Microsoft ended it’s five-year financing agreement with CIT, the struggling commercial lender, the Wall Street Journal reports.
The move will not affect customers’ existing financing contracts with CIT. New Microsoft customers will receive financing from other vendors.
Microsoft entered into a financing agreement wth CIT in the U.S. in 2007. CIT lent money to Microsoft customers to finance their purchases.
On the brink of bankruptcy, CIT recently received $3 billion in emergency funding from bondholders. But it’s still considered a high-risk for bankruptcy, says the WSJ.
CIT has been trying to hold on to its best customers during the downturn, but according to The Journal, “relationship with Microsoft hadn’t yet reached its full potential.”
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