Distributor Credit
Solutions
Private Label Distributor to Merchant Credit Program
Offer Your Merchants Credit Terms Without Taking on the Credit Risk
Prepared By Albert Behin
Director of Business Development Distributor Credit Solutions
917-361-0116
Background – Who We AreDistributor Credit Solutions (DCS) is a Manhattan based boutique high risk credit provider for small businesses.
• Enhance a distributor’s bottom line by providing an easy and turnkey credit solution to their merchants.
• Offer a streamlined platform where distributors can offer credit terms to their merchants without taking on any credit risk or tying up their internal capital.
• Provide merchants with a revolving line of credit that can only be utilized to purchase goods from the distributor referring the account to DCS.
Mission
WHAT WE ARE OFFERING
To lessen the challenges faced by distributors
regarding the need to extend credit for their merchants and the potential risks that are associated with extending the credit.
To limit unpaid products by the merchant which may cause the sudden cancellation and shrink of orders.
To help distributors and merchants avoid losing money.
How DCS works
The distributor will let the merchant know that they can offer them credit
terms on their next purchase in the form of a cash advance.
The funds will be accessible the same way a revolving line of credit works.
DCS will provide the distributor with informational marketing materials to
give to the merchant that explains how the money advanced can be
accessed and utilized.
DCS will also provide a phone number for the merchant to call and speak
with one of our qualified sales merchants.
DCS also provide private label marketing materials with the distribution
company’s logo, have the phone answered with the distribution company’s
name, and have it appear as if the distribution company is directly offering
the credit terms to the merchant.
Advantages of our Program
For Distributors:
DCS will ensure that the customer takes delivery of the entire order that was initially placed.
DCS will ensure that distributors collect payment upfront for the entire quantity of product that was ordered.
DCS will help give merchants purchasing power so they can afford entire orders and purchase new products without cannibalizing sales of existing products.
Decrease the need for the driver to collect cash from merchant.
Advantages of our Program
For Merchants:
DCS will provide purchasing power to merchants so they can afford to pay for the entire product ordered and be in a position to be able to afford to increase orders and purchase new products.
Lower merchants’ cash flow burden by providing a cashless solution.
Eliminate the need for merchants to have cash on hand when the delivery arrives.
Qualifying Merchants
Upon calling us, one of our credit representatives will answer all questions regarding the credit products that we offer, then the application process begins.
The merchant’s monthly credit or debit card transactions and/or monthly deposits to their bank are required for us to determine the amount of the cash advance.
Process DCS underwriters will
evaluate the merchants’ credit card
receipts within 3 hours of
submission.
The revolving line of credit
will equal approximately 25% of their
monthly credit card receipts.
The merchant will place an order for the
upcoming month which will be funded
to the distributor.
Once approved, the merchant will be partnered with the distributor and inform them how much product can be purchased by
the merchant from their credit.
The distributor will notify our company the next time the merchant places the order and we will prepay the
orders.
DCS will take a portion of the credit
card receivables each month from
the merchant.
All future orders can be placed against their open credit limit (the
difference between the original credit limit extended and any portion of the advance that is not used and repaid) allowing the merchant to place each
order without concern.
Full Transparency to the Distributor Distributor Credit Solutions offers an
online portal that will allow the distributor to view real time reports concerning the
accounts which an advance has been extended to.
With the click of a button our portal allows the program’s administrator to run
reports based on a user definable date range, individual store location, and/or
individual terminal.
We report outstanding liabilities available in real time and account for the funds considered “in inventory” as well as those considered active. The distributor can always have a
transparent view of what is going on with each of their merchants.
Full Transparency to the Merchant
The merchant simply enters their account information for them to be able to view their transaction history.
Merchants can get their balance, transaction history and account status information by logging into the DCS website or going to any private labeled website the distributor chooses and logging in (the code is portable).
Implementation
Creating a Master Corporate Account on the Platform
Setting up all location accounts in the database
Downloading or installing POS software applet
Generating account and terminal numbers
Setting up and branding the websites reporting
module
Setting up and customizing the website if requested
Setting up and deploying customized business rules
Process Flow A list of perspective eligible merchants would be provided by distributor for the purposes of solicitation for the Cash Advance Revolving
line. Merchant submits application and
supporting documentation for
UW.
Merchant is approved for the Cash Advance revolving line. (within 3 hours)
Merchant reprograms credit
card terminal (within 48 hours)
Merchant places full order for the coming calendar
month
Funds for full months order are transferred to Distributor (same day as
order)
Merchant repays balance via set
percentage of credit card receipts (30
days)
With 30 days the balance is satisfied in
full Merchant reorders
Program Benefits
•Merchants are empowered to place larger orders.
•The additional funds will allow the merchant to increase their weekly orders from the distributor so they can sell the same amount of old products.
Increased buying power
•Distributor will receive payment within 24 hours of an order being placed for that month’s entire sales.
Enhanced Liquidity
•Merchant will pay for their order on “credit” without Distributor having to pay any credit card fees to process the transactions.
•Distributor will save over 2% in interchange fees which would be paid if the merchant called in an order and paid over the phone.
Zero Interchange
costs for Distributor
•Eliminating of the problems with orders and helping the merchant to pay when the delivery arrives.
•Distributor would incur for returned cases.
Guaranteed Purchases and
Deliveries
•All transactions are electronic.
Cashless Transactions
Summary DCS offers a win-win for all parties involved and provides the Distributor with an effective efficient, cost saving solution for its merchants.Much thought and ingenuity went into tailoring a program that would adequately address the needs of the quintessential the Distributor customer. It is our firm belief that this solution will greatly increase sales on the merchant level while greatly benefitting the Distributor bottom-line.DCS is prepared to commence operations immediately have the systems and financial capacity in place to board all merchants interested in the program.
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