IBM's lending unit has signed a financing deal with Advanced Micro Devices and its distributor network to begin the flow of cash and credit in Tianjin Binhai New Area.
The Tianjin government last year provided IBM Global Financing, the lending and leasing business segment of IBM, an exclusive license to provide accounts-receivable lending in the Tianjin Binhai New Area, a key economic development zone 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 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.
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.
Tianjin Binhai New Area 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.