DCG, local distributors to share financial information

Dubai IT channel stakeholders move to enhance financial transparency and credit security

Tags: Dubai Computer GroupDubai Computer Group (DCG) (www.dcgdubai.com/)Dubai Computer Traders Group
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DCG, local distributors to share financial information Rughwani says the new plan is aimed at tackling the issue of credit security and promoting financial transparency.
By  Manda Banda Published  April 10, 2014

Dharmendra Sawlani, general secretary, DCG, agreed and said screening under the proposed plan with distributors will have to be done on both sides.

"What we have learnt is that education is key when it comes to financially management and prudence. As an association, we owe it to our members to help them understand the important of prudent financial and credit management," he said.

Sawlani added that the DCG has already started holding DCG workshops with members where industry experts come to educate, inform and demystify any misinformation on credit schemes available to them.

1676 days ago
Ranjit S Gurkar

The initiative taken by DCG to educate th trade on matters of Financial Management & Credit.

However, it would be exteremely difficult for the DCG to collect data and share information on potential credit defaults amongst Traders ! No business entity is going to share information that they are facing difficulties in cashflow and hence potential defaults on payment.

It would easier for organizations such as Euler Hermes and others in the group to collect such information from the master distributors in each country, and share it with vendors and master distributors !

To a certain extent , bad credit decisions taken by traders, dealers etc are to blame. It is important to get the final consumer to pay their dues in a timely fashion. This would indeed help to reduce the 'cash to cash ' cycle , and minimize the need for increased working capital!

1676 days ago
HARI K.P.K

There are two types of problematic dealers - 1) who intention is to run away with lot of money 2) temporary problems as money got stuck with some order/customer. The 1st guys will continue to fleece the market irrespective of what you do. the 2nd guys will depend on other distributors to continue their business and will try to balance the payment. Curtailing credit to the 2nd guys will put his business to a standstill and the end result will be same -closing of business and no money for the distis. Distis would like to share their credit exposure to others and dealers on their end wouldn't want to expose their customer list to all distis (especially the defaulting customer). There are no easy solution which DCG will realise slowly.

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