Countering the squeeze on credit in the channel, specialist distributor Midwich is offering its resellers a financing lifeline with the launch of its MFinance scheme.
Midwich, which distributes vendors such as Acer, Brother, Kodak, Samsung, Oki and Xerox, says the scheme works on two fronts.
MFinance offers resellers the opportunity to outsource invoicing and payment collection, but retain the relationship with their customers.
The scheme also offers online leasing options backed by CF Asset Finance, part of the HBOS group.
Nick Culley, product marketing director at Midwich, said: "There has been talk about pressure on credit limits in the channel for a long time, and some major insurers are removing cover. We are finding new ways of supporting resellers.
"They can use the scheme to secure more business, allowing them to free up their own credit lines for other transactions and reduce their overall credit risk."
The scheme has a minimum three-year lease period, but some products go up to five years, Culley said. He added that customers also have the option of acquiring the equipment at the end of the lease.
However, some bigger leasing firms believe customers would be better off using independent leasing providers.
Sean Williams, chief executive of leasing and rental company Syscap, said: "We welcome finance initiatives from the major players because it shows how important financing to the supplier and end-user customer is.
"But Syscap and others' experience is that it is difficult to make a success of distributor schemes because of the removed nature of the distributor to the end-user customer."
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