IBM to offer 'stimulus funds' for clients

NEW YORK, USA:  IBM is offering $2 billion in financing to customers seeking to invest in broadband and healthcare technologies and are waiting to receive government stimulus funds.

The move comes as a weak economy and tighter credit make it difficult for companies to invest in large technology projects.

U.S. President Barack Obama in February signed a $787 billion stimulus plan that included support for investments in energy and healthcare technologies, but not all funds were available yet.

International Business Machines Corp said on Wednesday that its lending and leasing business, IBM Global Financing, would offer financing to clients investing in areas likely to receive stimulus spending, like smart grid technology.

"A lot of the government funding won't get to our clients until 2010 or later," said Richard Dicks, general manager of IBM Global Financing's North America business.

"This is a way to, if you will, jump-start those investments and jump-start the benefits."

IBM over the past decade has been shifting from hardware to high-margin software and services, including consulting and analytics.

Dicks said applicants for financing could include utilities firms adopting "smart meter" systems, hospitals switching to electronic medical records, or municipalities seeking IBM's consulting services to adopt broadband over power lines -- a technology that uses radio signals to connect Internet service over electric power lines.

The $2 billion in financing will be offered through plans including low interest rates, flexible payment options and deferred payment plans, IBM said. IBM Global Financing's assets in 2008 totaled $36 billion.

The company added that it would be prudent in vetting the credit of customers.