Bell reinvigorates SME credit lines

Pacey: we have reworked in excess of £1m revenue

Bell Micro has hailed the success of an initiative to revitalise inactive SME credit lines that has generated more than £1m in additional revenue.

Credit lines unused for six months are subject to review. About a year ago, Bell began sending monthly reminders to selected firms with soon-to-expire lines.

Further reminders are sent a month before the six-month cut off and both letters are followed up by calls from sales and business development staff.

Eddie Pacey, director of credit services at Bell, explained that SME buyers often have a scattergun approach to which suppliers they use.

“In an industry where buyers move from one company to another and where vendor product and other requirements shift, it is not uncommon to see business activity drift away at some point,” he said.

“Database management and maximising the opportunity within it is crucial to business. A system reminding our clients they had unused credit ­- at a time when credit was perceived to be in short supply -­ made sense.”

Pacey added that the initiative has widened credit availability to a raft of smaller VARs and had allowed Bell to develop or strengthen relationships with them.

“We have reworked in excess of £1m revenue, with SME businesses responding very positively,” said Pacey. “This shows how effective credit management can be in addressing areas of business development through optimised use of client
information and database management.”

Nitin Joshi, founder of ChannelMoney, claimed an average of 20 per cent of accounts were inactive at most distributors.

“Twenty years ago there was demarcation of channel businesses, but now credit managers are really commercial managers,” he added. “Channel businesses talk about a lack of credit, but it is out there.”