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Resellers take up Tech Data credit offer

Since it made millions of pounds available last month the distributor has seen a positive engagement from thousands of resellers

Distribution has always been seen as the channel's bank with credit available for those trying to smooth deals that otherwise might not get the funding from customers.

But far too often the complaint from distribution was that despite having significant amounts of money available far too few partners were taking advantage of it.

Some of that was to do with a lack of understanding about how credit works and there were other factors including some unawareness of just what the distributors could offer.

Those issues are being overcome if the latest update from Tech Data is anything to go by. The channel player has made £150m of additional credit avaialble to partners and the response in the month since it was made available has been positive.

The distributor had seen SMB sales increase by 20% year-on-year in June and puts a large amount of that down to the additional credit lines it had provided to more than 4,000 resellers. Frequent customers were given access to the extra funding options automatically.

As well as the small business sector there have been signs that the credit is being used to spur on sales in the education market in the key summer sales period.

Cathi Low, director of SMB and public sector at Tech Data, said that it had been pleased with the response from resellers.

"A very large proportion of them have made use if the additional credit available. It's clearly making it easier for them to do business and fuelling significant growth for the channel. It's an excellent outcome," she said.

The additional credit has also been given the thumbs up by Tech Data's vendor partners, who have seen it as a way for them to get resellers to pitch more of their products.

Andy Bass, SMB and channel director for the UK & Ireland at Lenovo, said that it had, "helped many Lenovo resellers do more business right away".

He said some of the activity had been in the educational space but there had also been some commercial customers that had been targeted with the available credit.

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