With services implementations, costs are typically heaviest at the front end, while the benefits don’t fully accrue until the project is implemented. A better approach can be to match cost outlays to expected benefits with flexible financing. When the project is financed and structured accordingly, costs and benefits track much more closely and large expenses can be turned into affordable monthly payments. This, in turn, makes the project more likely to be approved, and improve the ROI for your client. Our financing solutions generally focus on up-front, one-time charges or phased-in charges for multistage projects.
IT Services Financing solutions from IBM Global Financing can help client stay within budget by turning up-front costs into affordable monthly payments as well as:
- Improve budget management with predictable costs
- Match cash flow to expected business benefits
- Conserve cash for other strategic initiatives
And to help smooth out and consolidate the costs and management of multiyear maintenance projects IBM Global Financing can provide a customized, all-inclusive financial package.
Financing for multiyear maintenance - Customer Benefits
Multiyear prepayment contracts combined with IBM Global Financing offers clients a more predictable cash flow and can help lower total payments.
- Clients can lock in the current price longer for budgeting to avoid potential annual increases of 3 – 5%.
- Reduction in long term maintenance expense can result in up to 15% in savings over the life of the maintenance contract.
- Save time with a single approval instead of an annual request.
- Reduce administration and processing costs by paying a fixed invoice from IBM Global Financing.
- Customize payment structure to align the cost outlays to projected benefits.
- Clients have the ability to add and delete machines on IBM Pre-Paid Maintenance. The existing IGF invoice does not change.
- If IBM or the Business Partner provides a credit for machines removed from pre-paid maintenance,the client can arrange to have the credit applied to the IBM Global Financing invoice.
- Additional machines added to IBM Pre-Paid Maintenance can also be financed co-terminously with existing maintenance financing.
Financing for multiyear maintenance - Business Partner Benefits
- Receive your profit up front for the entire contract term.
- Keep credit lines open for additional new hardware business vs. ongoing maintenance contracts.
- Financing with IBM Global Financing may improve Business Partner DSO (Days Sales Outstanding).
- Greater leverage in attaining IBM/IGF business incentive targets, rebates and fees.
- Avoid competition for a longer period of time.
- Build a profitable annuity business with ongoing multi-term, prepayment renewals.
- Ask for renewals less frequently and avoid the costs of producing invoices and collecting payments.
Featured literature and useful links
Multiyear prepay maintenance with financing
Frequently asked questions
Do I need to become an expert on financing to sell this?
- No, after you've introduced the concept, then contact your IBM Global Financing representative to advance the opportunity.
What are the major benefits to promote with a client?
- Competitive rates.
- Improve budget management with predictable costs.
- Match cash flow to expected business benefits.
- Conserve cash for other strategic initiatives.
What channels does this apply to?
How do I quote or price a services or multiyear financing solution?
- Just use the Rapid Financing® tool to validate credit and create a quote after receiving a maintenance proposal from the IBM ServicesAssistant 'ISAT' online tool.
- Non-Rapid Financing users contact their distributor’s leasing coordinator or IBM Global Financing Representative for help in creating a financing proposal.
How do I become an IBM Global Financing Partner/Financing Associate?
IBM Global Financing offerings are provided through IBM Credit LLC in the United States and other IBM subsidiaries and divisions worldwide to qualified commercial and government clients. Rates are based on a client's credit rating, financing terms, offering type, equipment type and options, and may vary by country. Other restrictions may apply. Rates and offerings are subject to change, extension or withdrawal without notice.