C2000 extends credit boosting scheme for SMEs

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C2000 extends credit boosting scheme for SMEs

Microscope contributor

The Credit Elevator programme Computer 2000 created for SME reseller in the past year will be extended into 2010.

The initiative, which was offered to 800 UK dealers increased credit available to them by £10.5m and generated £15m in incremental sales.

One of the biggest "fear factors" held by C2000 late last year was the impact that the credit crunch would exact on the IT channel, said Andy Gass, UK managing director.

"We wondered what was going to happen on the credit side of things, would we be able to keep the credit flowing," he said.

Launched in November last year, Credit Elevator gave smaller reseller the ability to grow their credit lines from £5,000 to £100,000 by agreeing to pay regularly via direct debit and demonstrating that they could turn cash regularly.

Version two of the scheme has just been launched as C2000, like others in the industry does not anticipate dramatic improvements in the limits provided by the underwriters next year.

"We have kept channel credit flowing, that pressure isn't going to go away and we need to remain focused on keeping that up in the year ahead," said Gass.

On top of its own initiatives, C2000 has cuddled up to Euler Hermes, the largest credit insurer worldwide which covers around 70% of all debts in the UK channel, making them a "strategic partner" during the recession.

He said it had come to an arrangement with Euler on certain accounts and in some instances had agreed to accept a reduction in its own indemnity from 90% to 80% to stop the insurer cutting limits and reckoned this approach had worked.

"Despite losing £35m plus cover on our single largest customer, the total of our insured lines has increased year-on-year by about 1%," said Gass.

 


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