IBM’s Lending Unit provides Credit in China

08/01/2010

 

IBM Global Financing (“IGF”) has been operating in China for more than 10 years, providing IT leasing to clients and IBM Resellers. Now it has announced that its lending unit has signed a financing deal with Advanced Micro Devices, Inc. (“AMD”) and its distributor network that will begin the flow of cash and credit in an important economic development zone in China.   

Late last year, IGF received an exclusive license to provide accounts-receivable lending, or factoring, in the Tianjin Binhai New Area, a key economic development zone, designated by the government to provide support for innovative business initiatives. With this new factoring licence, IBM recently established a new operating entity called IBM Factoring (China) Company Limited. 

IBM Factoring (China) Company Limited has entered into an agreement with AMD to factor AMD sales receivables in China. IBM Factoring (China) Company Limited will purchase receivables resulting from sales by AMD to its main technology distributors. IBM Factoring (China) Company Limited will pay AMD up front for inventory delivered to its distributor network and extend payment terms to these distributors on a flexible schedule.

“One of the keys to economic recovery is the successful partnering of private and public sectors,” said Mario Bernardis, general manager for worldwide commercial financing, IBM Global Financing. “This new partnership with IBM Global Financing and the Tianjin Government will bring great benefits to businesses looking to speed up the conversion of their invoices to cash. We are grateful to the Tianjin Administrative Bureau of Industry and Commerce for granting IBM this factoring license – a first of its kind in China.” 

“This customer-focused financing arrangement can facilitate the flow of AMD’s market-leading solutions throughout the China marketplace,” said Devinder Kumar, AMD senior vice president, corporate controller and treasurer. “Working with IBM Global Financing, our customers in the region can focus on leveraging our technology towards greater profitability and resilience, and let the payment cycle run smoothly in the background.” 

Back