1. Scott Tillesen Director of Credit, SMB Accounts SMBAccessCredit Services Presentation

2. August 22, 2006 Agenda 1. Tech Data Credit Philosophy 2. How to Use Credit Relationships and Financing Alternatives forProfitable Growth 3. Tech Data Credit Philosophy 4.

To support the sale of products to our customers.

To utilize a wide variety of financing options and provide guidance that is beneficial to our customers.

To operate within an acceptable range of expense and investment.

Tech Data Credit Philosophy 5. How to Use Credit Relationships and Financing Alternatives for Profitable Growth 6.

Scrutinize purchasing

Maximize natural resources

Torment debtors

Amuse creditors

Utilize financing options

Live to fight another day

Attributes of Credit Survivors 7.

Determine profitable minimize order size

Avoid inventory through outsourcing

Aggregate for improved pricing

Assess the hidden costs in the lowest price

Reevaluate your specialty

Scrutinize Purchasing 8.

Determine your business risk appetite

Plan for sales, asset,andfinancing growth

Know your trade debt limitations

Determine your bank debt limitations

Quantify and qualify equity sources

Un-bundle the value you deliver to your customers

Maximize Natural Resources 9.

Youve done your part remind them it istime to do theirs

Have a strong credit application

Develop a route of escalation

Outsource what you cant effectively handleinternally

Stick to your process

Know when to pull the trigger

Torment Debtors 10. Collection success and valueworsens with the age of the invoice. Billing Date InvoiceDue Date Collection Date 11.

Share financial statements

Announce management & ownership changes

Describe mergers and acquisitions

Know their internal processes and be surethey know yours

Communicate thru email and website

Do not play catch me if you can!!!

Amuse Creditors 12. Financing Pie Chart 13.

Supplier Credit Limits

3 rdParty Financing

Leasing

Assignment of Proceeds

Letters of Credit

Guarantees

Utilize Financing Options 14.

Submit a completed Credit Application

Payment experience of other Distributors and Vendors is reviewed

Credit Reports are reviewed

Payment experience and history is reviewed

Current Financial Statements are studied

Financing Option #1: Supplier Credit 15.

Reseller applies and obtains a credit line with anapprovedFinance Company.

Reseller places order with Distributor (as usual).

Distributor obtains electronic authorization from the Finance Company and ships the order.

Finance company pays Distributor.

Reseller pays the Finance Company (free for 30 to 60 days in most cases).

Financing Option #2: 3 rdParty Financing Can provide you with added credit availability and free financing. 16.

Supplements your Tech Data open account

Freefinancing supported by Tech Data andcertain Vendors - 30 to 60 days in most cases

Tech Data Financing Company Partners: - GE CDF, IBM Global Finance, Textron TechnologyFinance, and De Lage Landen

3 rdParty Financing thru Tech Data 17.

Reseller presents End User to Leasing Company

Leasing Company approves and documents the deal

Leasing Company pays Reseller or Distributor

• Tech Data Leasing Partner options: GE Commercial Distribution Finance; Tech Data OneLease (Citicapital/Citibank); Key Equipment Finance; and others with prior approval.

Financing Option #3: Leasing Can conserve capital and match your customers cash flow.Quick response, simple documentation, commission on approved leases. 18.

Reseller and their qualified End-User agree toassign payments directly to Distributor.

• Tech Data offers an alternative payee: Optimum Financial

For commercial, state, and local governmentEnd Users

Escrow Access for Federal governmentpurchases

Financing Option #4: Assignment of Proceeds Enables large sales to qualified end users. 19.

Standby Letter of Credit (SLOC)

• More cost effective than a bank loan

• Stands as secondary support for payment

Documentary Letter of Credit

Financing Option #5: Letter of Credit Provides additional credit beyond your open account. 20.

Personal Guaranty

Cross Corporate Guaranty

Financing Option #6: Guarantees Can enable the extension of credit beyond your open account. 21.

It is good strategy sometimes to retrench, slowdown, and catch your breath.

Significantly greater risk of being seriouslyinjured when you play hurt.

Classical life-cycle theory suggests businesscant always be in a growth mode.

Windows of opportunity dont stay open long.

Decide while you still have choices.

Live to Fight Another Day 22.

On-line invoice inquiry at: www.techdata.com

On-line customer statements

TD Direct Pay (Internet Bill Presentation andPayment System)

Electronic Resources at Tech Data 23. Let us know if we can help. [email_address]