D&H Pumps $21M of Credit into the Channel

D&H Distributing this week once again increased the lines of credit it makes available to nearly 600 of its channel partners.

The goal is to not only increase market share at the expense of larger distribution rivals but also encourage partners to finance larger IT deals, says Tony Warfield, vice president of credit and financial services at D&H.

This latest infusion totals $21 million. Privately held, D&H since the downturn of 2008 has injected $168 million of credit infusion into the channel as part of an ongoing effort to proactively make sure partners can quickly and flexibly close deals, says Warfield.

“We’ll be there to meet the needs of our partners through thick and thin,” says Warfield.

Those infusions are being employed to close deals involving solutions spanning the cloud, professional audio/video (AV), collaboration, K-12, client devices, and wireless WiFi 6 networks, says Warfield.

In general, Warfield says it’s apparent that many of the solutions being sold into the small-to-medium business (SMB) space primarily served by D&H are becoming more complex. As channel partners rise to the challenge, Warfield says D&H is committed to removing as much friction from the purchasing process as possible.

Overall, despite concerns stemming from macro-economic issues such as trade wars between the U.S. and China, Warfield says the overall health of the channel remains strong with traditional value-added retailers (VARs)growing substantially faster than channel partners selling to consumers via retail outlets. The biggest inhibitor to growth in the channel remains the shortage of processors available from Intel, notes Warfield.

Short of a recession impacting every sector of the economy, sales via the channel through most of the coming year should remain robust. The challenge, as always, is to make sure the deals being closed by partners are profitable enough to sustain continued growth well into the next decade.