IT and Business Insights for SMB Solution Providers

D&H Grants Over $21 Million in Supplemental End-of-Year Financing

Offered to a hand-picked set of nearly 600 partners with high growth potential, the fresh credit is designed to drive sales in strategic markets like esports, cloud computing, and Pro AV, and to help traditional VARs fund the transition into managed services. By Rich Freeman

D&H has extended over $21.5 million in supplemental credit to a hand-picked set of partners with strong growth potential.

The financing program, which is the latest manifestation of an ongoing “credit infusion” initiative first launched during the recession of 2008, impacts close to 600 of the distributor’s VAR and retail partners, raising their credit limit up to twice its current level.

“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, in a press statement. “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.”

Partners were selected for inclusion in the end-of-year credit wave based partly on their likelihood to drive sales in strategic focus areas for D&H, such as esports, K-12 education, cloud computing, and Pro AV. The latter two markets are especially high priorities at present for the distributor, which rolled out an all-new cloud marketplace with built-in support for solutions and managed services in June and hired a new director to lead its Pro AV business in February.

VARs granted new credit can also use the funds to underwrite the early months of a transition to a managed services business model, says D&H, when recurring revenue is limited and cash flow tight. Ingram Micro announced a financing program aimed at helping partners tackle that same problem last week.

According to D&H, which recently moved into a new 50-acre headquarters complex in Lower Paxton Township, Pa., after 67 years in its previous facility, credit extensions rolled out via the credit infusion program have totaled $168 million in the last 11 years.

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