GE Capital Commercial Distribution Finance (:CDF), an operating unit of diversified conglomerate General Electric Company (GE), has recently extended its reach for working capital financing availability to small and middle market information technology (IT) solution providers. The strategic move is aimed at bridging the liquidity gap between product build-up and customer payment, and is likely to benefit the industry overall.
The CDF financing program facilitates fast credit approvals for qualified borrowers with simplified documentation requirements and expanded borrowing capacity. This enables borrowers to meet their immediate payment obligations with an additional facility of up to 100% advances for a revolving line of credit.
The IT firms can also purchase products directly from a pool of over 100 technology vendors or distributors that have financing arrangements with CDF, thereby mitigating operating risks. Furthermore, the financing program allows accounts receivable to be treated as collateral to meet short-term cash needs.
Leveraging on GE Capital’s round-the-clock online account management system, the IT solution providers can gain a competitive edge in the industry and successfully bid on large projects with long cycle-time. Secured lending from a reliable liquidity source will further lend them the necessary financial confidence.
General Electric is one of the largest and the most diversified technology and financial services corporations in the world. With products and services ranging from aircraft engines, power generation, water processing, and security technology to medical imaging, business and consumer financing, media content, and industrial products, the company serves over 100 million customers worldwide. The segments of the company include Power & Water, Oil & Gas, Energy Management, Aviation, Healthcare, Transportation, Home & Business Solutions, and GE Capital.
General Electric currently has a Zacks Rank #3 (Hold). Other companies in the industry that are worth mentioning include ITT Corp. (ITT), Compass Diversified Holdings (CODI) and Carlisle Companies Inc. (CSL), each having a Zacks Rank #2 (Buy).
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