The Information Technology Association (ITA), together with its members, has set up a channel reseller division in an effort to assist its members operating in the void left by Siltek.
The goal of the new division is to assist members to gain access to credit, provide training and to provide a forum for advice on continued operations.
The hardest hit by Siltek`s application for provisional liquidation last month has been the resellers, says ITA president Teryl Schroenn.
"Resellers are struggling to find the right lines of credit, and trust in the market is at an all time low," says Schroenn.
Siltek`s distribution subsidiary SDD halted operations after its parent applied for provisional liquidation last month. SDD was the largest distributor in the country and was responsible for supplying many of the local resellers.
In order to facilitate the lines of credit, the ITA has called on board credit underwriters Credit Guarantee and CUAL.
Schroenn says ITA membership will carry weight when applying for credit and the two credit companies will also attend ITA meetings to assist the new unit.
Participants in the new entity include Westcon, Tarsus, Intel, Acer and Mecer. Schroenn says the ITA is in talks with all of its relevant members to ensure their participation.
In addition to the credit problems, the ITA says it is aware of the potential rise of grey products and additional fly-by-night entrepreneurs eager to take advantage of the gap left by Siltek.
Schroenn says the ITA is assembling several other structures besides the channel reseller division to combat these problems.
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