Credit to the vendors

Despite the tough economic times more and more vendors are ploughing credit into the channel, writes Sara Yirrell

As times get tougher it is refreshing to see that an increasing number of vendors are really supporting their partners with credit incentives.

Already we have had giants such as HP and IBM unlocking extra cash for resellers and it seems a host of other vendors are following suit.

Just this week Avaya announced it was turning its credit system on its head ­ paying resellers and distributors upfront for work, rather than after the contracts have been completed. This gives channel firms much-needed flexibility and the ability to pursue new contracts and keep the job pipeline loaded.

Cisco is another vendor that has unveiled new financing and partner rebates this week ­ again a welcome initiative in this challenging time.

Distributors have always been hot on the subject of credit, and they are all fighting to keep the cash flowing.

So it is a shame that despite everyone trying really hard, the credit insurers are still causing waves of uncertainty in the market.

I have spoken at length with the credit insurers and we have even filmed an interview on CRN TV, so I understand they have their reasons and are just trying to survive. But I still feel that they should stick their necks out just a little bit more.

However, if rumours are correct, the government could soon be stepping into the credit arena. I will be glued to this week’s Budget ­ as I’m sure you will be too.

Sara Yirrell is editor of CRN -­ [email protected]