Computer 2000 (C2000) is pumping £4m of additional credit into the channel.

Despite a collective denial within the European tech channel that the US credit crunch is starting to bite hard, C2000's handout will probably be seen as a welcome cash injection for 800 of its smaller reseller customers.

C2000, which is the UK outfit of IT distributor Tech Data, said it will negotiate terms with resellers that had been previously managed as cash-with-order accounts.

Andy Gass, managing director at C2000, said that the logic behind the firm's financial strategy could see more customers benefiting from sales support and market focus.

"By extending these credit lines we are demonstrating our commitment to our smaller customers and making it easier for them to take advantage of the full range of value-added services and support that Computer 2000 provides," he said.

The distie added that it hoped the credit incentive would push up business with its smaller customers by simplifying the selling of its three key tech brands: Cisco, Microsoft and HP.

Under the scheme, C2000 said it will review the status of any reseller that doesn't already have credit with the firm. ®