GE Sees Growing Use of Inventory Financing by Tech Firms
GE Capital said its Commercial Distribution Finance (CDF) business saw an increase of more than 10% in financing volume in the information technology (IT) channel in 2012, and it expects that trend to continue this year.
GE said this is, in part, because of wider adoption of manufacturer-approved financing programs that offer inventory working capital within the IT industry, both domestically and internationally, easing cash flow challenges for value-added resellers (VARs), distributors and system integrators.
“The increase in vendor financing coverage supports the dynamic landscape of the high-tech industry,” said Tom Grathwohl, CDF’s senior managing director of global and structured solutions. “As financing options expand from the U.S. and Canada into Latin America, Europe and Asia, particularly China, both industry-leading vendors and emerging innovators will benefit.”