DandH Pours $10M in Credit over Flames of Recession FearsBy Jessica Davis | Print
Calling recession talk a media fabrication, D&H looks to cool the negative chatter with some cold hard cash.
Looking to quell fear of an impending recession, D&H Distributing is extending the credit lines of up to 1,000 of its reseller partners to the tune of up to $10 million.
The company will focus on 700 to 1,000 partners and increase their lines of credit up to double their current amount, said Tony Warfield, director of credit services at D&H.
"We wanted to fly in the face of all this recession and credit crunch talk," he said. "Most of the recession talk is a media fabrication at this point. Most of economic indicators I see indicate everything is OK."
Warfield said D&H will begin sending the credit extension letters to its best partners at the end of March. Those partners include some with credit lines of as little as $5,000. "These extensions will not discriminate by size," he said. "They will be offered across the board."
"Best" partners are measured by credit-worthiness and their ongoing relationship with D&H, according to Warfield. Partners can use their credit lines to buy whatever they want, said Warfield, from inventory to customer financing to ecommerce. "We offer them an open line of credit."
The current credit extension marks the third or fourth time D&H has made such an offer. Typically offered during times of economic worry, the credit extensions are offered for a limited time only, Warfield added.
"We do see nice results from them," Warfield said, but declined to offer specific numbers.