|
|
|
01 Dec 2008
After giving a number of small VARs extended credit terms, distributor Bell Micro has fired a broadside at rival Computer 2000’s (C2000) limit accelerator programme.
Bell informed 600 resellers with credit lines between £5,000 and £50,000 that credit terms would be extended from 30 to 45 days if they paid via direct debit. Additionally, VARs using upwards of 30 per cent of their credit lines will have them increased by 25 to 100 per cent.
Director of credit Eddie Pacey told CRN the accounts had a cumulative debt of £2m and extending terms would have minimal financial impact on Bell. He claimed the offer would be more beneficial than incrementally increasing credit lines.
Further reading
“In [C2000 parent] Tech Data’s case, you have to use 75 per cent of the limit every three months to move to the next level. It is impossible for resellers to guarantee they will do that,” he said.
“Accelerator programmes apply undue pressure to continue using those lines, which is akin to encouraging irresponsible borrowing. There is ample trade credit in the channel, particularly for SMEs.”
Pacey revealed he had already received positive responses and hoped to sign about 200 VARs. He aims to double the volumes of business Bell did with those resellers. He also indicated the distributor would be interested in talking to resellers with which it did not currently trade but that were tempted by the offer.
Mark Ancell, head of intelligence at credit reference agency Graydon, applauded Bell’s move. “I think this is extremely beneficial for the channel,” he said. “It is a very proactive measure and Bell should be commended.”
Nick Tiltman, credit director at C2000, said he was “bemused” by the accusations.
“Extended terms slow up cash in the channel and there is enough of that happening anyway,” he said. “Why would you want to exacerbate that? If resellers are not using the credit lines that they already have, I cannot understand Bel l’s reasons for doing this.”
Related articles
In this video find out about the fast-growing Chinese vendor's plans for market domination and how the channel is its route of choice
Find out what gifts Acer has in store for partners for 2012 in this exclusive roundup of its recent conference
CRN's premier networking event is back on 17 May at the Ricoh Arena
Date: Thu 17 May 2012
Channel fighters preparing to square up once more on 24 May
Date: Thu 24 May 2012
The proliferation of endpoint devices within the enterprise has highlighted the shortcomings of one of the traditional approaches to data security
This Forrester report compares the costs and benefits of legacy email and productivity software with Google Apps
A power failure has caused CRN HQ to relocate remotely - I won't be so blase about disaster recovery now
Mark Needham, founder of distributor Widget, argues that John Browett leaves for Apple with Dixons in better shape than when he arrived
|
|
|
Do you agree?
Have your say