IBM Global Financing
•Download as PPT, PDF•
2 likes•1,276 views
This document provides an overview of IBM Global Financing (IGF) and the benefits it offers. IGF is the world's largest IT financier, with over $36 billion in assets and financing for over 125,000 clients globally. It offers financing options like leases and loans to help clients acquire IBM and non-IBM solutions. IGF also provides benefits to business partners by paying them faster and helping increase win rates through flexible financing options. Current financing promotions from IGF include 0% financing for 12 months on hardware, software, and other solutions.
Recommended
More Related Content
Similar to IBM Global Financing
Similar to IBM Global Financing (20)
More from Arrow ECS UK
More from Arrow ECS UK (20)
Recently uploaded
Recently uploaded (20)
IBM Global Financing
- 1. IGF UK & Ireland IBM Global Financing David Morgan Financing Sales Executive (morgan3@uk.ibm.com) (+44 7764 132614) April 2012 April 20, 2012 © 2012 IBM Corporation
- 2. IGF UK & Ireland Agenda Who are IBM Global Financing (IGF) ? Today’s marketplace Client benefits Business partner benefits Financial options Offerings How to get the most of out IGF 2 April 20, 2012 © 2012 IBM Corporation
- 3. IGF UK & Ireland IBM Global Financing is the world's largest IT financier with an asset base of nearly $36 billion, and over 125,000 clients in more than 55 countries NE Europe » Austria » Lithuania » Bulgaria » Norway » Croatia » Poland » Czech Republic » Romania » Denmark » Russia » Estonia » Serbia » Finland » Slovakia » Germany » Slovenia » Hungary » South Africa » Iceland » Sweden » Ireland » Switzerland Americas » Latvia » UK » Argentina » Bolivia » Brazil » Canada SW Europe Asia Pacific » Chile » Colombia » Belgium » Australia » Malaysia » Ecuador » France » China » New Zealand » Mexico » Israel » Hong Kong » Philippines » Paraguay » Italy » India » Singapore » Peru » Luxembourg » Japan » Taiwan » Uruguay » Netherlands » Korea » Thailand » USA » Portugal » Venezuela » Spain 3 April 20, 2012 © 2012 IBM Corporation
- 4. IGF UK & Ireland IBM Global Financing at-a-glance Total Solution Approach IBM and non-IBM: Hardware Software Services IBM Global Financing Client Financing Global Asset Commercial Financing Recovery Services Provides financing Provides working capital Offers comprehensive (leases and loans) for and supply chain services for pre-owned IT the acquisition of financing for assets, including resale, solutions and Technology buyback and recycling technology manufacturers and Resellers 4 April 20, 2012 © 2012 IBM Corporation
- 5. IGF UK & Ireland Today’s Marketplace Realities Significant uncertainty remains among businesses Many corporations still in cash conservation mode Access to capital challenging: • Less credit available in the market and more restrictions • Credit lines preserved for core business needs Continued pressure on IT spending Stock Market Volatility Tight Markets Economic Uncertainty The future success of an organization is still dependent on its ability to invest in meeting client needs and improving its competitive position 5 April 20, 2012 © 2012 IBM Corporation
- 6. IGF UK & Ireland What IGF can provide to our Clients ? • Economic recovery from the global crisis has led CFO’s to consider industry pressures will increase challenges and opportunities • Financing helps to address CFO challenges CFO challenges How financing can help Reduce up-front costs and better align costs to Optimize cash flow expected benefits – spread costs up to 5 yrs Additional funding source to free up cash and Maximize liquidity preserve credit lines for core business needs Reduce financial Manage risk with predictable fixed costs unpredictability Improve assets utilization Help ensure optimization with leasing refreshes Renew, return or extend lease at the end of term Reduce costs, improve Return Improve ROI with FMV leases that are lower in on Investment cost (on a PV basis) than outright purchase **Source: IBM Global Business Services, Global CFO Study 2010. . 6 April 20, 2012 © 2012 IBM Corporation
- 7. IGF UK & Ireland Financing can deliver positive cash flow for acquisitions from the outset 2,500,000 Based on a recent standard bid 2,000,000 Cumulative project benefit £ 1,500,000 Cumulative project cost £ 1,000,000 Cost to business Cumulative cost through financing 500,000 Total financing cost only exceeds cash here Cash into business 0 39 months M 11 M 15 M 19 M 21 M 23 M 25 M 29 M 31 M 33 M 35 39 M 13 M 17 M 27 M 37 1 M 5 M 7 M h9 M 3 TIME h h h h h h h h h h h h h h h h h h h nt nt nt nt nt nt nt nt nt nt nt nt nt nt nt nt nt nt nt nt M M 7 April 20, 2012 © 2012 IBM Corporation
- 8. IGF UK & Ireland What IGF can provide to Partners ? • 1. Pays BP faster than the typical client so cash flow improves • 2. IGF take credit risk and repayment collection process • 3. Increases win rate, so BP grows faster from a fixed pipeline • 4. Grow deal size, sell more • 5. Provides negotiation alternatives to resist discounting pressures • 6. Supplies IBM Certified Pre-owned Equipment to help when budget is tight or credit constrained. • 7. Helps differentiate proposal to give BP a competitive edge IGF helps Business Partners grow profitably… by meeting clients’ evolving needs more effectively 8 April 20, 2012 © 2012 IBM Corporation
