Cisco extends credit into 2021
April 14, 2020
Cisco Systems has launched a $2.5 billion financing programme so its customers can defer 95 per cent of payments until 2021 at time when some are facing a cash crisis but also need more remote-work tools.
Many clients have adopted or boosted usage of video conferencing and virtual private network software, including Cisco’s Webex and AnyConnect. The surge in internet activity has also increased usage of networking equipment that Cisco also sells.
The financing offer, which requires no payment for three months and then 1 per cent of money owed in each of last five months of 2020, could help Cisco keep revenue flowing in a challenging economic climate.
Customers “are trying to reconcile how to make this investment to acquire solutions without knowing what’s around the corner,” Kristine Snow, senior vice president for financing arm Cisco Capital, said.
The company had $9.6 billion in loans and other instruments in its portfolio as of January. The company held about $8.5 billion in cash and equivalents at the time.