Rocom raises credit ceilings

Distributor takes on extra risk to help partners and customers grow despite the downturn

Confident: Rocom director Lee Williams says resellers need support to "grab wallet share"

Voice and data distributor Rocom will run its extended credit scheme until Christmas to gauge demand from its reseller base.

The distributor revealed last week that it was extending its Rocom Leasing offer to allow its resellers to effectively double their credit lines (Channelweb, 15 October).

Speaking to CRN, Rocom Leasing director Lee Williams, said: “We were starting to see resellers with cashflow problems within their business, particularly because customers do not pay as quickly in a downturn. We are hoping that this extra credit will help the resellers grab that extra wallet share.”

Williams said the extra credit was open to all Rocom’s resellers.
“A large majority of customers have hit their credit limit. This means they will not have to spread it. They can get all the credit they need from Rocom.”

He added that the distributor will only continue the scheme if there is enough demand and admitted it is taking a risk.
“There is certainly a degree of risk, but the fact that we are leasing credit facilities means that it is not a 100 per cent risk. We have good customers and good partners and we need to help them grow through what is going to be a difficult time.”

Scott Dobson, managing director of rival distributor VComm said doubling credit lines was always a risky move for a distributor.

“Resellers often have a number of credit lines with different distributors, and Rocom is obviously trying to capture some more of this money. We always provide credit limits based on advice from our credit reference agency because it lessens the risk.”