Presented by Dorothy Ward, Vendor/Alliances Manager

IBM Global Financing – Americas

Education module

1 IBM Global Financing

What is financing 2

Competitive comparison 4

Benefits to your client and to you 3

The so-called “0% lease”5

What to offer 6

Where to learn more 6

Agenda

to provide financing for clients

Partner with IBM Global Financing

World’s largest, most experienced IT financier $34 billion in assets managed across 50 countries 125,000 clients

– Small businesses to the world’s largest organizations

– Across all industries 25 years’ experience

Lease/loans For hardware, software, services From $1,000 to… Acquired through any authorized sales channel

– Seller sets their price; IBM Global Financing pays it up front and collects from the client over time

Lease pay to use equipment the financier owns

Loan pay back money the financier provided

Money loaned may be used to pay software license, charges for services, purchase equipment the client would own, etc.

Payments reflect ... fully paying out the original cost

paying part of the original cost, not the residual (future resale) value

End of lease options

Client may purchase at end of lease for ...

bargain price (e.g., $1) then-current fair market value

Good for clients who anticipate ...

keeping the equipment upgrading or replacing equipment

purchase, send equipment to financier,

continue payments or renew (refinance)

Fair Market ValueFull Payout

lowest payment

“Financing” is leasing and loans

Source: Equipment Leasing Association State Of The Industry Survey

Ease, Convenience,

Flexibility

13%

Simplify budgeting and approvals Predictable payments vs. “spikes” of purchase Easier approval when paid from operating

versus capital budget Flexibility to return/upgrade/replace

Latest Technology

9%

Maintenance, Options, Cost

13%

Dollar Value

17%

Latest technology at lowest cost, risk $1 budget buys $3 equipment on lease Vehicle to refresh technology in future Client has no resale value risk or disposal responsibility

Tax Benefits

13%

Tax benefits

Faster tax write-off than if purchased Deduct entire lease payment immediately vs. only the interest portion of loan payment

Minimize cash flow impact Preserves cash and credit lines for other

needs, opportunities More affordable than outright purchase

Cash Flow

35%

Benefits of financing to your client

More sales, larger sales up front Upgrade/replacement sales sooner Closer client relationships and loyalty “Pay as used” is an easier sell You are seen as a business solution,

not just a technology provider Higher profits

– Addresses affordability without discounting

– Helps focus on the business solution rather than

piece-part purchase price Improved Channel Partner health

– Partner enjoys all benefits listed above

– IBM Global Financing pays the Partner’s invoice…faster than their client would

– IBM Global Financing assumes the client’s credit risk

Benefits to YOU

IBM study:

For every $1 leased, clients bought as much as $5 more over the next 2 years.

Competitive comparison

Compelling ratesAmple access to low-cost funds High residual values, due to asset recovery expertise

Unmatched asset recovery services 40,000 processed used/idle items each week

IT financing specialists, proven success25 years in IT financing, 50 countries, 125,000 clientsTwice the size of our nearest IT financing competitor

Variety of products, servicesFrom simple lease for 1 item…to complex financial packagingFrom seasonal rental…to multi-year lease From acquire…to ‘retire’ (resale or safe, secure disposal)

Total solution financingHardware, software, services...and more

0% lease rate* Keep your solution up-to-date with a special 0% lease rate!

Spread the cost over terms of 24, 36, 48 or 60 months and then simply send them back to us, making room for the newest technology.

It’s easy to determine your monthly payment:

just divide your total equipment cost by the number of months in your lease term!

* Implicit lease rate, assuming lessee does not exercise a fair market value purchase option at the end of the lease term and timely returns the leased equipment to xxxxx Financial Services at the end of the lease term

Client pays the full cost of the equipment over time, e.g., $100K / 24 months or

$4,167 per month

But then does NOT own it !

Client must pay MORE (fair market value) to own it

Typical 24 month FMV payment with IBM Global Financing? About $3800 per month ...“less than 0%”

The so-called “0% lease” explained…

Simple, short contract Streamlined handling Instant payment estimate at

ibm.com/financing

Click “Calculators” 1-hour turnaround

Fast, simple financing for smaller opportunities

IBM Financing Advantage

The easy way to get what you need (and get rid of what you don’t)

Flexible billing including:– Payment deferrals or “rent holidays”

– Seasonal/other tailored payment streams

– Quarterly “sweeps” (aggregate multiple buysfrom multiple suppliers into one lease)

...and more

Complete IT “financial outsourcing” for clients over many years to fund their IT strategy

Tools for clients to track assets, leases Buyback and disposal services

– Unique solutions for large quantities, various equipment types, multiple locations

Customized financial solutions for large opportunities

Engage your IBM Global Financing

rep EARLY in the sell cycle

About 3% of the purchase price, per month

e.g., Finance $100,000 for $3,000 per month

When the client first says “Sounds good – about how much does it cost?”

…lead with financing!

This is very rough, conservative, “ballpark” pricing for a 3-year term 2-year term will be higher, 5-year term lower Loans cost more than leases Full payout leases cost more than fair market value leases Equipment types, customer creditworthiness, etc. all affect price

More information

Sales Tools portal Sales collateral Contacts

…and more!