Supply Chain Finance Solutions
Distribution Finance
More vendors and distributors are seeking strategic financing
programs to support the sales efforts of systems integrators,
resellers, VARs and e-tailers. Commercial Distribution Finance
(CDF) has proven to be a valuable ally to these customers, working
together to create comprehensive technology finance initiatives
targeted to their specific market segments. Our broad array of
financing products and strategies are customized into independent
financing relationships with each customer.
To fully support such targeted funding requirements, it takes
a partner with the capital resources, program breadth and industry
expertise of CDF. CDF's experience in developing unique programs
to the technology industry, from complex Accounts Receivable Purchase
plans to flexible Purchase Order Funding programs, helps us tailor
the right financing options to meet the needs of our customers.
Vendors and distributors can leverage CDF programs to provide
their customers with larger secured lines of credit, while reducing
their own credit exposure.
Whether their businesses create networking, peripherals, telecommunications
or other technological products and services, vendors and distributors
find CDF financing programs provide them with a strategic competitive
advantage in serving the needs of their markets. Today, CDF has
more than 1200 existing relationships with resellers and systems
integrators, encompassing companies from global solutions providers
to small regional resellers.
Key Advantages of CDF's Distribution Finance Programs
- Accelerate product flow by providing resellers with increased
borrowing capacity through CDF secured credit lines.
- Create customer purchase and leasing programs with attractive
terms and greater flexibility.
- Afford vendors/distributors and their customers with instant
access to account information and payment options through our web portal, for online account
management.
- Able to flex with your needs; with our dedicated industry
presence CDF is able to understand the sales cycles of technology
resellers, systems integrators, e-tailers and VARs.
- CDF's financial strength and resources support flexible
funding programs.
Case History
Macroproducts* was enjoying healthy growth, solid distributor
relationships and an increasing number of resellers relying
upon their open account credit program for product purchases.
However, even in such a positive environment, Macroproducts
saw the potential for problems ahead: Customers were demanding
larger credit lines; administrative details were taxing their
accounting department; and several major customers had maxed
out on their credit -- two of whom were now demanding longer
terms and more flexible payment options. CDF reviewed Macroproducts'
markets and credit needs, examined their long- and short-term
goals, and suggested a customized private label financing program
administered by CDF, yet transparent to Macroproducts' customers.
With the program, CDF assumed the credit risk that had limited
Macroproducts' ability to grow, relieved administrative demands
on their staff, and improved the time-to-market of a significant
product launch by assuming credit responsibility. The company
was able to leverage their new financing program as a strategic
value-added proposition to new customers, directly resulting
in new business. Smart choice.
* Name has been changed to protect confidentiality of customer.