News

VARs Put $80 Million In Additional Credit From Westcon To Good Use

Extending $80 million in additional credit has paid off handsomely for Westcon Group's reseller customers in recent months.

Pat Aulizia, president and CEO of Neteam, in Richfield, Ohio, said his company has benefited from Westcon's consultative approach to financing, in which the distributor meets with resellers before sales are made. That is helping his company seal millions in deals it might not have made otherwise, he said.

Neteam has grown 800 percent since 2004, quadrupling the number of employees on staff and now having a record-breaking quarter, Aulizia said.

"We needed to figure out how to process the larger orders than usual for the quarter. [Westcon] came up with a way to extend what we would need to do with the customer and went over how to go about processing multimillion-dollar orders," he said.

Without Westcon's assistance, Neteam would have gone the route of bank financing, "which is never an easy task" Aulizia added. "In this case, the very strategic ways that we came up with taking care of the very large customer we had made the difference If we'd had our investors or our bank sign for it, it would have been a lot slower process."

Neteam meets regularly with Westcon subsidiary Comstor to make sure the Tarrytown, N.Y.-based distributor has the inventory on hand to meet demand and to ensure the solution provider's credit is in order.

Westcon's goal is to become more proactive and anticipate customers' needs rather than scramble to make deals happen, executives at the distributor said.

"We think that adds a lot of value to our customers as it provides them with a greater opportunity to grow their business," said Chuck Thropp, CFO of Westcon Group, North America. "They know they have the credit with Westcon Group to buy the products."

In recent months, Westcon has increased credit for more than 700 of its resellers; in any given month, about 25 percent of them utilize one of the distributor's financing vehicles.

"We have a lot more invested in our customers' business," said Ed Grzelakowski, director of financial services at Westcon Group, North America. "Since we've engaged our customers on the front side of the sales cycle, we can offer more solutions to them that fit the opportunity."

Westcon Group's financing has been invaluable for Jarrod Sipe, president and owner of Herndon, Va.-based Matrix Technologies, as he tries to grow his business.

"They work very closely with me on multiple deals, whether I'm using third-party leasing, or a leasing company pays them some money during the process instead of waiting for it to come all at the end," he said. "They're very flexible with their financing."

Matrix Technologies met with Westcon's finance team recently to discuss its quarterly finances.

"The more you share with them, the more flexible they are," said Sipe. "I've worked with other business owners in the industry who buy from other companies, and I hear a lot more about how credit is an issue, whether they're on hold or they don't have the money to fund a particular project. I've honestly never had those issues.”

Contact

Jeff Touzeau

Director, Corp Comm

914 829 7388

jtouzeau@westcon.com