ASI Releases Results of Credit Survey

93% of distributors say flexible credit terms are important when choosing a supplier

TREVOSE, PA – February 23, 2010 – Ninety-three percent of distributors say credit terms are one of the key factors they consider when choosing a supplier, according to the results of a recent credit survey released today by The Advertising Specialty Institute.

Additional key survey highlights include:

  • Almost three-quarters of distributor respondents (73%) are much more likely to give repeat business to a supplier that extends credit terms.
  • Over half, or 59%, took business to another supplier if their initial choice was too slow in processing a request for terms.
  • Nearly two-thirds (63%) have not experienced a noticeable change in terms in the last 12 months.

ASI surveyed a relevant sample of its distributor member base to gauge how industry credit terms have affected their business during an economic downturn.  The majority of respondents were owners or primary contacts of their business.

In their comments, distributors indicated that it would be helpful for suppliers to speed up the credit-terms approval process.  Suppliers can do this by referring to industry credit reporting tools to determine which distributors have earned the right – due to exemplary credit ratings – to more liberal credit terms quicker. 

“It’s critical for suppliers to learn ways to improve relationships with distributors, and paying attention to these survey results is a great start,” said Gene Rahill, sales director of ASI CreditConnect.  “It’s harder to evaluate terms in tough economic conditions, but now’s the time suppliers can move forward with their best distributors.  If suppliers use a credit rating service, they’ll receive a positive return on their investment fast by finding and using distributors who have a solid track record of paying them on time.”

Respondents said distributors with very good credit ratings often have difficulty getting terms for more than $10,000, and for less than that amount if they haven’t done much repeat business with the supplier. 

Glen Colton, president of distributor Seville Marketing Inc. (asi/323798), suggested suppliers reward good payment behavior.  “If a supplier does good work and gives me terms, I will prefer them over another supplier with lower pricing,” Colton said.  “Moreover, a supplier extending quick and realistic credit terms is twice as likely to get our business as one who wants prepayment.  If cash is king, then cash flow is prince.”

Danny Rosin, president of distributor Brand Fuel Inc. (asi/145025), said that communication and mutual cooperation are key.  “How about a supplier that offered 24-hour credit review and approval, along with a 24-hour production option?,” Rosin said.  “Christmas would come early for many distributors.”

Summing up the majority of survey respondents, Rosin said he would be more likely to work with a supplier who extends generous credit quickly.  “Very with a capital V,” he said.  “Matter of fact, we’ve been known to adjust mid-order to another supplier, with the same product, that has faith in Brand Fuel.”

For more information, contact Gene Rahill, sales director of ASI CreditConnect, at 215-953-3848 and at [email protected].

About ASI
The Advertising Specialty Institute is the largest media and marketing organization serving the advertising specialty industry, with a membership of over 26,000 distributor firms (sellers) and supplier firms (manufacturers) of advertising specialties. Supplier firms use ASI print and electronic resources to market products to over 22,000 ASI distributor firms. Distributor firms use ASI print and electronic resources, which contain nearly every product in the industry from more than 3,500 reputable suppliers, to locate supplier firms and to market services to buyers. ASI provides catalogs, information directories, newsletters, magazines, websites and databases, and offers e-commerce, marketing and selling tools. Visit ASI online at and on FacebookTwitterLinkedInYouTube, the CEO’s blog and the ASI Social Network.

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