VARs feeling the credit crunch

Value-added resellers in the IT channel, including those in IP telephony, are beginning to feel the effects of the economic downturn though tightened access to credit, according to an IDC survey of 43 U.S.-based VARs. The survey also found that the credit crunch is affecting smaller VARs more acutely than those with a larger revenue base. However, even large resellers reported increased customer interest in long-term financing, as well as increased difficulty in securing that credit for their customers.

The tightening of the credit market has led some vendors to get more involved with their channel partners' financing efforts, as the vendors realize the necessity of maintaining strong channel relationships, according to the survey. While the vendors are aware of how crucial financing is for continued sales growth, they also have found their access to credit tempered by the global economic downturn. But with concerns about a tepid recovery only exacerbated by Vice President Joe Biden's assertion that the administration "misread" and underestimated the severity of the economic situation, relief for the IT channel may not be on its way yet.

For more:
- see the Network World article on the IDC survey here (complete with typo in headline) 

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