Dell Inc. has spent the last year trying to improve its small business sales, and it appears the strategy is paying off for the PC maker and small business owners, says the Wall Street Journal.

Dell is the number one provider of personal computers to small businesses, and in an effort to maintain that customer base, the company is offering more credit and discounted services to small businesses. Some of those deals include interest-free credit on purchases over $25,000 and free or discounted computers if a small business buys other products, says the Wall Street Journal.

Those efforts seem to be working, as Dell’s small and medium business units posted a 10 percent gain in revenue in the fiscal fourth quarter over last year, said the Journal.

Bank lending to small business has been tight, and Dell extends most of its $7 billion of available credit directly instead of through traditional loan providers. The company told the WSJ that about 22 percent of its small business customers rely on store credit for purchases.

The strategy may prove risky for Dell if those customers default on their loans. To minimize that risk, Dell asked some of its customers to teach salespeople about small business budgets. A Dell spokesperson told the WSJ those training sessions have helped the company evaluate credit risks.


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