Dealing With Credit Crunch

• Email
• Print
• ( 0 )
• 

When the times get tough, don't crumble under credit load, plan and move cautiously.Here we brings some pointers on what do you do to pass over this phase.

The tough times are here right now. Most of you as resellers or channel partners must be reeling under the impact shortened credit limit. This is basically a logical turn that most vendors and distributors take during this phase to cut down on stock overload.
Does not really solve your problem as the reseller, does it? Over that most financial lending companies are also shying away from extending loans or loan period. While you may ask your distributor or dealer to extend limit or request vendors for a financial backing, but that will not come through easily.
So what do you do to pass over this phase? Here are some pointers.  
1.       Careful product stock planning is a must if you are a reseller. As a solution provider plan for your clients value add needs that will ensure better product transition in future.
2.       Even if you feel there's an opportunity, avoid over stocking. Since buying decisions can

change in a minute.
3.       Look to work with a certain working capital, and do not go beyond that till you recovered the same from the market. This may slow down your business, but it will survive.
4.       Instead of trying to push boxes to your SMB clients, right now just sell value adds to their existing sets ups, as most of the SMB's and even enterprises would have put a hold on big budget spend on IT. They wouldn't mind buying in small pieces.

5.       Don't borrow heavily from one bank, instead work with two to three banks for smaller amounts. Smaller amounts are given out easily.
6.       Be sensible about your borrowings. Keep track of your debts, don't take money from too many sources as that can have an adverse impact on your business.