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Short Term Financing AdvantagesManage high growth - Increase your purchasingpower and ensure timely deliveries of theequipment you purchase.Flexibility - Expenditures can be matched tobudgetary levels. Your business conditions - cashflow, equipment needs and company growth ratescan be managed more effectively.Easy - Financing with Cisco Systems Capitaltypically requires less documentation than bankfinancing.Improve your Cisco relationship - If you pay foryour purchases within the terms of your Cisco
Long Term Financing (Leasing)Advantages•Lower cost - Leasing conserves capital. Monthlylease payments are less than monthly purchasepayments or monthly depreciation plus interestexpense.•Flexibility - Payments can be matched to budgetarylevels. Your business conditions - cash flow,equipment needs and tax situation - help define theterms of your lease.•Protection against obsolescence - The lease canbe structured to include upgrades and partial orcomplete equipment swaps either at mid-term or at
•Eliminates risk - The equipment can be returnedat the end of the lease without regard for its bookvalue or the expense of proper disposal.•Convenient - Leasing provides on-the-spot, one-stop financing for a total solution. Hardware,software, maintenance and asset management canbe included in the lease.•Easy - Leasing typically requires lessdocumentation than bank financing and fewerinternal approvals than a capital purchase.•Protects against inflation - Aggressive fixed-ratepricing allows for protection against inflationwhereas variable-rate leases let you takeadvantage of falling interest rates.
•Nowadays, loans have been packaged for resale.This means that the debt has been bought by aninvestor from the bank. These bonds are sold toinvestors by financial corporations who haveexceeded beyond their expenditures.•The investor can now collect all the interests andbe sold again through a secondary market.•Banks serve as facilitators to companies in theprovision of credit and mutual funds.