Credit Flex Channel Focus March 2010 Edward Pacey FICM FACP Director Credit Services Bell Microproducts
Event recognition <ul><li>World Economy -  green shoots, strong in places, fragile in others </li></ul><ul><li>UK Recessio...
<ul><li>Banks </li></ul><ul><li>Manufacturers </li></ul><ul><li>Distributors </li></ul><ul><li>Resellers </li></ul><ul><li...
Banks <ul><li>Low interest rates – but not if you borrow from Banks </li></ul><ul><li>Enterprise Finance Guarantee (EFG) h...
Manufacturer  <ul><li>Need to support the transaction all the way down – it’s a customer engagement model not buy-sell </l...
Distributor  <ul><li>Manage risk more efficiently </li></ul><ul><li>Talk to Resellers more often </li></ul><ul><li>Focus o...
Reseller  <ul><li>Select Distributor partners more carefully </li></ul><ul><li>Embrace a model that supplies finance optio...
Finance leasing <ul><li>Aligns cost of solution with benefits </li></ul><ul><li>Improves cash flow and liquidity </li></ul...
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Channel Focus March 2010

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Presentation to largely manufacturer audience on channel needs

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Channel Focus March 2010

  1. 1. Credit Flex Channel Focus March 2010 Edward Pacey FICM FACP Director Credit Services Bell Microproducts
  2. 2. Event recognition <ul><li>World Economy - green shoots, strong in places, fragile in others </li></ul><ul><li>UK Recession - deeper than expected – looming election </li></ul><ul><li>Credit Crunch – hurt the big boys </li></ul><ul><li>Confidence - returning, but very slowly </li></ul><ul><li>Credit Insurance – fell off a cliff, shattered, but re-building </li></ul><ul><li>Insolvency - expected to rise significantly in 2010 </li></ul><ul><li>Financial sector meltdown – still turbulent </li></ul><ul><li>Consolidation </li></ul><ul><li>Project spend deferral/cancellation </li></ul><ul><li>Cloud computing, Virtualisation, SaaS, Annuity billing – new funding challenges </li></ul>
  3. 3. <ul><li>Banks </li></ul><ul><li>Manufacturers </li></ul><ul><li>Distributors </li></ul><ul><li>Resellers </li></ul><ul><li>Finance Lease </li></ul>Channel Participants
  4. 4. Banks <ul><li>Low interest rates – but not if you borrow from Banks </li></ul><ul><li>Enterprise Finance Guarantee (EFG) has not delivered </li></ul><ul><li>Unwillingness to lend despite efforts to suggest otherwise </li></ul><ul><li>Radical review of investment portfolios </li></ul><ul><li>Greater Security and tighter more rigorous lending criteria </li></ul><ul><li>In “recovery and protective” mode </li></ul><ul><li>Allow suppliers some security </li></ul><ul><li>Bad press </li></ul>
  5. 5. Manufacturer <ul><li>Need to support the transaction all the way down – it’s a customer engagement model not buy-sell </li></ul><ul><li>Market and actively sell own brand finance and leasing options </li></ul><ul><li>Re-assess quarter-end target culture (channel stuffing) </li></ul><ul><li>Accredit/train/reward Resellers in provision of vendor financing </li></ul><ul><li>Do not desert traditional markets with financial solutions </li></ul><ul><li>Fairer pricing/less rebates </li></ul><ul><li>Consider extended terms to Distribution </li></ul>
  6. 6. Distributor <ul><li>Manage risk more efficiently </li></ul><ul><li>Talk to Resellers more often </li></ul><ul><li>Focus of provision of real value-add and client/supplier relationships </li></ul><ul><li>Measured control of credit line review and term negotiation </li></ul><ul><li>Provide a full range of credit and financial support programs </li></ul><ul><li>Accommodate and adjust principles and offer flexibility where required or merited </li></ul><ul><li>Corporate recovery and financial assistance must be considered a value-add proposition, not an inevitable cessation of business </li></ul><ul><li>You’re a funder – “think” like a bank but don’t become one </li></ul><ul><li>Now is not the time for trench warfare or siege mentality </li></ul><ul><li>Support credit lines to those who subscribe to CreditPal™ </li></ul>
  7. 7. Reseller <ul><li>Select Distributor partners more carefully </li></ul><ul><li>Embrace a model that supplies finance options – this should include Finance, Operating & Software Leasing </li></ul><ul><li>Work with supplier credit and financial service offerings </li></ul><ul><li>Provide security where requested </li></ul><ul><li>Focus on cash conversion cycles and return on working capital </li></ul><ul><li>Review banking and funding arrangements if providers attitude and support is restrictive or inflexible </li></ul><ul><li>Involve partners and suppliers in planning and forecast process to instil the required confidence in your business </li></ul><ul><li>Ensure financial controls and accurate delivery of information </li></ul><ul><li>Subscribe to Creditpal™ – a new way to increase your own credit </li></ul>
  8. 8. Finance leasing <ul><li>Aligns cost of solution with benefits </li></ul><ul><li>Improves cash flow and liquidity </li></ul><ul><li>Facilitates budgeting through predictable payment </li></ul><ul><li>Bundling of solutions now widely available, H/W, S/W, airtime and maintenance more common </li></ul><ul><li>Now more than ever – makes sense to avoid capital purchase </li></ul><ul><li>Overcomes budgetary constraints and opens pipeline </li></ul><ul><li>Easy quoting tools available online with tailored flexible packages available </li></ul><ul><li>Lease renewal, customer retention and up-selling added products a significant benefit </li></ul><ul><li>No cost to the Reseller and so easy to offer </li></ul>

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