17 Nov 2006:
IBM Global Financing, the lending and leasing arm of IBM (
"There is a clear need for someone to accelerate the cash conversion cycle for the myriad of small resellers who do not have easy access to capital. Our intention is to fill that void," said Jonathan Morris, Vice President WW Commercial Financing, IBM Global Financing. "IBM has developed a web-based solution that resellers can rapidly activate and give these organizations access to additional capital to fund growth."
The IBM Flexible Credit Program will allow resellers to make purchases from authorized suppliers on a revolving line of credit. In a typical scenario, resellers of a manufacturer's IT product or service will take charge of inventory until sales to their end users are completed. With IBM Flexible Credit, resellers are provided with an easy flexible payment option to pay off the manufacturer or supplier before the term's expiration. The program further affords resellers the flexibility to acquire new technology and other approved products for resale.
IBM Flexible Credit applications can all be processed over the Internet for credit lines of $100,000 to $500,000. Resellers can benefit from "no-interest payment charges" for varying financing periods of 30, 45 or 60 days. Unpaid balances will accrue a low, competitive interest rate per month with flexible repayment options. Additional terms and conditions may apply.
The IBM Flexible Credit offering is already being piloted by leading IT products distributor Tech Data Corporation (NASDAQ: TECD) to resellers in the US. Recently, IBM Global Financing and Tech Data teamed up to help resellers more profitably sell IT solutions to their small-to-midsize business (SMB) customers through a comprehensive leasing program.
"It can be a challenge for SMB resellers to find adequate financing, especially when they are pursing larger, business-building opportunities," said Mike Zava, Tech Data's Senior Vice President, Credit and Customer Services, The Americas. "Having access to The IBM Flexible Credit program enables resellers to secure additional credit quickly so they can focus their time developing solutions, interacting with their customers and profitably growing their business."
About IBM Global Financing
IBM Global Financing (IGF), the financing business segment of IBM and the world's premier single-source provider for multivendor IT financing solutions, serves commercial clients ranging from small businesses to the majority of the Global Fortune 100. With assets of $31 billion worldwide, IGF provides project financing, commercial financing and asset-recovery services to 125,000 clients in more than 40 countries. Additional information can be found at http://www-03.ibm.com/financing/us/
About Tech Data
Founded in 1974, Tech Data Corporation (NASDAQ: TECD) is a leading distributor of IT products, with more than 90,000 customers in over 100 countries. The company's business model enables technology solution providers, manufacturers and publishers to cost-effectively sell to and support end users ranging from small-to-midsize businesses (SMB) to large enterprises. Ranked 107th on the FORTUNE 500®, Tech Data generated $20.5 billion in sales for its fiscal year ended January 31, 2006. For more information, visit www.techdata.com.
Business partner information including strategic alliances
Hardware leasing, software and services financing, commercial financing, inventory, accounts receivable, term loans, acquisition financing