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10 Oct 2008
DNS Arrow is using its balance sheet as a weapon to win market share by offering top resellers extended payment terms of up to 120 days.
The distributor is targeting £10m in new business through its Channel Financing programme, which is designed to ease the cash concerns of large and stable resellers.
Targeted at resellers with at least £30m turnover, the scheme is being backed
by IT financier IBM Global Financing.
Grahame Benson, chief financial officer of DNS Arrow, said the firm had poached
several new accounts from rivals since the programme went live last month.
Further reading
“I would like to think this will generate £10m in incremental opportunities
over the next year,” he said.
Nick Tiltman, director of credit at rival Computer 2000, questioned whether any
market share gains would be sustainable.
“We are not going to try to match this because we are still seeing growth of between five and 10 per cent,” he added.
An industry analyst, who wished to remain anonymous, said: “People are getting very creative on how they are helping resellers win business and this will make it more difficult for those who cannot afford to compete at the same level.”
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