IBM Global Financing Extends $2B in Stimulus Fund Credit

By Jessica Davis  |  Posted 2009-04-30 Email Print this article Print
 
 
 
 
 
 
 

IBM Global Financing is looking to help IT organizations jumpstart IT projects today by using credit rather than wait for stimulus funds to be available in 2010 and 2011 as part of the American Recovery and Reinvestment Act (ARRA).

IBM Global Financing is adding another $2 billion in credit available to end customers over and above the approximately $40 billion it offers them each year, in an effort to jumpstart any IBM-related IT projects that may be awaiting economic stimulus funds expected to become available as a result of the American Recovery and Reinvestment Act (ARRA).

"We know that there are trillions of dollars planned as an economic stimulus, but a lot of that funding won’t get to companies or governments until 2010 or 2011," says Richard Dicks, general manager of the Americas for IBM Global Financing. "Many of our clients are looking for ways to finance their IT projects and they want to get started now."

Dicks notes that IBM’s channel partners and end customers are finding it harder to get credit for technology purchases. Credit is very tight and very costly, he says.

Credit will be granted based on the credit-worthiness of the client and will not be secured with the promise of a government loan or grant. Financing will be available for technology from hardware to software to services to solutions, says Dicks. For example, one of the technology types called out by the stimulus package is smart grid technologies. IBM Global Financing can finance a service engagement that goes from the definition of the project to the implementation, providing a deferred payment plan for the first 90 days, interest-only payments for the next 9 months at a floating below market rate, and then allowing the customer to pay the principal at 12 months.

"That would help a client who wants to get started," Dicks says.

The new $2 billion in credit is specifically for stimulus package projects such as smart grid, health care informatics, other health care projects, education and broadband.

"We want to make sure that the availability of credit doesn’t inhibit clients from purchasing," Dicks says.

He also notes that many of IBM’s partners offer solutions that fit into the technology areas identified in the stimulus package. Partners can bundle this financing together with their proposed solutions to help customers purchase the technology they need now instead of waiting.

"As I meet with CFOs and corporate treasurers, the single biggest thing I hear about is that access to financing is the biggest issue right now," Dicks says. They want to make sure they have enough funding to complete the projects they start, and they are looking to restructure existing financing that they have in place.


 

 
 
 
 
Jessica Davis covers the channel for eWeek and Channel Insider. Her technology journalism career began well before anyone heard of the World Wide Web and has included stints at Infoworld, Electronic News/EDN, and the Philadelphia Business Journal. Her work has also appeared on CNN and Forbes.com. She has covered hardware, software and networking, as well as the business side of technology. She has won several journalism awards, including a national ASBPE award for best staff-written column, and was named Marketing Computers hardest working tech journalist on their inaugural list of top tech journalists. Jessica can be reached at jessica.davis@ziffdavisenterprise.com
 
 
 
 
 
























 
 
 
 
 
 

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