Landis in credit squeeze

Thousands of former Ilion resellers could have difficulty purchasing from Landis after the distributor transferred only 1,500 of the 9,000 credit histories on Ilion's financial system to its own.

Thousands of former Ilion resellers could have difficulty purchasing from Landis after the distributor transferred only 1,500 of the 9,000 credit histories on Ilion's financial system to its own.

Roger Swainson, managing director of Bedford-based reseller Mimic, contacted Computer Reseller News last week. He said he called Landis last Friday to chase an order and was told he no longer had a credit account.

Swainson said he was told Landis will offer credit only to resellers spending a minimum of £5,000 per month.

Swainson added that he was told eight other resellers had called Landis that day and were in the same situation. "What I really object to is not being informed in advance," he said.

Mike Watkins, managing director of Landis, said that if Swainson was told there was a £5,000 minimum he was misinformed. "We're not imposing a minimum level of business. We were looking to increase the credit limits of customers so they can do a decent level of business with us," he said.

Watkins added Landis had cut credit only to those resellers that were yet to make a purchase this year and had credit limits of under £2,000.

"If any reseller has an issue, give me a call," he said.

Swainson said it did not make sense because although Mimic had not bought anything this year, its credit limit with Ilion stood at £10,000 a month.

Swainson said that Landis sales manager Julian Hunt has since contacted him and said the problem was caused by the failure to transfer all trading histories from Ilion's system onto Landis's.

"I was told they'd drawn an arbitrary line under the top 1,500 accounts and not bothered with the rest. Now their policy is to wait and see who complains and deal with resellers on a case-by-case basis," he said.

Swainson said Mimic's history of prompt payment with Ilion had built a credit rating far higher than a credit-rating agency such as Dun & Bradstreet would grant, and he is angry to have lost it.