IBM Launches Flexible Credit Program For Small Resellers

The Web-based offering allows users in need of small credit lines to make purchases from authorized suppliers on a revolving line of credit, with an option to pay off the manufacturer or supplier before the term's expiration.

"We had shied away from a previous small credit line financing program a couple of years ago because we didn't feel we had a competitive offering," says Ron Bachner, business development executive at IBM Global Financing. "It was too labor intensive for partners and for us."

But the new IBM Flexible Credit Program takes another shot at providing an easy-to-use revolving credit program for partners.

"It allows partners in need of small credit lines to apply via the Web-based tool and receive credit approval in minutes," Bachner says.

Partners can also view documentation online and use electronic signatures to authenticate documents. The program, Bachner says, takes the application process from days to minutes, and is available 24/7.

Users set up which suppliers they want to purchase from, and purchasing invoices are set up online with the revolving line of credit.

"It gives customers the option to pay back at the end of the subsidized period, or they can flex-pay the invoice and pay one-third and then extend out the other two-thirds over the next 60 days," Bachner says.

He adds that this is typically a big cash flow enhancer, as partners can measure how cash is running in their businesses, and the line of credit can help with large receivables and leases that haven't been settled.

The program can process applications for credit lines of up to $500,000 online and offers no-interest payment charges for financing periods of 30, 45 or 60 days. Unpaid balances will accrue low interest rates with flexible payment options.

The program is being piloted by Tech Data for its U.S. resellers, but Bachner says the plan is to take it out to many other manufacturers, distributors and partners -- wherever it's applicable.