But the plan, which comes at a time where the global credit market crisis has led to tighter lending conditions, makes the proposition risky for Microsoft.
NEW YORK (Reuters) - Microsoft Corp <MSFT.O> plans to raise the amount it lends to small-business customers by as much as 60 percent, as they find it increasingly tough to finance high-tech buys amid the global credit crunch, the Wall Street Journal reported on Tuesday.
But the plan, which comes at a time where the global credit market crisis has led to tighter lending conditions, makes the proposition risky for Microsoft.
The company has said that the number of defaulting loans will probably increase, the newspaper said.
Microsoft said that in 2008, it expects to issue $1.25 billion in loans -- about 2 percent of its expected fiscal 2008 revenue -- up from the $780 million it lent last year, adding that the move may help bolster the sales channel.
!ADVERTISEMENT!Microsoft offers loans between $100,000 and $500,000, which is a "sweet spot for small businesses," general manager of Microsoft Financing Brian Madison told the Journal.
Microsoft was not immediately available for comment.
(Reporting by Aarthi Sivaraman, Editing by Jacqueline Wong)
