Distributors to the rescue

Despite the banks' unwillingness to lend to any businesses, distributors are doing their best to keep cash flowing, writes Sara Yirrell

Distributors to the rescueAnother week goes by and another bank scrounges more money from the government or some failed banking executive is given another bonus as thanks for the sterling job they have done over the past year.

Yet as we all know, banks are still not lending to anyone and thousands of firms are struggling to survive as the cash flow starts to dry up.

Employees in all areas of business are worrying about their jobs as they see their company struggling to keep its head above water. Rather than throwing a lifebelt, banks seem to be going out of their way to hold firms’ heads under.

Luckily for the channel, distribution is on hand to help resellers through the tough times, and last week saw two more initiatives from two players at different ends of the spectrum.

Broadline giant Ingram is evaluating its SME partners in the EMEA region and deciding whether to switch them from a pre-payment system to a credit-line-style relationship, giving hundreds of firms more options for supplying customers.

Similarly, specialist player Cohort Technology has partnered with ShoreTel Finance to offer its VARs and their customers flexible payment options to ensure the orders keep coming in.

Having an understanding of customer needs is very important in business and it seems all the distributors have that spot on.

It is a pity that the banks and other financial institutions cannot take a leaf out of their book and get their priorities right.