Tech Data UK has made £150m extra credit available to more than 4,000 resellers operating in the SMB and education sectors.
The "buy now pay September" credit has been released ahead of an increase in public sector spending Tech Data is anticipating this summer, driven by the education market.
Andy Dow, group marketing director at Tech Data, told CRN that the credit is a "significant increase" on what is already offered to resellers in the SMB and education sectors.
Dow said: "We believe that there is more scope for growth in SMB end users and in order fuel that growth we've offered this credit.
"The resellers who address the SMB market, a lot of these tend to be smaller resellers and credit is always something they have to watch closely.
"We wanted to make sure that over the summer period they had the absolute maximum opportunity to drive growth in their business and to do that they need the credit line to enable them to go and win business."
Tech Data wrote to resellers this week making them aware that the extra credit was available for them to use at any time.
"They don't have to do anything - it's there. Now they just have to use it," Dow said.
Tech Data allocated the funds to resellers who have been consistent with their payments and are being proactive in the market, but would also benefit from additional funding, Dow explained.
More specifically, Tech Data has said that, during June and July, where 50 per cent or more of verified orders from education are made up of products sold by its Maverick arm, payment terms can be extended until September on application. Steljes, an audio-visual distributor which competed with Maverick, went into administration last month.
Dow also encouraged resellers who have not been contacted to get in touch with Tech Data about being part of the programme.
Dave Stevinson, managing director of rival distributor Entatech, said the initiative is a "strategically wise use of capital, one which the channel will appreciate over the Summer season".
"This is not an area where Entatech will imitate, however we are always looking to support our customers. Our current focused point of differentiation is around being easy to do business with," he said.
CEO Graeme Watt admits the trading climate is becoming a little more uncertain as he and CFO Graham Charlton reflect on the reseller's £1bn year
Security vendor appoints Infinigate as part of strategy to grow channel business
As the trade war between the US and China ramps up, Marian McHugh investigates what impact this will have on UK prices and how partners are adapting to higher costs
CRN quizzes Avaya CEO Jim Chirico on the firm's progress after exiting Chapter 11 earlier this year, and listing on the stock exchange