© 2007 ibm corporation ibm global financing 1 teaming with business partners to accelerate business...

© 2007 IBM Corporation

IBM Global Financing

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Teaming with Business Partners to Accelerate Business and Increase Profitability



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Financing can help you differentiate

“….in many situations, technology leasing offers greater operational, strategic, and financial benefits than outright ownership.”

—William Roch, IDC, April, 2005

“…limited funding for investment is the second most significant obstacle to innovation.”

—765 CEOs in IBM’s 2006 CEO study



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About IBM Global Financing

Experts in financing technology and solutions Unlike banks, we focus primarily on solution and technology

financing We provide single-source financing that helps clients

acquire business services and technology services, hardware and software ― IBM and non-IBM

We offer flexible financing with competitive rates to businesses of all sizes and across all industries

We offer complete financial plans for the lifecycle of an investment

The world’s largest provider of technology financing We have a worldwide asset base of more than US$34 billion and

serve more than 125,000 clients in over 50 countries We provide financing for 91 of the 100 biggest U.S. corporations We are a primary provider of technology financing for small and

mid-size businesses



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IBM Global Financing Value Propositions

Close More Business

Resellers &

Solution Providers

Improved Cash Flow

Improved Profitability

Increased Customer Satisfaction

Increased Customer Loyalty

Increased Account Control

Reduced Ownership Costs



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IBM Global Financing Value Propositions for Resellers/Solution Providers

Close More Business Meet all your customers needs in terms of better cash management, flexible payment options, budget

constraints, asset management, disposal and technology upgrades Fit more into customer's budget and help them build a strong business case for their investment IBM Global Financing Asset Recovery Solutions can simplify the process of recycling, selling or

disposing of your clients’ retired PCs, to help them make room for new PCs Leverage the “Rapid Online Financing” tool to complete simple financing transactions under $500K

from start to finish, in less than one hour Mid-lease sales opportunities lead to up-selling and cross-selling, driving incremental sales volume

and revenue

Improved Cash Flow Settle with IBM directly and get paid faster Reduce Days Sales Outstanding (DSO), to free up your line of credit for other business requirements

and minimize interest expense

Improved Profitability Fees paid out when financing is incorporated in the contract Maintain higher margins by leveraging the low monthly payment resulting from Fair Market Value

financing Increase client purchasing power, providing more opportunities for value-added sales of hardware,

software and services



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IBM Global Financing Value Propositions for Resellers/Solution Providers (cont’d)

Increased Customer Satisfaction/Loyalty Provide customers with low monthly payments and a lower Total Cost of Usage (TCU) Provide one stop shopping for your customer - Ability to finance a multifaceted IT soluton...through a

single contract Facilitate customer growth

– An IBM Global Financing customer grows 30-50% faster than a purchase customer

Increased Account Control Maintain the "financial footprint" for increased account control and insight into budget and timing Financing provides additional customer touch opportunities Minimize competitive exposure with 3rd party lessors Create an 'impending event' for hardware decisions, increasing both marketing focus and

predictability

Reduced ownership costs Since IBM Global Financing takes a residual value risk in an FMV lease, the cost of ownership can be

reduced and that savings may either be passed on in it's entirety to your customer or it will enable you to avoid discounting to margins that have poor yields



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Using IBM Global Financing resources to help IBM Business Partners grow

Preserves Business Partner working capital

Helps Business Partners serve their clients with IBM Global Financing competitive offerings

Offers Business Partners access to IBM’s global reach and presence through worldwide offerings and financing in multiple countries

Shifts the credit risk to IBM

Provides Business Partners with comprehensive online management tools



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IBM Global Financing—The first choice for IBM Business Partners

IBM Global Financing is a primary technology-financing partner used by IBM Business Partners

Financing is critical to the sales efforts of IBM Business Partners Earn incentives from IBM Global Financing Increase follow-on sales with ongoing leasing relationships Reduce sales inhibitors by eliminating large, up-front payments Reduce “Days Sales Outstanding” (DSO) and get the full revenue from the

acquisition from IGF immediately upon customer acceptance

The leader in partner satisfaction: Business Partners consistently rate IBM Global Financing’s support and responsiveness better than other working capital providers



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Small Ticket Financing: Financing Advantage

A “One-Stop” Financing Solutionbased upon ”Speed & Simplicity”

Transactions up to $300,000 All “IT” Products and Brands Reseller Fee Program

1% Fee paid to the BP for Total Amount Financed Aggressive Software & Services Financing

100% Soft Content Financing Available

Partnering with LGI Financial Solutions Full Support: From quotes to contracts to funding (800) 727-4271 www.financingadv.com / [email protected]



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IBM Asset Recovery Solutions

Asset Recovery Solutions (ARS) is:–A global solution for asset recovery which minimizes the risks, the costs, and

the hassle associated with IT asset disposition, and maximizes the value returned for marketable IT assets – for your customers’ assets as well as your own.

Simple, secure and hassle-free disposalGlobal availabilitySingle point of contact for worldwide project managementCreative, flexible solutions for all IT equipment – IBM and non-IBMOnline web tool with immediate online quotes - offers buyback quotes for

quantities from 1+–http://www-1.ibm.com/financing/dispose/ or 1-888-SHOP-IBM x7165

• Business Partner 3% Lead Referral Fee for providing customer leads that close in an ARS contract

http://www-03.ibm.com/financing/partner/us/recovery/referralfee.html



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Global Asset Recovery – SALES FLASH

http://www-03.ibm.com/financing/gars_salesflash/garsnewsflash_v3.html



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And we are enhancing our customer Value Proposition…….


© 2007 IBM Corporation13

PC Lifecycle Management

Increasingly, customers are looking beyond the up front purchase price of PCs to evaluate the TCU (Total Cost of Usage)

When you bring IBM Global Financing early into the sell cycle, you can assure that you are addressing the essential PC Lifecycle components required for a successful sales campaign



Ride the IBM Global Financing PC Lifecycle to Success

Setting the strategy

How to organize the deployment

Multi-vendor and/or multi-country planning

Clearing out the older existing PC inventory

Selling older equipment that still has value

Disposing of worthless equipment

Financing alternatives

Availability of capital

Lowest cost of use

Preferred accounting treatment

Optimal useful life

How long to keep PCs

Minimizing the total cost of use

Identifying and controlling costs throughout the entire PC Lifecycle

Management of PC assets

Knowing where assets are, what’s on them, ensuring timely refreshes

Executing a plan based on optimal use

Disposing of PCs

Compliance with multiple environmental regulations

Protection against unwanted and costly data security breaches



How to work with IBM Global Financing

Visit our Web site:http://www-03.ibm.com/financing/us/

Locate an IBM Global Financing representativehttps://www-03.ibm.com/financing/us/contact/

© 2007 ibm corporation ibm global financing 1 teaming with business partners to accelerate business...

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