C2000 targets CHS dealers

Computer 2000 is to offer rapid credit assessment facilities in the battle to win reseller customers following the collapse of CHS.

Computer 2000 is to offer rapid credit assessment facilities in the battle to win reseller customers following the collapse of CHS.

The distributor is to extend offers of credit to all resellers that have been buying from CHS and are now struggling due to reduced purchasing power.

The move is aimed at attracting smaller dealers that were heavily reliant on the distributor.

Julian Klein, sales director at C2000, said: "Most of the larger resellers already have credit lines with other distributors and dealt less with CHS in recent weeks. But smaller resellers continued to use CHS. There is no question that the collapse of CHS has left a gaping hole in the market in terms of product availability and credit lines."

Tony Taylor, financial director at C2000, added: "We are working with our credit insurance underwriters to ensure they are able to support us immediately in writing additional credit into the channel."

The move, however, could leave C2000 financially vulnerable, and other distributors are reluctant to follow its lead.

Alex Tatham, commercial director at Ideal Hardware, said: "The channel has to find about £400 million of credit from somewhere, and not all of it will be secured."

Although Ideal said it would help CHS customers with any warranty problems, especially for IBM products, it won't introduce fast-track credit assessments.

Both C2000 and Ideal have reported significant increases in business following the closure of CHS. Ideal has also gained from Computacenter's acquisition of CHS subsidiary, Metrologie.

Tatham said: "Many resellers don't want to buy their products from Computacenter, so business has drifted our way."