Channel Conference: Financing schemes and how to broaden credit access to partners

Channel leaders offer solutions on how to build business credibility in the reseller channel

Tags: Dell CorporationDubai Computer GroupDubai Computer Group (DCG) ( Middle East ( Gulf
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Channel Conference: Financing schemes and how to broaden credit access to partners A team of expert panelists debate channel financing schemes and why all stakeholders have a role to play in making credit more accessible to reseller partners.
By  Manda Banda Published  May 14, 2014

IT leaders from the regional channel have again reiterated calls on how stakeholders can address the thorny issue of channel financing schemes and credit insurance.

The discussion, which took place at the recently held Channel Middle East Conference at Grosvenor House Dubai Marina, saw more than 200 channel stakeholders meet to discuss a number of supply-chain challenges that tackled a range of topics through the keynote address, presentations and expert panel sessions.

Samer Karawi, managing partner at Galal & Karawi Consulting, who moderated the panel discussion on ‘Channel Financing Schemes' opened the debate by wanting to find out how difficult it is to finance IT projects in the Middle East region.

Shailendra Rughwani, president of the Dubai Computer Group (DCG), said the matter of channel financing and credit insurance is and has been a thorny issue in the regional channel for some time now.

Rughwani said five years ago, at the peak of the global financial meltdown, the channel witnessed a lot of resellers running away from the market with huge unpaid debts. He added that the scenario contributed to banks, financial lending institutions and credit insurers to start viewing the IT industry as a high risk sector to finance any big projects.

1744 days ago

As is with any Channel meeting, it has ended with no solution. whether you like it or not, the Big distributors are primarily responsible for spoiling the market. They fight each other and keep revising the price every hour and for every deal. The next level of "whole sale distributors" play to their tune and start offering the price to the channel as well as to end users. It is these whole sale distis who end up loosing most of the money. The last level of channel who ultimately sell to the end user sell their products at margins with no consistency and have knowledge about GP/NP etc.

So what is the solution? Only 1 solution which will be very difficult to implement. STOP ALL CREDIT.

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