The Good News, Bad News on Credit

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Guess what? Customers are looking to buy again. In some cases they are looking to spend a lot of money. That’s according to the Heartland Technology Group PeerPower blog. The most recent entry says that there’s been an increase in phone calls from frantic members who need advice about getting increases in credit limits with distribution or a financial institution in order to do a big deal.

Customers are spending money! But if you don’t have that credit facility in place, you run the chance of losing that big deal that you’ve been waiting for all through 2009. So if you haven’t already, now is the time to look at your credit needs, get your ship in order and make sure you are ready for that big deal when it comes through your door.

The HTG Peer Power blog has some good advice. It talks about lenders being much more careful about extending credit. If you are looking to get your limits raised, be prepared to be asked to provide more documentation than in previous years. Potential lenders will be looking at the business’s equity and its past performance – that means profit every year. HTG also notes that lenders will “likely require a personal signature to get credit. It’s not unfair or unusual.”

And HP and Cisco both, as well as health care IT vendor McKesson, have just announced zero-percent financing deals. Zero percent may very well be enough to push even the most reluctant customer over the edge to do a deal, VARs are saying.

https://www.channelinsider.com/news-and-trends/hp-targets-smbs-with-zero-percent-financing// https://www.channelinsider.com/news-and-trends/cisco-unveils-three-year-zero-percent-financing//

So get your credit house in order today. Because when that big deal finally comes through, you don’t want to lose it to a competitor who already has his credit offers in place.