DETROIT - The Commercial Finance Group of GMAC Financial Services today announced the formation of "GMAC B2B Credit," commencing an aggressive Internet strategy that will utilize B2B trading exchanges to faster and more effectively provide financing to the commercial markets.
"The quickly changing landscape of the B2B marketplace provides an excellent opportunity for those who can deliver exceptional value to the supply chain processes that are being automated in these Internet exchanges," said Jay Craig, chief executive officer of the B2B initiative and a vice president at GMAC, a wholly owned subsidiary of General Motors Corporation. "We believe that GMAC B2B Credit's product offerings deliver such exceptional value."
Incorporating state-of-the-art-technology, industry expertise, and GMAC's international financial strength, GMAC B2B Credit will provide financing to middle-market and Fortune 500 companies through the Internet. Specifically, GMAC B2B Credit will establish strategic alliances with trading exchanges and their technology partners to provide real-time financing of transactions conducted through online, business-to-business markets. The Gartner Group, a consulting firm, has estimated that total B2B industry transactions will exceed $7 trillion in 2004.
GMAC Commercial Finance Group is one of the first and one of the largest commercial finance companies to commence this type of Internet initiative. "The competitive nature of the commercial lending business intensifies daily. We are confident that GMAC B2B Credit will give us a cutting-edge advantage," said Craig. GMAC Financial Services earned $1.5 billion in 1999, a 15 percent increase over the previous year, and held over $162 billion in company-owned assets and serviced automotive receivables. The Commercial Finance Group currently has $5.0 billion in outstanding loans to middle-market and Fortune 500 companies across a broad array of industries.
More information about GMAC B2B Credit is available at www.gmacb2bcredit.com.