The Tianjin Government provided IBM Global Financing, the lending and leasing business segment of IBM an exclusive license to provide accounts-receivable lending (commonly referred to as factoring) in the Tianjin Binhai New Area to provide support for innovative business initiatives.
With this new factoring license, IBM recently established a new operating entity called IBM Factoring (China). This new IBM entity will help businesses operating in the country smooth out the time lag between invoice and payment. IBM Factoring (China) will purchase receivables resulting from sales by AMD to its main technology distributors. The entity will pay AMD up front for inventory delivered to its distributor network and extend payment terms to these distributors on a flexible schedule.
Mario Bernardis, general manager of worldwide commercial financing at IBM Global Financing, said: “One of the keys to economic recovery is the successful partnering of private and public sectors. 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. We are grateful to the Tianjin Administrative Bureau of Industry and Commerce for granting IBM this factoring license – a first of its kind in China.”
Devinder Kumar, senior vice president, corporate controller and treasurer at AMD, said: “This customer-focused financing arrangement can facilitate the flow of AMD’s market-leading solutions throughout the China marketplace. Working with IBM Global Financing, our customers in the region can focus on leveraging our technology towards greater profitability and resilience, and let the payment cycle run smoothly in the background.”
