IBM Takes Wraps Off 'Buy Now, Pay Later' Financing

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 percent 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.

News source: Reuters - IBM Takes Wraps Off 'Buy Now, Pay Later' Financing

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