C2000 shows faith in VARs with credit plan

Computer 2000 (C2000) has launched a credit accelerator programme that will enable resellers to borrow up to £100,000 credit spread out over a 12-month period.

The broadliner is looking to launch its programme ­ which has not yet been officially named ­ in mid- to late-August.

Nick Tiltman, credit director at C2000, told CRN: “We have had an informal approach to credit over the years. But in these trading conditions it was either a case of tightening belts and restructuring our credit lines, or actually doing something that helps resellers ride through the difficult times and come out the other side more successful.”

Tiltman explained that VARs can either start their credit line on the basic £5,000 or from the point at which their current credit rate is set. If after three months they have used 75 per cent of that credit and paid it back through a direct debit system, the limit will be raised. The incremental rise will continue every three months until the maximum £100,000 has been reached.

Tiltman admitted that C2000 will be taking a risk with the initiative.

“We think the incremental business we will gain in the SME sector will outweigh the risk,” he said. “We are financially in a very strong position and have a good record of credit management.”

He also hinted that other credit schemes to help ease the credit strain are in the pipeline.

Dave Gibbons, sales manager at VAR GenX IT, said: “I think it is a fantastic idea, it will clearly help resellers that are struggling to get credit at the moment.”