IBM yesterday said that its lending unit, IBM Global Financing (IGF), had signed a financing deal with Advanced Micro Devices, to provide the semiconductor maker's distributors cash and credit against accounts receivable (commonly referred to as 'factoring') at the Tianjin Binhai New Area, which accounts for 21 per cent of China's GNP.
IBM's financing arm has been providing IT leasing and financing to clients across many industries in China for over 10 years. It also offers leasing for IBM products in the country.
Late last year, the Tianjin government provided IBM Global Financing an exclusive license to provide accounts-receivable lending in the Tianjin Binhai New Area, which serves as a major hub linking both north and south China, and connects China with northeast Asia.
More than 70 of the world's leading 500 corporations, such as Motorola, Toyota and Samsung have opened offices in the Area, whuich is also one of China's largest education and high-tech centers, with 25 universities and more than 140 research institutes.
"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.
Tianjin's factoring license to IBM is a first of its kind in China, Bernardis disclosed.