Bell offers SME VARs increased credit terms

Pacey: Not an advocate of limit accelerator programmes

Distributor Bell Micro is offering a helping hand to smaller VARs by giving them extended credit terms and increased credit lines.

The company is sending a letter to several hundred selected SMB resellers next week informing them credit terms are to be extended from 30 to 45 days if they agree to pay by Direct Debit. The letter also states that, owing to the twice a month frequency with which Direct Debit payments may be taken in some cases, VARs could end up benefiting from a 45 to 52 day payment term in which to pay the distributor. To take advantage of the offer, Bell Micro requires a completed Direct Debit mandate.

Some resellers being offered the extended credit terms will also enjoy increased credit lines with the distributor. VARs utilising 100 per cent or more of their credit line will have it doubled, while those using between 50 and 75 per cent will be given a 75 per cent increase. VARs utilising 40 to 50 per cent will be given a 50 per cent increase and those using between 30 and 40 per cent will have their credit line raised by a quarter.

In the letter, director of credit Eddie Pacey tells recipients: "The reality, by and large, is that trade credit in the channel is more than ample. What we offer you today carries greater weight and, in today’s climate, a tangible benefit to your business."

Pacey told CRN: “This is a selective chosen band of SME clients with credit lines of up to £50,000 currently. I am not an advocate of limit accelerator programmes as these frequently place undue strain on the reseller to utilise a specified percentage in order to continue the upward climb. This is an effort to assist some of our SME clients in managing their cash a little easier”