IBM Global Financing Americas

1
Education module

• Presented by Dorothy Ward, Vendor/Alliances
  Manager
• IBM Global Financing Americas

2
Agenda

• IBM Global Financing

3
Partner with IBM Global Financing

• Worlds largest, most experienced IT financier
• 34 billion in assets managed across 50 countries
  
• 125,000 clients
• Small businesses to the worlds largest
  organizations
• Across all industries
• 25 years experience

to provide financing for clients

• Lease/loans
• For hardware, software, services
• From 1,000 to
• Acquired through any authorized sales channel
• Seller sets their price IBM Global Financing
  pays it up front and collects from the client
  over time

4
Financing is leasing and loans
Lease pay to use equipment the financier owns
lowest payment
Fair Market Value
Full Payout
purchase, send equipment to financier,
continue payments or renew (refinance)
Loan pay back money the financier provided Money
loaned may be used to pay software license,
charges for services, purchase equipment the
client would own, etc.
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Benefits of financing to your client
Source Equipment Leasing Association State Of
The Industry Survey
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Benefits to YOU

• More sales, larger sales up front
• Upgrade/replacement sales sooner
• Closer client relationships and loyalty
• Pay as used is an easier sell
• You are seen as a business solution,
• not just a technology provider
• Higher profits
• Addresses affordability without discounting
• Helps focus on the business solution rather than
  piece-part purchase price
• Improved Channel Partner health
• Partner enjoys all benefits listed above
• IBM Global Financing pays the Partners
  invoicefaster than their client would
• IBM Global Financing assumes the clients credit
  risk

IBM study For every 1 leased, clients bought as
much as 5 more over the next 2 years.
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Competitive comparison

• Compelling rates
• Ample access to low-cost funds
• High residual values, due to asset recovery
  expertise
• Unmatched asset recovery services
• 40,000 processed used/idle items each week
• IT financing specialists, proven success
• 25 years in IT financing, 50 countries, 125,000
  clients
• Twice the size of our nearest IT financing
  competitor
• Variety of products, services
• From simple lease for 1 itemto complex financial
  packaging
• From seasonal rentalto multi-year lease
• From acquireto retire (resale or safe, secure
  disposal)
• Total solution financing
• Hardware, software, services...and more

8
The so-called 0 lease explained
0 lease rate Keep your solution up-to-date
with a special 0 lease rate! Spread the cost
over terms of 24, 36, 48 or 60 months and then
simply send them back to us, making room for the
newest technology. Its easy to determine your
monthly payment just divide your total
equipment cost by the number of months in your
lease term! Implicit lease rate, assuming
lessee does not exercise a fair market value
purchase option at the end of the lease term
and timely returns the leased equipment to
xxxxx Financial Services at the end of the lease
term
Client pays the full cost of the equipment over
time, e.g., 100K / 24 months or 4,167
per month But then does NOT own it ! Client
must pay MORE (fair market value) to own it
Typical 24 month FMV payment with IBM Global
Financing? About 3800 per month ...less than
0
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Fast, simple financing for smaller opportunities

• Simple, short contract
• Streamlined handling
• Instant payment estimate at
• ibm.com/financing
• Click Calculators
• 1-hour turnaround

IBM Financing Advantage
The easy way to get what you need (and get rid
of what you dont)
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Customized financial solutions for large
opportunities

• Flexible billing including
• Payment deferrals or rent holidays
• Seasonal/other tailored payment streams
• Quarterly sweeps (aggregate multiple buysfrom
  multiple suppliers into one lease)
• ...and more
• Complete IT financial outsourcing for clients
  over many years to fund their IT strategy
• Tools for clients to track assets, leases
• Buyback and disposal services
• Unique solutions for large quantities, various
  equipment types, multiple locations

Engage your IBM Global Financing rep EARLY in the
sell cycle
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When the client first says Sounds good about
how much does it cost?lead with financing!
About 3 of the purchase price, per month
e.g., Finance 100,000 for 3,000 per month

• This is very rough, conservative, ballpark
  pricing for a
• 3-year term
• 2-year term will be higher, 5-year term lower
• Loans cost more than leases
• Full payout leases cost more than fair market
  value leases
• Equipment types, customer creditworthiness, etc.
  all affect price

12
More information

• Sales Tools portal
• Sales collateral
• Contacts
• and more!