IBM has introduced its customer financing services - IBM Global Financing (IGF) - to the local market. The company will offer financing for both IBM and non-IBM IT solutions.
"We are offering financing around solutions, around multiple products," says Mark Harris, MD of IBM South Africa. Harris says IBM is rated third for financing and leasing in the US.
IBM Global Financing South Africa says it has already signed a deal worth $1.2 million - on software exclusively - and is negotiating two more deals worth a total of $6 million. In addition, IGF says quotes have been given to a substantial number of customers.
Cecilia Jofre-Gaddin, who heads the new division, says: "You should see us as an IT bank." She adds that the company`s biggest draw will be upgrade terms, allowing customers to avoid high investments in legacy technology.
"IGF has had a subsidiary in the US for 18 years now, and we have $42 billion in assets," says Jofre-Gaddin.
IGF SA has launched with two first quarter promotions on selected products. The first offers a six-month interest-free payment holiday, and the second starts at base rates, below the market average.
Janice Knight, Global Financing programme manager for the region who has been responsible for co-ordinating the South African division, comments: "Extensive research in 2000 showed that South African existing and potential end-users felt an urgent need for our financing services.
"Unlike banks and other financial institutions, we can focus exclusively on a single service type - financing of IT - and so are able to offer competitive rates," continues Knight. "Also, we utilise the J-bar (Johannesburg Interbank Rates) rather than prime as our benchmark rate."
IBM will finance both IBM and non-IBM software and hardware for values of more than R250 000.
The five-person division, headed up by Jofre-Gaddin, includes two financially specialised sales people, a credit manager and an administrator.
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