

3Com has joined the ranks of IBM and HP in forming a new unit to offer financing options for its resellers and customers. Mississauga, Ont.-based 3Com Inc. said late last month it had launched 3Com Capital Corp. in 17 offices around the world, including one in Canada.

The new entity offers multinational leasing, structured leasing and operating structure leasing programs.

The company said 3Com Capital's programs will help its channel partners simplify financing for everything from worldwide projects and controlling capital expenditures to deferring or accelerating payments for customers in particular financial situations. The idea is closely akin to that offered by PC vendors -- IBM Global Finance and HP Finance have been operating in Canada for years.

Dan Roberts, general manager for 3Com Canada Capital's Canadian division, said the company wants to structure financial programs in certain markets to make it easier for resellers to complete their sales.

"The last thing you want to do is demonstrate your product to your customer and then put the customer in a position where they have to find their own financial resources to do it," he said. "If you can offer that for them, it makes the selling cycle a lot easier."

Pat Kewin, director of national accounts and service providers, agreed, adding that financing occasionally leads resellers into areas outside their core competancies. "They're more expert in putting together technology solutions," he said.

3Com Capital is not a huge operation. In Canada, three people are dedicated to supporting the company, the sales force and the reseller market. Kewin said that while many small or medium-sized resellers would likely take advantage of the operational and structured programs, the rise of dot-com companies which launch in Canada and then move to the U.S. means many partners may opt for worldwide financing arrangements.

"They've brought in people with a finance or a leasing background," said Roberts. "For the product that 3Com Capital is offering, you pretty much need people with a background in that marketplace to support the 3Com sales force and their resellers."

3Com Capital has 17 offices around the globe The program is designed to simplify leasing.