IBM offers "buy now, pay later" financing on services

By : |January 11, 2002 0



NEW YORK: Computer maker International Business Machines Corp. on Friday said
it is offering for the first time "buy now, pay later" financing on
some of its computer services.

Low-rate financing may have been popularized by automakers and appliance
dealers, but in the past year, computer makers have been using financing options
like "no money down" and zero-interest payments amid an economic
downturn.

IBM competitors such as Dell Computer Corp. and Compaq Computer Corp. also
have offered special financing plans during the past few months.

IBM said the 90-day deferral is available during the first quarter for
business integration services, which includes consulting on areas like
e-business, and integrated technology services, which covers computer systems
infrastructure, such as disaster recovery operations.

"It’s one of the many creative paths we’re taking to help customers
invest in IT today to remain competitive and to help them create a solid
e-business infrastructure, " said Catherine Manion, general manager of IBM
Global Financing.

IBM also said it plans to offer a 4.6 per cent interest rate on most
hardware, including server computers, personal computers, and storage systems,
to qualified customers during the quarter. IBM was offering a zero-down option
on some hardware during the fourth quarter that is no longer in place.

Both offers are effective in the United States, Canada and parts of Latin
America for customers with transactions between $50,000 and $1 million.

(C) Reuters Limited.

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