Dell to offer zero pct financing to US businesses

SAN FRANCISCO (Reuters) - Dell Inc (DELL.O) said on Tuesday it will offer zero percent financing to U.S. corporate customers and cut prices on some products to keep enterprises buying even as the economy slides into a recession.

Most large business and institutional customers will be eligible for zero percent financing, the company said, along with some select smaller business. Dell will also offer deferred payment plans to some businesses.

PC makers are struggling to boost sales in the face of an increasingly dire economic outlook. In its third-quarter results released last week, Dell posted a 3 percent decline in revenue. Demand has been plummeting as nervous businesses rein in costs and shelve plans to replace older technology.

"It's really a bit more than just saving dollars on the monthly budget. It's enabling them to procure the equipment," said Larry Graves, general manager of the commercial group at Dell Financial Services, the company's financing arm. "We think it just gives them more options and flexibility."

The base price reductions on business products will be the company's first since January. Dell will lower prices on certain models from its line of Latitude E-series laptops, as well as on its PowerEdge servers.

Dell, which has been restructuring and cutting jobs, considered selling its financial services unit this year, but ultimately decided to keep it. Chief Executive Michael Dell said on a conference call last week that the unit's credit losses have increased as the economy has deteriorated, but said it is profitable.

Software giants Microsoft Corp (MSFT.O) and SAP AG (SAPG.DE) also recently announced zero percent financing offers.

Shares of Round Rock, Texas-based Dell rose 28 cents, or 2.8 percent, to close at $10.42 on Nasdaq.

(Reporting by Gabriel Madway, editing by Richard Chang)