Credit Tightens Around Channel

Financing and credit is becoming more on issue for resellers as the credit squeeze finally makes it was to the channel. Major channel distributors say they aren't pulling back their credit lines to channel partners, but vendors and financial companies are another matter.

There's an interesting article on Channel Web reporting that IBM Financial Services and De Lage Landen Financial Services are cutting channel credit programs, causing channel partners to scramble for alternatives. American Express is also said to be paring back credit lines, but this isn't limited to the channel. I've heard a lot of complaints during the last few months that Amex has been reviewing the credit lines of many small businesses and individuals and rolling back (or eliminating) credit lines. As lending continues to tighten and financial services companies get even more cautious, this sitation is going to hurt the channel's ability to do business.

Meanwhile, there's another report that marketing funds are also coming under scrutiny, and by Microsoft no less. The Web site SearchITChannel has a report that solution providers are complaining (anonymously)  that Microsoft has pared back its support and changed the way some of the channel marketing programs work. Microsoft denies it has cut channel marketing budgets. This could be another example of how money is drying up for channel sales efforts as the economy heads south.


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