- 9. IGF UK & Ireland IBM Global Financing offers 0% financing for 12 months Changes Client conversation from “what can you afford” to “what does your company need” Simple payments – divide the IBM Software or Harware Solution price by 4 (quarterly) and propose Predictable quarterly payments with no interest charged 0% financing for new software licenses plus support and subscription charges (25% new licenses required) Available for credit qualified clients Client benefits of 0% Seller benefits of 0% Overcome budget limitations and get the Close deals sooner by overcoming client software you need now. budget issues. Conserve cash for strategic investments. Reduce need for discounting with affordable payment options. Simplify planning with predictable periodic Enable more software acquisition within payments. existing budget. Business Partners, please visit: IBM Global Financing Software on PartnerWorld For Clients, please visit: IBM Global Financing Software *Additional terms and conditions may apply. IBM Global Financing offerings are provided through IBM Credit LLC in the United States and other IBM subsidiaries and divisions worldwide to qualified commercial and government clients. Rates for credit-qualified clients and are based on a client's credit rating, financing terms, offering type, equipment type and options, and may vary by country. Other restrictions may apply. Rates and offerings are subject to change, extension or withdrawal without notice. Charges for software and support and subscription are financed by means of a loan and must be one-time, non-recurring; minimum transaction size $5,000. 9 9 April 20, 2012 © 2012 IBM Corporation
- 10. IGF UK & Ireland Current Financing Promotions on Leases up to £200,000 • Are you limited by a restricted budget for the year ? • Do you have IT requirements now that need investment ? • Want immediate positive cash flow and value return ? IBM GLOBAL FINANCINGHow financing can NOW ! CAN HELP YOU help CFO challenges All IBM Hardware (except Z, RSS) 0% interest for 12 months 4 quarterly payments All IBM Software brands 0% interest for 12 months 4 quarterly payments (25% of licenses new) Lotus Software 0% interest 24 or 36 mths (25% new licenses) 2 or 3 annual payments (excludes Lotus live) System X solution 0% interest 36 months, Fair market value lease 12 quarterly payments Storwise V7000 solution Can include other HW, SW, Services @ 0% Up to 30% with system X, 25% Storwise **Source: IBM Global Business Services, Global CFO Study 2010. . 10 April 20, 2012 © 2012 IBM Corporation
- 11. IGF UK & Ireland Tools available to IBM Partners – Rapid Online Financing (ROF) Access ArrowECS website Select “Partner Tools” Select “IBM Rapid On-line Financing” Follow instructions or contact Arrow ECS directly 11 April 20, 2012 © 2012 IBM Corporation
- 12. IGF UK & Ireland How to get the most out of working with IGF Lead with finance – Introduce your IGF Seller early in the sales cycle – Find out if your customer is existing IGF customer – Understand customer financial concerns & investment criteria – Exploit IGF Incentives and promotions Additional benefits – Grow deals – Increase your win chance – Reduce requirement for deep discounting – Pull deals forward into prior quarter 12 April 20, 2012 © 2012 IBM Corporation
- 13. IGF UK & Ireland Recession Buster IBM Certified Pre-Owned Equipment Automatic financing up to 36 months Transactions $250k and less "Recession Buster Sales offering" • targeted at credit challenged clients • budget or other credit constraints • prevented from acquiring new hardware solutions from IBM at this time • IGF has pre-approved clients to acquire up to $250k (USD) on select IBM Certified Pre-owned Equipment plus 10-20% of non-hardware. 13 April 20, 2012 © 2012 IBM Corporation
Editor's Notes
- IBM Global Financing is the world's largest, most experienced IT financier, with proven success in clients of all sizes, across all industries, financing all kinds of information technology. With an asset base of nearly $36 billion, we deliver financial services to 125,000 customers in more than 55 countries. IGF is a stable, proven partner that has been in the IT financing business more than 25 years and has financed close to $40 billion in IT assets for our clients in each of the last five years. Transition: Next, let’s spend a minute on IGF’s 3 lines of business our channel partners can leverage
- Since the third quarter of 2008, much of the world has experienced severe economic turmoil. The collapse of the US housing market, numerous bank failures and even the failure of several country economies have impacted businesses worldwide, both large and small. This of course resulted in limited access to credit in financial markets and with it more restrictions. In turn companies began to conserve cash to ensure core operation needs of the company were being met. Budgets were cut and spending frozen. Many projects therefore were either cancelled or postponed. Although economic conditions appear to be improving there is still uncertainty among businesses, credit remains tight and pressure on IT spending remains.
- IIBM recently carried out a CFO study in 2010, whereby 1900 CFOs were surveyed for their opinions on numerous matters. The survey revealed that CFOs are highly focused on: 1 - reducing costs, 2 - improving the return on capital investments, 3 - and optimizing cash flow. Financing can help address these challenges by providing access to fixed rate capital which helps them to preserve cash, improve liquidity, while fixed monthly payments help provide predictably to their overall budgeting process, which in turn helps optimize cash flow. Financing also helps CFOs optimize the equipment investments they have made with programmatic IT equipment refreshes that help lower maintenance and support costs in outlying years and provide flexible end of lease options. Finally, financing can also accelerate the ROI of their IT projects. By reducing upfront costs into predictable monthly payments, financing helps flatten costs so that they align more closely to expected benefits.
- So that’s what we can do for your Clients. Now, what can IBM Global Financing do for you? Were going to discuss several benefits you get when you build IGF solutions into your proposals First: financing helps you to improve your cash flow because we pay you within days, faster than most customers Next, your win rate rises, so you get more business from your valuable opportunity pipeline; And you can use financing alternatives in negotiations, when you are asked for your best price, so you strengthen your hand And in extremis, when the budget is really under pressure, we offer ICPE Running through all this is a way to help your business stand out and differentiate itself – and we know (because IDC tells us) that the availability of financing influences the choice of supplier for nearly thrre quarters of clients… Not only do we help you grow your business faster, and improve margins, we also pay you a financing fee. We’ll explore this in the charts that follow, and if you want to try and estimate the effects for your won business, then we have a ‘profit optimizer tool’ that will do just that, and give you an individual report.
- Clients can pay zero percent interest for 12 months on the IBM software they need most. There is no better way to help clients reduce the total cost of operation with exceptionally low rates, flexible payment plans, fast approvals and a single periodic payment. Business Partners can close more IBM software deals with this easy-to-bid-offer. It's as easy as it sounds: take the price of IBM software, divide by 12 (monthly) or 4 (quarterly) and propose that amount to their client. IGF is offering 0% financing over 12 months for credit qualified clients purchasing new IBM software licenses and first subscription and support charges; competitive rates are also available for 24 and 36-month payment terms.
- IIBM recently carried out a CFO study in 2010, whereby 1900 CFOs were surveyed for their opinions on numerous matters. The survey revealed that CFOs are highly focused on: 1 - reducing costs, 2 - improving the return on capital investments, 3 - and optimizing cash flow. Financing can help address these challenges by providing access to fixed rate capital which helps them to preserve cash, improve liquidity, while fixed monthly payments help provide predictably to their overall budgeting process, which in turn helps optimize cash flow. Financing also helps CFOs optimize the equipment investments they have made with programmatic IT equipment refreshes that help lower maintenance and support costs in outlying years and provide flexible end of lease options. Finally, financing can also accelerate the ROI of their IT projects. By reducing upfront costs into predictable monthly payments, financing helps flatten costs so that they align more closely to expected benefits.
- This is the quickest and most convenient route to get financed offers, and offers you can adjust as your proposal evolves.