CIT Bankruptcy of US commercial lenders will hurt technology industry

Introduction: Foreign Media July 17 published an analysis of the article said that if the U.S. business lender CIT declared bankruptcy, Microsoft and Dell and other major technology companies will be hit. These companies rely on CIT to provide financing for many companies to buy their technology products.　　But Microsoft and Dell have said they can deal with any situation in CIT. If CIT, the US commercial lender, is declared bankrupt, it could hit major technology companies such as Microsoft and Dell.　　These companies rely on CIT to provide financing for many companies to buy their technology products.　　While some technology companies, such as IBM, Cisco and Oracle, use their cash reserves to finance customers ' purchases, more technology companies are opting to work with outside companies such as CIT to get the loans they need, typically through a division such as Microsoft financing. Loan financing is an increasingly common tool for companies wishing to buy technology products, because it allows them to postpone repayment, in some cases the purchase amount will reach millions of dollars. Data from IDC, a research firm, showed that about 88 billion U.S. dollars of computer hardware and software purchases in 2008 came from commercial loans, accounting for about 14% of all such purchases.　　IDC says the amount of financing for technology purchases is growing at a rate of 8% a year. CIT is targeting the technology industry to provide financing services.　　Over the past few years, CIT has acquired a technology-based financing business from rivals, and has established close relationships with reputable technology companies. Dell has established a joint venture capital company with CIT, but Dell bought CIT's stake in December 2007. The company is still relying on CIT to finance some of its clients. This week Dell CFO Blaine Graden Brian Gladden said the company also has 35 million of dollars in receivables from CIT.　　He also said that Dell had already reduced its business with CIT and was able to deal with any situation in CIT. At the end of 2007, CIT announced an agreement to finance Microsoft's customers in the US and other countries. Microsoft declined to disclose the size of its business with CIT, but previously reported that it provided customers with about $1 billion worth of procurement financing each year.　　Microsoft financing has a contingency plan to protect the needs of our customers and partners, said Stacie Sloane, the Star Cislon director. CIT also operates the financing arm of Avaya, a communications equipment maker. Avaya A spokesman said the company will continue to work with CIT to provide procurement financing for its clients, although Avaya also has other financing providers. (Yi Fei)