Sun distributor offers to ease financing
GE Access launches financing scheme for resellers
Sun distributor GE Access has launched its first financing scheme for resellers, and claimed it will take the pain out of credit issues for partners.
The OpenLink scheme reduces resellers' credit risk and improves cash flow, according to Nigel Fitton, services sales manager at GE Access.
"Resellers receive their commission in 10 days, while retaining the sales relationship, and customers get 60 to 90 days interest-free credit," he said.
Resellers can use the service either for individual customers or for their whole customer base and the distributor takes care of product financing, billing and collections.
"Partners can make the deal happen faster due to better payment terms, and resellers don't have the worry of assuming the credit risk," Fitton added.
"It also gives them the chance to focus on their core business, which is selling to customers, rather than worrying about the finance side of a deal."
However, Simon Welch, marketing manager at rival distributor and Sun Channel Development Partner Clarity, said the scheme was standard practice.
"This is purely about assigning the debt when a VAR can't get a credit limit with a distributor and it is nothing new," he said.
"It can sometimes be perceived as a distributor trying to establish a relationship with the end-user, which could be seen by a VAR as spurious. We always try to be one step removed from the end-user."
But Jason Edge, managing director of solution provider Phoebus Solutions, welcomed the scheme.
"If you are a small company like us, a scheme that takes some of the credit issues away and makes it easier for us to get the sale is extremely welcome," he said.