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SLED FED Credit Presentation March 9, 2010

SLED FED Credit Presentation March 9, 2010. Scott Tillesen Director of Credit, SMB Accounts Tech Data Corporation Todd Jordan Relationship Manager GE Capital Solutions. Today’s Discussion Topic: Financing Alternatives. Financing Alternatives.

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SLED FED Credit Presentation March 9, 2010

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  1. SLED FED Credit PresentationMarch 9, 2010 Scott Tillesen Director of Credit, SMB Accounts Tech Data Corporation Todd Jordan Relationship Manager GE Capital Solutions

  2. Today’s Discussion Topic: Financing Alternatives

  3. Financing Alternatives There are three general sources of business financing: Suppliers: Credit limits and end-user payment alternatives Banks/Finance Companies: Inventory financing and end-user financing Shareholders: Personal guarantees and equity infusion As revenue grows there will be more assets such as inventory, accounts receivable, and equipment. Resellers need to plan how additional assets will be financed.

  4. Financing Sources Pie Chart While there is no magic formula to say exactly in what proportion each source of financing should be, what is known is that successful companies need all three sources to grow. 4

  5. Financing Source: Suppliers • Maximize Credit Limits with Terms by: • Sharing Financial Statements • Having good industry payment record • Not having any reported liens, suits, or judgments • Disclosing education and experience of owners and operators • Providing a personal guaranty or security interest • Providing a Stand By Letter of Credit (“SLOC”) • Communication

  6. Financing Source: End User Direct Payment • Assign your accounts receivable to Tech Data via an Assignment of Proceeds (“AOP”). • Tech Data provides the required wording for Reseller to put on their letterhead. • Reseller signs the document as does the end-user. • Provides end-user agreement to pay Tech Data directly. • Great alternative for a specific large transactions or on an ongoing basis. • Subject to the end-user being credit qualified.

  7. Financing Source: End User Lease Financing • Reseller identifies end-user to leasing company. • Leasing company approves and documents the deal. • Leasing company pays Reseller and Tech Data. • Tech Data Leasing Partners: • CIT, HP Financial Services, IBM Global Finance, and others with prior approval.

  8. Financing Source: Additional Shareholder Investment • Vendors compare the size of their investment to yours. • They like to see that you have “skin in the game”. • Credit managers like to see profits retained in the business. • Quantify sources of additional shareholder investment. • Every Fortune 500 company sought outside investors to enable their growth.

  9. Financing Source: Bank Line Financing • Needed to meet overhead obligations. • Sometimes needed to close the gap between accounts payable and accounts receivable. • Keeps creditor happy at a minimal expense. • Is used by every Fortune 500 company. • Financing from Tech Data’s financial partners has advantages.

  10. Financing Source: Tech Data Financial Partners • Reseller applies and obtains a credit line with a Tech Data finance partner. • Reseller places order as usual with Tech Data. • Tech Data obtains electronic authorization from the finance partner and ships the order. • Finance partner pays Tech Data. • Reseller pays the finance partner. • Oh yes, this financing is FREE.

  11. Financing thru Tech Data Financial Partners • Can be used in addition to your Tech Data open account. • Free financing supported by Tech Data and certain product manufacturers. - 30 to 60 day terms in most cases • Tech Data Financing Company Partners: • GE Computer Distribution Finance • Castle Pines Capital • De Lage Landen • IBM Global Finance

  12. GE CDF Channel Finance Solutions Providing innovative solutions to support the entire market channel, accelerate cash-conversion cycles, drive sales growth, and reduce associated risk and administrative cost Working Capital Solutions Inventory Financing International Trade Financing Purchase Order Financing Motivate distributors to stock deeper, provide terms to resellers Extended terms facilitating product movement through distribution channels Financing of large purchase orders Additional credit capacity for large contract orders Financing over the water… Importer terms supported by exporters, providing inventory for growth and seasonal demands • Maximize cash-flow for growth… Secured lending to Distributors and VARs to supplement operating capital requirements • Gov. specific financing • Separate credit facility • S.T.A.R. – Receivables Fin. • A/R Purchase • Asset Based Financing • No LOC or Advance Pay requirement • Reduce administrative cost • Direct Structures • Indirect through multi-tier distribution Sales Channel Finance Revolving Lines Sales Solutions Import Services

  13. Vendor Sponsored Programs 60 Days FREE Cisco Symantec* Sonicwall McAffee **** Fujitsu HP ** Kaspersky *** Lexmark Sony VIAO Tech Select Members – Gov/Edu Purchases 45 Days FREE Apple Toshiba Tech Data TechSelect Members • All other products get 30 Days FREE * Limited to Symantec Silver partners. • ** Subject to Tech Data approval, 60 day terms on select products • *** Limited to Silver and Gold Partner • **** Total Protection Suite products Apply online today!!!!! www.techdata.com/gefinancing

  14. Summary Financing Sources: Suppliers End Users (AOP & Split Funded Leases) Shareholders Bank Lines Technology Financing Companies For more info visit: www.techdata.com/credit

  15. TheDifferenceIn Distribution Scott TillesenDirector of Credit, SMB AccountsTech Data Corporation5350 Tech Data DriveMail Stop #A3-18Clearwater, Florida 33760 Direct phone: 727-538-5880Scott.Tillesen@techdata.comwww.techdata.com/credit Todd Jordan Tech Data Relationship Manager GE Capital Solutions Finance P: 800-237-8931 * 75697 C: 727-480-5143 E: todd.jordan@ge.com www.techdata.com/gefinancing 15

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