We offer a number of financial services to our customers (pending approval and set-up by our Credit Department). We provide these services to give you additional purchasing power if you do not have sufficient open lines of credit with us and do not wish to prepay.
The following are brief overviews of the financial services Chipco provides. Contact our customer service department at (888) 332-4472 or (803) 786-8646 for full details or to apply.
Standby Letter of Credit
A Standby Letter of Credit allows you to use your line of credit with a bank as security for a charge account with Chipco. Your bank will require you to pledge assets (such as inventory or receivables) to them. The bank then writes a letter guaranteeing Chipco that you will pay your debts. If you fail to meet your obligations regarding the terms of your Chipco charge account, we will obtain payment directly from your bank. The bank will then collect from you. This choice is often beneficial if you have sales exceeding your credit limit and/or your financial condition is unable to support your needed purchase volume.
Joint Purchase Order
Our Joint Purchase Order program accommodates large-bid situations where all products for one of your customers are purchased from Chipco. Under this option, your customer would agree to make checks payable to both you and Chipco. Your customer would then mail the payment directly to us. We deposit the check and remit your share back to you. Product sold under this arrangement is shipped directly from us to the customer. Chipco will evaluate your customers’ credit standing. Normally this is not a problem if the customer is a state/federal department or institution.
This is an excellent option for resellers who:
- Have limited financial means
- Are selling products to state-owned institutions
- Want to respond to large institutional bids where normal credit lines may not be sufficient to support purchase.
Personal Guarantee
This program allows officers and owners of resale companies to pledge personal assets (if sufficient) as security for Chipco accounts payable. Individuals signing personal guarantees are required to submit personal financial statements for approval by our credit department.
Inventory Finance Company (A/K/A Floor Planning)
Third-party finance assistance is offered by the following lender: IBM Credit Corporation. This choice is often beneficial if you have sales exceeding your available credit limit with Chipco. You are required to pledge assets (such as inventory and receivables) to the finance company as collateral. Often, the finance company's terms include finance or interest fees to be paid by you as well as by Chipco. The finance company remits payment to Chipco within our terms, and then collects from you under the finance company's terms. If you are currently doing business with IBM Credit Corporation, we can ship orders under this credit option. We are currently unable to assist resellers wishing to initiate business relations with IBM Credit Corporation.
NASBA Credit Card
This program is currently in development; more details to follow.
Customer Leasing
Chipco does not offer customer or end-user leasing, but we do deal with several leasing agents. If you are interested in offering leasing to your customers, contact:
David W. Wood
Regional Account Executive II
BB&T Leasing Corporation
P.O. Box 1727
Wilmington, NC 28402
0ffice-910-815-2717
Fax-910-815-2755
Cell-910-619-7200
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Mail Code: 212-01-01-00
Click HERE for an application.
