IBM Offers $4 Billion in Financing to Channel Partners
IBM (NYSE: IBM) Global Financing is making $4 billion in credit available to channel partners worldwide, in particular to stimulate sales of its cloud, analytics and PureSystems technology while easing the path to apply and secure financing with a new mobile app.
IBM’s $4 billion financing commitment follows a similar, albeit smaller $1 billion effort last year aimed at SMBs, an initiative the vendor said proved so popular it resulted in nearly 7,000 companies worldwide running through the financing pool in a year rather than the expected 18 months. IBM, which consistently trots out new financing promotions to spark sales of its gear through channel partners, currently is offering separately on its PureSystems technology deferred payments for up to six months with no upfront costs for its PureApplication, PureFlex, Flex and PureData systems, and zero percent financing on 12-, 24- or 36-month terms for its PureApplication and PureData technology.
Accordingly, IBM said this new round of credit financing aims to ease or eliminate cost barriers faced by businesses when considering IT purchases. The vendor’s lease and loan packages will start as low as zero percent financing for 12 months with no money down and extend to IBM technology and solutions developed by its channel partners. The minimum transaction size is $5,000.
Financing will be available through IBM’s managed service providers, resellers, ISVs, system integrators and distributors, extending to 50 countries, the vendor said. IBM also will provide to qualified channel partners working capital for IT purchases to improve cash flow through financing accounts receivables.
“With this effort, IBM aims to provide the right foundation and resources to our global ecosystem of partners and clients to ensure that businesses, large and small, have access to the right technologies for success,” said Mark Hennessy, IBM Global Business Partners & Midmarket general manager.
IBM said that its new mobile app, available in the United States this month and rolled out worldwide starting in China in January, also will be offered through its Global Financing unit. The app, which is based the Rapid Online Financing tool used by IBM Global Financing and channel partners, features an easy-to-use interface, is designed for non-financing personnel and built for contracts up to $500,000. The idea is to provide an increasingly mobile channel workforce with the tools to provide customers with price proposals and generate quick approvals for credit applications on the fly. The app is compatible with Apple’s (NASDAQ: AAPL) iPad, iPhone and Android-based devices.