Business challenge

To continue growing its business and meet internal reporting targets, Exertis (UK) Ltd. needed to carefully manage its working capital.

 

Transformation

Teaming with IBM Global Financing, the company established a flexible financing solution for its purchases from core technology suppliers.

 

Results

Manages working capital

more effectively with new commercial financing options

Meets internal targets

established by its parent company

Gains flexibility

to pursue business opportunities and drive growth

Business challenge story

Continued growth requiring working capital

As a distributor of products from more than 470 technology manufacturers, Exertis needs to carefully manage its working capital to ensure that it has the financial resources available to pursue promising business prospects as they arise. “Our focus is on growth, which involves greater exposure to markets that are capital hungry,” says Richard Hinds, Group Finance Director for Exertis. “We want to be able to make the most of opportunities when they come along.” 

Additionally, Exertis must meet financial targets at regular reporting intervals established by its parent company, DCC plc. “We could see that having a supply chain financing program in place could be beneficial in helping Exertis continue to address key internal metrics,” says Tim Clements, Commercial Financing Manager, IBM Global Financing.

IBM Global Financing gives us the flexibility to react to things as they come along, expected or not.

—Richard Hinds, Group Finance Director, Exertis (UK) Ltd.

Transformation story

A flexible financing solution

Exertis teamed with IBM Global Financing’s IT supplier and partner financing division to establish a flexible financing solution for its purchases from core technology suppliers. Using an online portal, the distributor can review payment due dates and determine whether extending terms for a certain number of days will be beneficial in terms of its overall cash flow. By adding a small interest fee to its payment structure, Exertis can extend payment terms and gain the financial flexibility it needs.

Working closely with IBM Global Financing personnel, Exertis greatly appreciates the team’s expertise and ongoing support. “The management of activity between IBM Global Financing and Exertis is exceptional, whether it’s in our day-to-day interactions or when we’re looking at new opportunities or solutions,” says Hinds. “Key go-to people in IBM Global Financing act as entry points into other business areas and make those conversations easier for us.”  

Results story

Success in new markets

With the IBM Global Financing solution, Exertis manages its working capital more effectively, keeping core technology products in stock for resellers and extending its own payment deadlines as needed. Plus, the distributor can use flexible IBM Global Financing options to manage payment terms and meet quarter-end cash flow targets set by its parent company. 

IBM Global Financing also plays an important role in supporting Exertis’s continuing business growth and success in new market sectors. “A significant proportion of our UK revenue increase is driven by growth in our consumer division,” says Hinds. “There’s always a pressure on working capital in that area, and IBM Global Financing has allowed us to continue growing in that market. IBM Global Financing gives us the flexibility to react to things as they come along, expected or not.”

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About Exertis (UK) Ltd.

Founded in 1980 and headquartered in Burnley, England, Exertis is one of the UK’s leading technology distributors. The company teams with more than 470 IT manufacturers, offering over 22,000 products to approximately 12,500 retailers and resellers worldwide. A wholly owned subsidiary of DCC plc, Exertis maintains additional locations in Basingstoke, Elland, Harlow, Stoke and Uxbridge.

Take the next step

To learn more about the IBM Global Financing solution featured in this story, please contact your IBM Global Financing representative, or visit the following website: