IBM Establishes Inventory Financing Solution for Avnet Technology Solutions Customers in the UK
ARMONK, NY - 04 Dec 2006: IBM Global Financing, the lending and leasing division of IBM (NYSE: IBM) today announced that it has established an inventory financing solution for customers of Avnet Technology Solutions Ltd -- Partner Solutions (UK), a subsidiary of Avnet Inc. (NYSE: AVT).
Under the terms of the deal, IBM Global Financing will provide Inventory Financing, a specialized Commercial Financing offering created specifically to help resellers take control of their finances by changing the way they pay IT suppliers, such as Avnet. This offering enables resellers to take longer to pay, whilst ensuring the supplier is still paid to terms. Avnet’s customers can therefore achieve payment from their downstream customers before needing to pay their supplier. Avnet however, can maintain their payment terms with a guaranteed payment from IBM Global Financing. This means assured cash flow for Avnet as well as improved cash flow for their customers.
“Inventory financing fits well within Avnet’s existing credit control processes,” said Laurence Cann, Credit Control Manager, Avnet Technology Solutions in the UK. “It reduces the workload of credit control as well as credit assessment for customers that sign up. It also provides access to IBM Global Financing solutions for transactions above normal credit lines and is now the credit solution of choice within Avnet.”
IBM Global Financing continues to add more Avnet customers to this facility daily. Each customer is given a credit line and under a contract with IBM Global Financing, agrees to make payment on a given date between 15 and 30 days beyond Avnet’s normal trading terms.
“Extended terms are becoming a key differentiator for distributors and indicates a level of customer support which is rewarded with increased revenues and customer loyalty,” said Paul Foulkes, vice president of IBM Global Financing. “Inventory financing enables Avnet’s customers to choose their supplier based on products, price and service rather than credit terms or availability.”
IBM Global Financing (IGF), the financing business segment of IBM and the world’s premier single-source provider for multivendor IT financing solutions, serves commercial clients ranging from small businesses to the majority of the Fortune 100. With assets of $31 billion worldwide, IGF provides project financing, commercial financing and asset-recovery services to 125,000 clients in more than 40 countries. Additional information can be found at http://www-03.ibm.com/financing/us/
About Avnet Technology Solutions
Avnet Technology Solutions markets the corporate and embedded systems of leading international computer producers and software providers. As a global sales and marketing organization, Avnet Technology Solutions has a local presence in 36 countries, with different marketing units for specific customer segments. These clients include value added resellers (VARs), system vendors, system integrators and OEMs. Avnet Technology Solutions is a division of Avnet Inc. and posts annual sales in excess of $ 4 billion. Avnet Inc. (NYSE: AVT) is one of the largest international distributors of electronic components and computer products and a leader in the field of technology marketing and services with annual sales revenues in the amount of $ 10 billion. Further information is available in the internet at www.ats.avnet.com.
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