Posts tagged ‘Tim Lowe’

Where Solution Providers Can Turn for Financing

by Tim Lowe – Director, Consulting

Channel financing issues can be at the core of a solution provider’s mobility or the reason why you keep hitting roadblocks. For solution providers in today’s economic environment, credit is no longer readily available. Several credit facilities that were options five years ago no longer exist today. Finding sources of short-term financing for large deals in particular is more challenging and more time-consuming than it was in the past.

But credit for solution providers is just as important in an up economy as in a down economy. My experience has been that if you don’t plan for success and line up avenues of credit before you need them, then you will limit your ability to prosper in any economy. If you plan on growing, it’s better to solve these issues before you need the credit.

So where can solution providers turn for financing? The fact is that vendors and distributors are places where solution providers can seek financing for their own businesses.

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December 7, 2011 at 6:11 pm Leave a comment

Dell Distribution Agreement Shock Waves

By Tim Lowe

Finally some news other than what’s going on in the economy!

DELL’s distribution agreement announcement is sending shock waves throughout the industry larger than rumors of IBM-SUN merger discussions. The availability of a subset of the DELL product line through broad line distributors Ingram Micro and Tech Data has ramifications for every value added reseller in the channel. The worst kept secret in the industry for years has been the percentage of DELL desktop and laptop business that has either been sold or influenced by the channel. I’ve never seen an accurate estimate of how many Dell desktops have been “sold” by the channel through the influence of a solution provider either for a configuration fee or simply as part of the overall solution package. And of course Dell has used broad line distributors for years to provide the logistics of their third party options. However the public announcement of a formal relationship between DELL and Ingram Micro/Tech Data legitimizes the entrance of Dell into the channel supply chain. (more…)

March 30, 2009 at 3:12 am Leave a comment

Partner Credit Crunch

By Tim Lowe

Every day the news is full of information regarding the worldwide financial and credit crisis.  While the economic “downturn” is affecting every aspect of IT business from overall sales to an increased emphasis on green computing, the reduction of available credit is a fundamental business change that has the potential to drastically change the IT channel model. While it’s not as sexy as a headline describing a looming depression, if partners are unable to buy products, they can’t sell them!

We are already seeing a drastic reduction in the available credit, with IBM Global Financing terminating a program that provided multivendor reseller financing. While distributors claim to not have reduced their lines of available credit, as the economy takes its toll on VARs, we will definitely see distributors increase their vigilance in reviewing open lines of credit. And the smallest VARs that rely on credit card and home equity financing have seen those lines  arbitrarily reduced or terminated with no review of the VAR business financials. This is not only affecting smaller VARs., we hear reports of $100M+ partners reviewing their available credit and looking for creative financing. The Channel Insider 2009 Market Pulse Report, a biannual study of economic activity and key performance indicators of the North America technology reseller and services channel, indicates  over half of partners surveyed are concerned with tightening credit and payment terms.
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March 19, 2009 at 3:19 am Leave a comment


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