D&H Hikes VAR Credit, Launches Leasing Program

The credit extension amounts to an influx of millions of dollars in financing for small-business solution providers, said Dan Schwab, vice president of marketing at D&H. The Harrisburg, Pa.-based distributor's terms are net 30 days and credit lines of $10,000 to more than $50,000, he said, adding that the average credit facility is about $25,000.

"This gives our resellers the financial capability to allow them to continue to grow their business," Schwab said in an interview at CMP Media's Solution Provider XChange conference, held this week in New Orleans. "Many of these SMB resellers do not have the same level of audited financials or other assets that companies require to give them lines of credit. It is imperative that D&H invest in its resellers to help them grow their business."

The leasing program will provide a boost for VARs looking to close bigger deals with customers, Schwab said. The leasing deals will provide small-business customers with leasing options for deals from $10,000 to $100,000, whereas many enterprise distributors focus on deals above $100,000, he said.

The leasing program will be administered by NASBA Capital. D&H said resellers will be able to turn around contracts quickly by accessing 24-hour support through D&H's online lease application. The program can be used for software and services as well as equipment and is available to all D&H customers.

John Kistler, president of J&B Technology, a St. Louis-based solution provider, said he aims to double the amount of business J&B does with D&H, now that his credit line has been bumped from $30,000 up to as high as $60,000.

"This is a big productivity booster," Kistler said. "It saves me 30 minutes a day, easy, of trying to hunt down parts from other distributors. The more credit they give me, the more I will buy from them. They are easy to deal with and have a great Web site."

Kistler added that D&H is more sharply focused on small-business resellers than Ingram Micro, Tech Data and Synnex, offering strong pricing and better policies, such as return merchandise authorization with free freight. "No one else in the industry is as flexible as D&H," he said, noting that some other distributors require a certain level of business before they provide better pricing, as well as other terms and conditions.

D&H's increased credit and equipment leasing program reflect rising IT spending by small businesses, Schwab said. "This is all about small businesses selling to other small businesses," he said, adding that small business remains the fastest-growing segment of the IT market.

Over the past three years, D&H has doubled the credit lines of thousands of solution providers. In the past, VARs with increased credit lines from D&H have seen an increase in incremental sales of up to 20 percent, according to the distributor.