Resellers take full advantage of Tech Data’s additional £150 million credit investment

By Simon Meredith | 13th July 2016

Distributor sees exceptional uptake of new facilities as resellers focus on driving SMB sales growth and making the most of the peak summertime buying period in education

Basingstoke, 13 July 2016 – Tech Data UK has seen exceptional uptake by resellers of the additional credit lines it provided to more than 4,000 of its customers a month ago, with customers taking advantage of the extra flexibility to drive sales and business growth.

The company grew its SMB sales by 20 percent year-on-year in June and believes that growth has been boosted significantly as a result of the increased credit lines. Resellers have also been have been making use of the additional facilities to finance sales to the education sector, which is in its peak purchasing period over the summer holiday period.

In mid-June Tech Data made additional credit totalling more than £150 million available to its customers. One company that has benefited is Blackburn-based reseller, Nybble. Ram Gupta, Managing Director of the company, said the additional credit facilities had made a real difference. “It is a very positive move and really helped us. Having the extra credit give us much more flexibility and is a real enabler for our business. It means we can go into customers with confidence, knowing that we can finance the business and have been able to accept orders that we otherwise might have had to turn down.”

Only a few days after being given the extended credit facility, Nybble took an order for 40 laptops and two charging trolleys from a local primary school worth more than £45,000.  Ram Gupta says that the extra credit and extended payment period made the deal financially viable. The company was also discussing the replacement of servers with the school.

Vendors have also been pleased with the results. Andy Bass, SMB and Channel Director from the UK and Ireland at Lenovo, stated: “This is a really great initiative that has helped many Lenovo resellers to do more business right away – not only in education but also in the commercial space. We applaud Tech Data for taking this bold step and making such a positive commitment to supporting partner growth.”

Ram Gupta said that the extended facilities are also helping Nybble to manage cashflow. “At busy times of the year you can very quickly find yourself stretched, especially if you have been increasing your spending to finance new business and payments from customers do not come in as expected. Having the extra credit just makes it easier for us to manage that and plan ahead, so it’s been positive for us in a number of ways”, he added.

In his view, Tech Data has set a benchmark in the UK channel. “I believe Tech Data has sent a clear message with this initiative – namely that they understand the needs of smaller businesses and that they are ‘the distributor of choice’ for SMB resellers. What they have done is a game changer.”

Cathi Low, Director of SMB and Public Sector at Tech Data, said that uptake from resellers of the credit lines has been exceptional. “We’ve been thrilled that our customers have responded so positively. A very large proportion of them have made use of the additional credit available. It’s clearly making it easier for them to do business and fuelling significant growth for the channel. It’s an excellent outcome.”

In addition, the company is providing extended payment terms to resellers targeting the education sector with audiovisual solutions, so they can take full advantage of opportunities that will emerge as schools upgrade their classrooms and infrastructure during the summer holidays.

The extra credit has been applied to the accounts of frequent customers automatically, giving them the flexibility to do more business and drive growth with both existing and new customers. The additional credit lines will also ensure that resellers who are focused on the education market, which is now entering its peak summer buying phase, are able to make the most of their opportunities.

The extended invoice payment terms are designed to help education-focused partners, and in particular those selling audiovisual equipment, such as large format interactive displays, digital signage and collaboration solutions, to manage the longer payment cycles that are typical in the public sector. In July, where 50 percent or more of verified orders from education are made up of products sold by Maverick, Tech Data’s specialist audiovisual business, payment terms can be extended till September on application.

The additional credit enables resellers to consolidate all their ordering through Tech Data, simplifying processes and making it easier to do business. It has demonstrated its commitment to making it easy for customers to do business with a number of strategic investments this year. It has launched a new Marketing Portal and Web Store, and introduced Category Stores sections on is InTouch website.

As well as these extended credit facilities, Tech Data provides a range of services that build value for resellers selling to the education sector, including a dedicated Public Sector microsite, a virtual classroom that enables resellers to explore the different options and technologies available to customers (a white-label version of this is also available), special education pricing and discounts from over 30 vendors. It runs regular Tendering Workshops that enable resellers to learn how to navigate the procurement process and develop their education business.

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About Tech Data
Tech Data Corporation is one of the world’s largest wholesale distributors of technology products, services and solutions. Its advanced logistics capabilities and value added services enable 105,000 resellers to efficiently and cost effectively support the diverse technology needs of end users in more than 100 countries. Tech Data generated $26.4 billion in net sales for the fiscal year ended January 31, 2016. It is ranked No. 107 on the Fortune 500® and one of Fortune’s “World’s Most Admired Companies.”  To learn more, visit, or follow us on Facebook and Twitter.

For further information contact:
Sara Gemmell
Marketing Services Director
Tel: 0871 880 3000
Twitter: @techdatauk

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