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TD Synnex hits UK credit milestone
Distributor has extended credit lines of more than £2bn to help keep business flowing for partners
Distribution has always played a role in providing the channel with credit to support growth and help unlock deals that could have otherwise been delayed.
In its position as one of the largest players at that tier of the channel, TD Synnex has been dealing with significantly larger volumes on the finance front, and has hit the milestone of making more than £2bn in credit lines available to the UK channel.
The distie provides a range of credit options for resellers and their customers through its TD Synnex Capital arm.
David Watts, regional vice-president and managing director for UK and Ireland at TD Synnex, said the need for customers to undergo digital transformation projects has helped drive the demand for credit.
“We are committed to delivering excellence in credit and finance services, and with partners now operating mixed models of solutions sales, subscriptions and services, the availability of these options is more important than ever,” he said.
“While end customer organisations may want to invest in new technologies and solutions, it is not always easy to allocate funding right away,” said Watts.
“In addition, most customers now want to use a mix of on-premise and cloud solutions, and to both purchase and own products outright and take advantage of subscription offerings,” he said. “As a consequence, partners are now having to manage ever-more-complex installations and their business models are changing.”
Supporting partners
Watts said the role of a distributor was to support partners, and that credit and finance formed a crucial part of that, offering to ensure business opportunities could continue to be closed.
Customers are under pressure to invest in a range of areas, including artificial intelligence (AI) and security, and the expectations are for increased growth this year.
Last week, TD Synnex shared its Q4 and full-year numbers for the three months and year ended 30 November 2024, with its CEO, Patrick Zammit, using the occasion to share some thoughts about the state of the market.
“We delivered strong results this quarter, driven by our end-to-end portfolio, global reach and differentiated value proposition that enable us to capture a wide range of technology spend and grow our market presence,” he said.
“Building on our momentum, we believe we’re well positioned for the year ahead as we anticipate the IT spending environment will continue to improve,” said Zammit. “For the fiscal year, the distie indicated that across Europe, it generated revenues of $19.6bn, which was up ever so slightly compared to the $19.4bn a year earlier, representing an increase of 1.1%. Operating income was $264m, compared to $236m in the prior fiscal year.
For the business as a whole, revenue increased by 1.6% to hit $58.5bn, and gross profit was flat at $4bn.
Other distributors have also recognised the importance of helping partners with finance, with Exclusive Networks a recent example, launching its XPS invoicing and payment solutions service, allowing resellers and MSPs the option of offering customers structured and deferred payment options.
