C2000 has expanded credit lines to around 1,950 SME resellers who pay on time with an injection of £25 million, to stave off fears that the widely expected credit crunch is affecting their ability to get finance elsewhere.
Speaking about the move, the distributor’s credit services director Nick Tiltman (pictured) said that it was the largest cash injection the company had made into the channel for years.
"Six years ago we put in about an extra £80m or £90m, but that was over six months. We have done this very quickly as we are confident in our ability to manage it.
"If resellers are paying on time and growing their business we will grow their credit lines and support them," he added.
Tiltman also claimed that because of the nature of smaller VARs and resellers, they are far more vulnerable to changes in the availability of credit, with many relying on business loans and credit cards.
He cited recent examples of moves by financial institutions to block credit, such as Egg’s decision to remove the ability for 160,000 of its customers to use their cards further from February.