ARMONK, New York - 11 Dec 2000: . . . IBM today announced a unique financing program enabling qualified IT service providers to lease their entire inventory of maintenance parts. The Parts Cabinet Lease, available from IBM Global Financing's Global Asset Recovery Services (GARS) unit, allows service providers to offer their customers faster response time on maintenance and repair jobs because more parts can be in stock. By not having to buy parts in advance, service providers can keep more on hand and potentially improve their financial results in a number of ways.
Under the program, participating IT service providers lease from IBM Global Financing $50,000 or more worth of IBM and non-IBM hardware parts, such as disk drives, monitors or system boards, from a designated supplier. Providers can select a two- or three-year rental agreement, at attractive financing rates, with the option to purchase the parts inventory, extend the lease or return the inventory at end-of-lease. The terms of the parts lease also make it attractive to service and maintenance organizations in mid- to large enterprises and IT manufacturers.
In addition to reducing downtime and providing customers with quicker turnaround, service providers reap a number of financial benefits. Providers' shipping costs are drastically reduced because the majority of the anticipated parts are already in stock. The lease eliminates the need for the provider to make any large capital outlays to buy parts, freeing up cash flow. Also, because the parts are leased, providers can improve revenue and profitability compared with purchasing the parts. In addition, leasing prevents inventory obsolescence and eliminates the need for equipment disposal.
"The Parts Cabinet Lease program enables any user of parts, whether service and maintenance organizations or manufacturers, to acquire the parts they need without making costly investments in their inventory. As a result, they are able to offer their customers high-quality service with quick turnaround time," said Peter Matthews, general manager, Global Asset Recovery Services, IBM Global Financing.
An important feature of the Parts Cabinet Lease program is the inventory replacement option. As service parts are consumed and reordered, they can be replaced with newer components of like kind, provided they are of equal or greater function than the components being replaced.
The Parts Cabinet Lease program is available in the United States for qualified customers. For further information, customers can contact IBM at 1-800-422-1539.
Global Asset Recovery Services is the IBM entity responsible for the disposition of returned and excess materials worldwide. The scope of GARS responsibility includes materials sale, reuse, disposal, refurbishing, repair, remanufacturing, dismantling, transportation and warehousing associated with all IBM returning and excess inventory.
As the largest IT financier in the world, IBM Global Financing offers customers in more than 40 countries leasing and financing solutions for hardware, software and services acquired from IBM and other vendors. With more than $44 billion in annual financing originations in 1999, IBM Global Financing also provides flexible commercial financing for inventory, accounts receivable and acquisitions. In the United States, IBM Global Financing customers are served by IBM Credit Corporation. Visit the IBM Global Financing home page at http//www.ibm.com/financing
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Hardware leasing, software and services financing, commercial financing, inventory, accounts receivable, term loans, acquisition financing