D&H Adds $38M In Credit To 4,000 VARs

The actual size of the increases will vary by customer and be divided among SMB solution providers serving companies with fewer than 100 employees, according to Dan Schwab, co-president of the Harrisburg, Pa.-based distributor.

"Our resellers absolutely are having a more challenging time in opening lines of credit. Whether it's from a distributor, credit card companies or banks, most businesses' available line of credit today is compressed or at risk of being compressed," Schwab said.

Sierra w/o Wires, a Pittsburgh-based solution provider, has recently had credit lines decreased by multiple lenders, said Bruce Freshwater, CEO of the company.

"Banks are no help. They can't extend anything to anybody. They all say we're trimming back because people are defaulting," Freshwater said. "I said, 'We pay our bills on time.' They said, 'It's not you, it's everybody.'"

Schwab said Freshwater's experience is a stark reminder that many VARs are experiencing a credit crunch.

"There is still business being transacted. We have to make sure our reseller partners have the financial wherewithal to continue to drive those technologies and complete those transactions," he said.

D&H also plans to detail two more VAR programs this week: virtual events where resellers can chat with vendors and their peers, and "Better Business" seminars, which are aimed at helping solution providers improve the way they run their companies.

"They [the programs] came from feedback from customers who are looking for more regular and business-focused topics. We're trying to add to our technology and vendor-focused seminars and trainings," Schwab said. "[Last] week we did a [virtual] event on outstanding customer service, your secret weapon during the economic downturn."