D&H Distributing is increasing the floor planning credit it offers to solution provider customers to help them with supply chain financing as banks pull back SMB credit lines.
D&H Distributing is increasing floor planning credit available to its solution provider customers. Again.
It’s a move that comes at a critical time for some of D&H’s solution provider customers as banks have pulled back their lending, says Mary Campbell, vice president of marketing at D&H. And the pull back by banks has happened regardless of the solution provider’s credit worthiness, says Campbell.
“[Solution providers] have been talking to our credit department and saying that their other lines of credit have dried up,” says Campbell. “They are reaching out to us for credit now.”
The bank lines of credit began to dry up following the credit crisis and subsequent Wall Street meltdown last October that have mired the economy in recession. Since then distributors such as D&H and Tech Data have announced new credit options for their solution provider customers.
Harrisburg, Pa.-based D&H, which caters to SMB solution providers, has now announced plans to expand its credit even further, offering $38 million (£25.8 million) in new credit. D&H previously expanded its credit offering to solution provider customers by $15 million (£10.2 million) in October and by $10 million (£6.8 million) a year ago in March 2008.
“In October we were just at the beginning of the things going on with our economy,” says Mary Campbell, vice president of marketing at D&H. “When we looked at 2009, we looked at what we could do to infuse more life into business.”
With that in mind D&H is increasing the credit it offers to its 4,000 SMB solution provider customers serving end-customers with 100 or fewer employees. Those businesses, which typically enjoy a $5,000 (£3,400) to $10,000 (£6,800) credit line with D&H will on average see their credit limit increase by about $9,500 (£6,400), says Campbell.
Along with the new infusion of credit, D&H announced two other programs for solution providers – a Virtual Event that will offer some of the benefits of attending a trade show but without the cost of travel, and a “Better Business” seminar at D&H’s 2009 trade show events to help solution providers with best practices for the down economy.