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Wednesday, July 22, 2009

Microsoft ends vendor finance deal with CIT

SEATTLE, July 21 (Reuters) - Microsoft Corp (MSFT.O) said on Tuesday it had terminated a vendor-financing deal with lender CIT Group (CIT.N), but declined to give further details.

CIT makes loans to small and medium-sized businesses to buy equipment and it faces crushing losses on bad loans. The lender is hoping to stave off bankruptcy protection with emergency financing from private investors secured on Monday.

Microsoft did not put a value on the loans CIT had issued to customers under its pact.

"Microsoft works with a number of financial institutions, including CIT, that provide vendor services and we continue to offer financing to qualified customers as a way to pay for software and services," said Microsoft in a statement. "Microsoft Financing has contingency plans in place to protect our customers and partners needs." (Reporting by Bill Rigby; editing by Carol Bishopric).

Source: reuters.com

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