Today, Cisco announced a $2.5 billion financing program that lets its customers defer 95% of payments until 2021.
Offered through Cisco Capital, the vendor financing business within Cisco, and designed to help mitigate financial challenges resulting from the Covid-19 pandemic, this program includes $2.5 billion in financing to provide organizations with access to the solutions they need to keep their businesses running during these unprecedented times.
"Cisco's customers and partners are under enormous pressure to keep their businesses connected while remaining productive and secure," said Chuck Robbins, Chairman and CEO of Cisco. "Whether it's technology, financing or helping those most in need, Cisco is committed to working together to fight this pandemic on every front."
The new Business Resiliency Program offered by Cisco Capital includes an up-front 90-day payment holiday and allows a customer to defer 95 percent of the cost of a new product or solution until 2021, which in turn protects their business and increases their existing cash flow. Starting in January 2021, Cisco customers would then make a monthly payment based on the total financed amount and the remaining term of the financing. All Cisco solutions are eligible for this program, including hardware, software and services as well as up to five percent of partner provided services, such as installation.
The program also offers support to Cisco’s 60,000 partner ecosystem. The Business Resiliency Program will help partners provide an additional solution to better serve customers, without any change to their own financial situation. It will accelerate their sales cycles and allow partners to offer their customers payment solutions to better manage their cash flow.
In addition, Cisco Capital is supporting its customers and partners through Cisco Refresh, the Cisco certified remanufactured product portfolio, to help with budget constraints. Cisco Refresh offers a wider range of products and further discounts and promotions to help Cisco's customers receive pre-owned products easily. Cisco Refresh solutions are also eligible for the Business Resiliency Program where 95 percent of the cost can be deferred until 2021.