IBM to launch financing business in China

Computer-manufacturer IBM announced it will launch a financing business in China, the Wall Street Journal reported. The firm will provide accounts-receivable lending, or factoring, as part of its move into the service, consulting and financing business in China. Chip-maker Advanced Micro Devices (ADM) will be its first client. IBM will provide the company with up to four months of financing while they wait for payment from customers. The deal should result in "hundreds of millions" of dollars in profit for IBM, which has been financing IT equipment for 30 years. in 2008, the company’s global financing arm had an asset base of US$36million, one-third of which came from commercial financing, including factoring. IBM has been granted an exclusive license to provide accounts-recievable funding in Tianjin Binhai New Area, a special economic zone in Tianjin.