The Federal Reserve has raised interest rates by 3% so far in a year that’s not yet over. IT providers must be borrowing less in response, right?
Not so much. TD SYNNEX, at least, is seeing triple-digit growth in lending activity, both to partners and their end users.
“The marketplace really has been positive for us,” says Wayne Peters, vice president of global financial solutions at TD SYNNEX. That sounds strange, he concedes, but makes sense once you look at the situation from a channel pro’s point of view.
“We find that most of our partners are trying to shore up their balance sheet when times get difficult in the market,” he says. In particular, he notes, partners usually look to conserve cash during downturns, and tapping into financing programs and credit lines is a logical way to realize that goal.
TD SYNNEX has no shortage of capital on hand to meet that demand. Having pooled credit resources previously available separately through Tech Data and SYNNEX, the company now has about $18 billion in financing capacity at its disposal just in North America, Peters estimates. The company is pushing to be especially generous with that money to SMB partners, which can have a harder time securing loans in a tight economy.
“We’ve opened up our scoring engines,” Peters says. “We have about an 87.5% approval rating on every small ticket deal that comes through my business.” That’s up about 5% year over year.
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