VARs, retailers get increased credit lines from distributor to grow businesses
Almost 600 partners of D&H Distributing are getting a financial boost from the giant distributor to help them grow their businesses through increased credit lines.
The Lowdown: The Harrisburg, Pennsylvania-based company this week announced that in a financial services initiative totaling more than $21.5 million, it’s raising the credit limits to VARs and retail partners that have shown substantial growth potential to both spur customer adoption of next-generation solutions and increase D&H’s business in the channel.
The Details: In particular, D&H – which works with VARs and MSPs to sell technology into the SMB and consumer markets – is hoping the extensions will help partners grow their businesses in areas that are increasingly important to the distributor, including cloud, audio-visual, collaboration, K-12 education, client devices, and emerging protocols like Wi-Fi 6.
The company also is expecting that the move will help partners continue their transition to a monthly billing cycle to help them embrace a managed service annuity model, a crucial step for channel players as the IT world moves to a more as-a-service environment.
Background: Such credit line increases to partners aren’t new to D&H. The company has offered extensions totaling $168 million since launching a credit increase in 2008 during the recession. With more buying power, partners can run larger projects, expand into new markets, and get more business, all of which is good for D&H.
The Buzz: “D&H is dedicated to supporting our partners as they begin to show great potential for expansion. We take action to help facilitate that growth, increasing their financial flexibility through credit extensions. This is in addition to other available financing options such as flooring programs or joint purchase orders for sales in the federal and local government markets,” said Tony Warfield, vice president of credit and financial services at D&H. “The enhancement of our credit offerings has proven to be a shrewd investment in our partner community, one that drives successful business and fosters loyalty. We’re excited to enable these partners, helping them to thrive as the market evolves toward an ‘as-a-service’ economy.”