D&H Distributing is attempting to put more buying power into the hands of its SMB VARs with a suite of credit and finance services designed to extend credit lines and spread the credit load over greater time.
"D&H Flex"—Flex Credit and Flex Flooring plans for VARs and Flex Leasing for end users—are designed to get both groups spending, D&H executives said.
"Additional financial muscle can help our customers grow their businesses, and it will even attract new customers," said Joseph Chaudoin, director of credit and financial services at D&H in a statement. "But on a bigger scale, this level of newfound flexibility is the kind of force that helps fuel the market in general."
D&H has yet to set a start date for the Flex programs.
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The Flex Leasing Program, administered by De Lage Landen, of the Netherlands, a third-party lender, allows VARs to take advantage of more substantial business opportunities, by offering end users one-, two- and three-year leasing plans with monthly installments paid to DLL. The plan covers hardware, software and service costs, allowing resellers to bundle an entire solution into a single end-user lease proposal. In addition, participants will receive a commission on their leasing sales.
"Although credit has always been a big part of D&H's value proposition, this is probably the most exceptional lineup of credit services we've been able to extend," Chaudoin said. "They are powerful enough to allow an independent VAR, even one who's just starting out, to get on the phone and purchase significant equipment within the course of an hour, on excellent terms."
The Flex Credit Account Program allows 45-day interest-free payment terms, up from 25 days, and also provides cash-back on purchases, similar to commercial lender programs, according to D&H's terms. D&H will increase credit lines up to $25,000 on a case-by-case basis.
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The Harrisburg, Pa.-based distributor estimates up to 3,000 customers, representing purchases of approximately $10 million per month, will be eligible to migrate to the plan, and nearly 10 percent of those purchases could be processed through the new Flex Credit program during its launch period.
The terms of the Flex Flooring Plan, also administered by DLL, offers a more attractive 40-day payment term, extended payment options and more favorable interest rates, both companies said.
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