Broadline distributor Enta Technologies is hoping to gather more of the channel’s “low-hanging fruit” after improving credit terms on its store-card for small and start-up resellers.
More than 250 resellers have joined Enta’s Account Card programme, which is run by third-party finance house Certegy, since it launched in October 2005.
But the distributor is hoping more will come on board after raising the number of days of interest-free credit available on the card from 45 to 60 days.
Jon Atherton, group vice president at Enta, which works with Microsoft, D-Link and Belkin, said: “These firms are normally very small. They rent premises and find it difficult to get credit. We’ve negotiated better terms with the finance house, which will free up even more cash for them to invest and grow.”
Atherton claimed start-ups and sole traders are refused credit by international competitors such as Ingram Micro and Computer 2000 ­ the latter of which recently made another £4m in credit available to smaller VARs.
James Partner, of sole trader Oasis Computers, said the card allowed him to side-step a 38 pence charge per transaction when paying by credit card, adding that it was very difficult to obtain credit elsewhere.
But he said: “It would be nice if the Enta card could be used to pay for all the firm’s services, including for Entanet [Enta’s ISP arm].”
Matthew Stokes, product manager at rival broadliner Blue Solutions, told CRN: “We have always given smaller resellers credit facilities. It is a shame that it has taken this long for other distributors to recognise this market.”
C2000 gives credit to smaller VARs