Tech Data micro mission

Tech Data is planning an extension of its micro-credit channel financing initiative into Bahrain and Saudi Arabia.

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By  Stuart Wilson Published  June 29, 2004

Tech Data is planning an extension of its micro-credit channel financing initiative into Bahrain and Saudi Arabia. The scheme, currently operating in the UAE and Jordan, enables smaller resellers to enjoy the benefits of having a credit line with the distributor. Adnan Al-Falah, managing director at Tech Data, explains: “It means that smaller resellers can have a credit limit with us where they couldn’t before. It also means these companies do not have to keep buying from sub-distributors.” Opening up credit lines to smaller resellers allows Tech Data to increase its customer breadth in the markets covered. The ideal candidate for Tech Data’s extended credit offering would be a small reseller with a solid track record and credible business standing. Aman Sangar, regional marketing and communications manager at Tech Data, explains: “It is not a ‘credit-for-everybody’ scheme — the level of scrutiny remains the same, but the standards applied in terms of documentation and approval criteria are considerably easier, keeping in mind the target segment of resellers. The scheme has been well received and hundreds of resellers are already using the scheme. Others have been upgraded to higher credit levels.” By deepening its relationship with small resellers through improved credit schemes, Tech Data hopes to erode the role of sub-distributors and wholesalers currently serving this sector.

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