News
C2000 injects £25 million credit into channel
Ben Furfie Feb 12 2008, 11:13am
Comments (1)
Move aimed at staving off fears that smaller resellers could find finance hard to get in coming months
C2000 has expanded credit lines to around 1,950 SME resellers who pay on time with an injection of £25 million, to stave off fears that the widely expected credit crunch is affecting their ability to get finance elsewhere.
Speaking about the move, the distributor's credit services director Nick Tiltman (pictured) said that it was the largest cash injection the company had made into the channel for years.
"Six years ago we put in about an extra £80m or £90m, but that was over six months. We have done this very quickly as we are confident in our ability to manage it.
"If resellers are paying on time and growing their business we will grow their credit lines and support them," he added.
Tiltman also claimed that because of the nature of smaller VARs and resellers, they are far more vulnerable to changes in the availability of credit, with many relying on business loans and credit cards.
He cited recent examples of moves by financial institutions to block credit, such as Egg's decision to remove the ability for 160,000 of its customers to use their cards further from February.
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Comments
“Finally someone seeing sense”
Posted by: Paul Garner - Feb 13, 4:03pm
Finally someone is seeing sense. Good to hear comments such as this:-
"If resellers are paying on time and growing their business we will grow their credit lines and support them,".
The credit crunch is affecting small businesses such as ourselves.
This approach is exactly what we need in the channel. Something that I have been telling my suppliers for while now. After they ctopped my credit account, I reapid them by moving business elsewhere. I they won't support us in growing our business, then why should I help them grow theirs?
The channell needs small indi businesses, so they should be supported.
A great move C2000 !!