D&H Offers Credit Program To Help Small VARs In Government Market

With about $40 billion in spending by the federal government and another $40 billion at the state and local level, there absolutely is room for small-business solution providers, said Anne Brennan, government sales manager for the distributor.

That includes opportunities with law enforcement, hospitals, libraries, water and sewage companies, and the Red Cross, Brennan said. To help the smaller solution providers, D&H has a division dedicated to government business, she said.

Working with government organizations has is advantageous because business is growing and governments always pay in full, said Brennan. The disadvantage is that governments are usually slow in paying, she said.

As a result, one of the programs aimed at the government space is an expansion of D&H's Assignment of Funds credit program. Under that program, D&H will offer solution providers an extension of their credit line on a per-opportunity basis, said Brennan. The solution provider does not accrue additional financing fees while waiting for payment from the government.

The Assignment of Funds program is available only for government contracts, Brennan said. "It allows the smaller reseller to look like a bigger entity to the customer," she said. "There are no issues related to payment."

Solution providers that wish to participate in the credit program will have to fill out a one-page form ahead of making a bid, said Brennan. Credit under the program is extended for that order only, with D&H carrying the paper. "Payment may drag out 30, 60, 90 days," she said. "But we are confident. The government always pays."

D&H is also putting additional resources on its government bid desk, Brennan said, including a government bid hotline for solution providers and help in securing special pricing for government contracts from the manufacturers.