TIANJIN, China, Jan. 8 /PRNewswire-FirstCall/ -- IBM (NYSE: IBM) today announced that its lending unit has signed a financing deal with Advanced Micro Devices, Inc. (NYSE: 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, the Tianjin Government provided IBM Global Financing, the lending and leasing business segment of IBM an exclusive license to provide accounts-receivable lending (commonly referred to as 'factoring') in the Tianjin Binhai New Area, a key economic development zone, designed by the government to provide support for innovative business initiatives.
"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."
Credit is a key concern for businesses all over the world trying to keep their balance sheets healthy. As goods and services pass through their vendor supply network, companies must sometimes wait from 90 to 120 days to get paid. With this new factoring license, IBM recently established a new operating entity called IBM Factoring (China) Company Limited. This new IBM entity will help businesses operating in the country smooth out the time lag between invoice and payment.
IBM Factoring (China) Company Limited has entered into an agreement with Advanced Micro Devices (NYSE: 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.
"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."
IBM Global Financing has been operating in China for more than 10 years. It provides IT leasing and financing to clients across many industries in China, helping them to acquire the IT solutions they need to be successful and competitive. IBM Global Financing also supports the sales and distribution of IBM hardware and software to IBM's Resellers. IBM's financing operations drive channel growth through innovative programs such as payment extension programs, and through solutions to reduce collection disputes. In addition, IBM China Leasing Co offers leasing for IBM products.
A 4-trillion-yuan (585.7 billion U.S. dollars) stimulus package, backed by proactive fiscal policy and moderately easy monetary policy, has encouraged consistent gross domestic product growth in China. Economic development zones, like the China's Tianjin Binhai New Area provide new opportunities for business -- foreign and domestic -- to help improve profitability and stimulate the economy.
About Tianjin Binhai New Area
Tianjin Binhai New Area (TBNA) is an economic development zone within the jurisdiction of Tianjin municipality in China. The TBNA is located at the intersection of the Beijing-Tianjin-Hebei economic zone and the Bohai Bay Rim Zone, which accounts for 17% of China's population and 21% of its GNP.
The region serves as a major hub linking both north and south China, and connects China with northeast Asia. The Area is also one of China's largest education and high-tech centers, with 25 universities and more than 140 research institutes.
The Tianjin Binhai New Area includes a comprehensive overland transportation network, along with highly-developed sea freight links to over 300 harbors in 170 countries and regions. Tianjin Binhai International Airport is considered one of northern China's most important aviation freight centers.
More than 70 of the world's leading 500 corporations, such as Motorola, Toyota and Samsung have opened offices in the Area.
For more information, please visit: http://english.enorth.com.cn.
About IBM Global Financing
IBM Global Financing (IGF), the financing business segment of IBM and the world's premier single-source provider for multi-vendor IT financing solutions, serves commercial clients ranging from small businesses to the majority of the Global Fortune 100. With assets of $34 billion worldwide, IGF provides project financing, commercial financing and asset-recovery services to 125,000 clients in more than 50 countries.
Additional information can be found at www.ibm.com/financing/cn/zh/.
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