ss_blog_claim=bd50edc517cf0b7549fe6b5f63b6b5f8 The SLS Business Finance Blog: Issues at Big Blue

Tuesday, June 17, 2008

Issues at Big Blue

IBM is the talk of the technology side of the commercial finance world. IBM has its own internal finance division known as IBM Global Finance. It is typically the # 1 choice for its thousands of partners, large and small, who have clients who need to finance their hardware, software, storage or networking gear purchases. Issues are coming out regarding their financing/lease contracts, confusing language in end of lease buyout options, lots of hidden fees and evergreening. Financial evergreening is when a client misses the window to determine whether or not they want to purchase the equipment or give it back at the end of the term and rather than convert to a month to month (which is the standard until the decision is made) they get charged for a whole additional year's worth of payments and have to hit the window the same time in the following year.

All these issues are at best sloppy and deceptive, and at worst, fraudulent and illegal. Dell got caught with their hand in the cookie jar and IBM may be as well despite their excellent reputation in the marketplace for products and services.

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