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Distribution has long held the position of being the channel's bankers and being one of the main sources of credit for resellers. Exertis is adding some more depth to that status with plans to offer a selected number of SME resellers the chance to double their credit.
The distributor could provide an additional £20m with the option to go even further in some cases where resellers have reached their credit limits.
“Our aim is to provide our resellers with a credit limit that can help them win and grow their business, safe in the knowledge that they have the financial resource to support it," said Mark Reynolds, B2B sales and commercial director at Exertis.
"With our broad technology range, resellers want to take advantage of the efficiencies of buying from one source. By working with our credit insurers, we are in a position to double the facility for over 1,600 resellers and even extend that further if they remain within our usual credit terms," he added.
Exertis has been working with public trading insurer Chubb Ace and is planning to be proactive in suggesting certain resellers should take advantage of the offer.
Credit has always been an issue in distribution and if anything has become even more crucial with the arrival of the cloud. Resellers under pressure to change their business models have come under pressure to work their distie relationships.
Research from the Global Technology Distribution Council on Distribution Models in the Digital Era quoted IDC about the changing role the sector plays in a cloud and managed services dominated landscape.
“The cloud marketplace tools from distributors need to enable unified bills, under the solution provider’s ownbrand to end customers. That is the digital equivalent to pick, pack and ship. It’s just done in a more timelyvirtual manner. The element of the bank is also there. Somebody has to pay the vendor up front for that years license. Who is bridging the funding? That’s an element that never gets discussed," stated Pam Miller, director, partnering research, channels and alliances research, IDC.
"Distributors are doing what they did before, but in a digital framework -- and in a more complex environment than ever before," she added.
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