GE Capital, Commercial Distribution Finance (CDF) on Wednesday said it will offer working capital financing to small and middle market information technology (IT) solution providers.
SMB IT solution providers can utilize CDF working capital to meet immediate payment obligations, while it also offers benefits such as streamlined credit approvals, simplified documentation requirements and expanded borrowing capacity.
In addition, IT solution providers can purchase products from a pool of more than 100 technology vendors that have financing arrangements with CDF or distributors whose products may also be financed by CDF.
Borrowers may be eligible for a revolving line of credit with advance rates of up to 100 percent. They may also qualify for extended and, in some cases, interest-free financing that is subsidized by the technology vendors.
The main benefit is that solution providers that use working capital solutions may be able to reduce bank borrowing costs. Moreover, they may benefit from a more efficient billing and collections process, said GE in a statement.
GE said CDF provided more than $18 billion in financing to more than 1,300 IT channel partners globally in 2013.