HP Group of Arrow ECS

Financial

The HP Group of Arrow ECS offers a wide range of financial service options. We understand your need for flexibility and the distinctive requirements it takes to meet your needs in the marketplace. Our financial service options are designed to meet your needs and help you grow your business.

• Open Account
• Escrow
• Inventory Financing/Flooring
• AcSelleration Program
• Leasing
• Other Options
  • Visible scrow
  • Supplemental Security Agreements
  • Joint Purchase Order
  • Assignment of Proceeds
  • Purchase Order Letter of Credit
  • Prepayment
  • Credit Card

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Open Account
The Open Account is used to extend a line of credit under net terms. Net terms are usually 30 days, which means that a reseller has 30 days from the date of invoice to pay for the product or service. The line of credit is based on the reseller’s financial condition as determined using the reseller’s bank & trade references, financial statements, and credit reports. This is the most convenient form of credit for the reseller.

Escrow Program
The Escrow Program allows the reseller to maintain responsibility for the account receivable of the end-user and collection thereof, but the end-user's payment is mailed to a bank account set up to hold the escrow remittances. This bank account requires both the reseller and Arrow ECS to sign a document (Exhibit B Form) to disburse the funds. The reseller's proceeds from the sale when disbursed are wired to the reseller's bank account. Arrow ECS offers terms of net 30 days for escrow program transactions.

Advantages:

• This program enables a reseller bid on deals much higher than their approved open account line of credit and increases the reseller’s overall purchasing power.
• Credit approval is based on the creditworthiness of the end-user.
• The end-user is not aware that Arrow ECS is involved in the transaction.
• The escrow transactions do not impact the reseller’s open account credit availability.
• The credit risk associated with the end-user is reduced as Arrow ECS evaluates the credit on the end-user.
• Reseller owns the sale.

Inventory Finance Program/Flooring

Think of the Inventory Financing as a credit card that the reseller can use with Arrow ECS. The reseller establishes a secured line of credit with an inventory finance company. The reseller notifies Arrow ECS of this relationship and we set up an account specifically for purchases placed that the reseller wants billed to the inventory finance company. Arrow ECS pays for the first 30 days’ finance charges in most cases.

We leverage our financial strength and relationships to partner with several finance companies in order to provide the most competitive Inventory Financing opportunities to our resellers.

AcSelleration Program
The Acselleration Program reduces the reseller’s risk of selling to its end-user. Under this program the reseller and Arrow ECS enter into an agreement in which Arrow ECS assumes the responsibility and the credit risk for the accounts receivable. The end-user completes a Arrow ECS (Arrow Electronics) credit application that indicates the contractual relationship of Arrow ECS and the reseller. Arrow ECS extends a line of credit (OPEN ACCOUNT) to the end-user. The end-user submits its purchase orders to “Arrow ECS in care of” the reseller indicating Arrow ECS’s remit-to address. Arrow ECS’s credit services department becomes your credit department managing the collection of the outstanding receivable. The reseller is paid a commission based on the negotiated contract for sales booked in the previous fiscal month.

Advantages:

• End-users are provided with an open account line of credit
• Arrow ECS evaluates the creditworthiness of the end-users
• Arrow ECS assumes the risk
• Arrow ECS manages the processing of end-user purchase orders
• Arrow ECS manages the collection of the accounts receivable
• Arrow ECS manages the customer service issues of the end-users (RMA's, etc.)
• Reseller is paid their commission monthly regardless of whether the end-user has paid the invoice or not

Arrow Partner Financing - Helping you Navigate Economic Uncertainty
According to the Equipment Leasing Association, 80% of all customers finance their purchases. Leasing is a solution that allows you to offer your customers the ability to finance product over time rather than paying cash up front. It is a proven way to increase your profitability, cash flow, and credit capacity, as well as shorten your sales cycle.

Offering total solution financing:
Arrow Partner Finance can help you identify a more strategic path for Arrow solutions.

• Total business solution financing (hardware, software, services)
• Flexible financing structures and terms that allow access to future budgets, with the option to move from capital to operating expenditures
• Accelerated ROI by allowing project cost to be aligned with the technology benefits
• Benefit from the use of equipment, not the ownership
• Predictable payment streams, improved ROI and improved budget management

Overcoming Obstacles:
We can help you remove or reduce the barriers preventing your customers from obtaining the technology that can most benefit their businesses. We can:

• Offer flexible repayment terms matching expenditure to benefits - payments can be timed to coincide with business benefits that may be seen later in the project, or deferred to meet a company's budget cycle
• Remove cash flow issues, allowing the company to spread the cost of their investment over a number of years
• Turn capital expenditures into operating expenditures through an operating lease that enables companies to benefit from the residual value of the technology upfront
• Offer below cost of capital financing and the advantage of present value discounting - off balance sheet treatment effectively addressing C-level borrowing criteria, freeing additional working capital for the business.

Increasing Purchasing Power:
We are about helping you influence the sale and driving down the cost of ownership. The result being a customer with improved financial performance. You are able to exceed your company's financial and technological goals by offering:

• Custom lease terms up to 5 years with FMV or $1 Out options
• Flexible migration options to manage equipment lifecycles and avoid obsolescence
• Payment deferrals to help align to budget cycles and ROI goals
• Aggressive residuals to lower the overall cost

To learn more about financial selling and leveraging your sales potential, simply email Arrow Partner Financing.

West Coast:	Jerome Jacek (303) 824-3725 jjacek@arrow.com
East Coast & Canada	Dot Sullivan (508) 480-6606 dsullivan@arrow.com
Leasing:     Sales & Education:	Jeff Borgognoni (770) 814-4838 ofc, 770-846-7499cell jborgognoni@arrow.com

  Applications and Tax Forms
Addendum to resale Tax Certificate - 3rd Party drop shipments
Canada Drop Shipment Certificate
Credit application (Canada)
Credit Application (US)
Quebec Sales Tax Drop Shipment (U.S.version)
Quebec Sales Tax Drop Shipment (French version)
Resale Tax Certificate Instructions
Retail Sales Tax Exemption Certificate
Sales and use Tax Certificate of exemption