BT has replaced long-standing
finance and leasing partner GE Capital Solutions with another
primary funder, it is understood.
At the time of going to press, BT
said it was unable to comment on the issue.
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According to the source, GE Capital
Solutions has been gradually reducing BT’s funding lines, and that
over the last “two to three months” BT has been replacing GE with
another international cross-sectoral lessor as primary funder.
“BT is a huge account, worth tens
of millions of pounds, so BT needed another big funder to step in,”
the source explained.
Another source said that BT’s
funding arrangements are renegotiated every 12 months, and that BT
has grown increasingly upset with the conditions that GE has
attached to the programme.
“It wouldn’t surprise me in the
slightest if BT got rid of GE,” he said. “Having spoken to a few
major vendors, GE has made changes.”
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By GlobalDataGE has indeed made changes to its
vendor-support teams, reducing headcounts and imposing stringent
requirements on underwriting criteria, the source added.
A spokesperson for GE Capital
Solutions said: “As a matter of policy GE Capital Solutions does
not discuss their customer and partner relationships
externally.”
Pre-tax profit at BT Leasing
Limited, which leases equipment both to other BT Group companies,
and to external third parties, was £29.2 million (€32.8 million) at
year-end in March 2008, although £31.5 million in taxes left the
company with a £2.3 million loss.
