VARs are given access to an extra £14m credit a month as distributor invests in channel finance

Bell Microproducts is offering an extra £14m worth of credit a month to about 1,000 of its SME resellers in the UK.

The distributor told CRN the UK SME sector is still a lucrative area, and the move – which covers all product areas – will give its reseller base more flexibility.

Eddie Pacey, director of credit at Bell, said: “We engaged in a review of our SME credit facilities across a large number of actively trading accounts and decided to create extra credit lines.”

Pacey said the move included a “general phased uplift” of lines up to £50,000 and a “more selective uplift” to lines up to £200,000. Resellers with credit limits of between £7,500 and £20,000 will see those lines double.

“The SME sector is one that continues to buck the trend of suppressed business activity,” he said. “It showed signs of continued growth. Distribution must provide the impetus and financing to this sector that will enable it to function and grow.

“Our aim is to press forward with our commitment to channel finance, not only supporting SME clients that do business with us, but encouraging those that don’t consider Bell as a first-choice supplier.”

He added that the move will not compromise Bell’s current insurance position. “We are not acting irresponsibly and don’t feel that this current uplift is negating our responsibility to insurers,” Pacey said.

Sue Richards, managing director of VAR EBM, said: “We need the whole package. There is no point promising credit if items are not in stock and the support is not there. If we get the support and backup as well as the credit facilities, then it is a good move.” Robert May, managing director of VAR Ramsac, said: “In this market, cash flow is crippling SMEs. When there are casualties in the channel, distributors typically get more nervous. This announcement makes a welcome change.”

Nitin Joshi, partner at account-ancy firm Vantis, said: “This extension of channel credit is just what the channel needs. The move encourages responsibility and unleashes the inherent sales potential in existing customers while encouraging others to enter the Bell family.”