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Leveraging credit to help your company grow

April 20, 2021

Leveraging credit to help your company grow
powered by Sounder

Credit is not evil. It’s there to help your company grow and ensure you never have to say no to a deal.
In this episode of B2B Tech Talk, Travis King welcomes Tom Zacher and Dave Michalek, two sr. credit development managers at Ingram Micro, to discuss:
  • Top priorities for financial solutions customers
  • End-user financing
  • How to adjust your approach to credit and financing

Top priorities for customers

  • Developing deep end-user relationships - Coming to a more in-depth understanding of your customer and their business, which allows resellers and distributors to do things with customers they would otherwise be unable to do from a financing perspective.
  • Creating long-term sticky solutions - Creating long-term solutions that are either annuity-based or contractual so there isn’t the risk of having to secure the deal the following year.

Credit toolbox for resellers

Establishing relationships with customers is vital. But in addition to building a transparent and beneficial relationship, there are five other tools Dave believes resellers should keep in mind with an end-user credit perspective:
  • Credit reports
  • History with customers
  • References
  • Financial statements
  • Research
In addition, Tom highlights some intangibles he likes to look at when considering a credit extension. They include:
  • Sophistication of the customer’s engineering team
  • Executive team bios and experience in the industry
  • Customer base
  • Direct Express - a program that relies heavily on the end users financial strength (the end user pays Ingram Micro directly)

End-user financing

These are different programs outside of normal trade credit. Direct Express is one example. Some other examples include:
  • Extended terms - If the end user needs extended terms, the reseller may need those extended terms, too.
  • Lease financing - The money gets paid upfront by the leasing entity and then the end customer pays over time.
  • Annuity or subscription deals - Paid over an extended period, typically 3 years.
  • Managed service financing - If a customer has a managed service contract that’s over several years with their customers and there’s hardware required up front, Ingram Micro can finance the contract to pay for the hardware.

Adjusting your approach to credit and financing

Tom and Dave have advice for adjusting how you approach credit and financing. It goes back to building relationships.
Listen to your customers and understand what their financial needs are. Bring in your financial team from the get-go, so that the terms are understood and everybody is on the same page.
And even if customers come to you with an oddball deal, don’t say no. Check in with your credit development manager at Ingram Micro and see if they can customize a solution for you.
Check out the Credit Development Playbook and email the Financial Solutions team at financialsolutions@ingrammicro.com.
Learn more about Direct Express Complete and other Financial Solutions offered by Ingram Micro.