The effort is aimed at easing cash flows for both customers and partners, on top of US$225m already pledged globally.
To help customers and partners navigate an evolving turbulent landscape, Cisco has introduced a new Business Resiliency Program through its vendor financing business Cisco Capital.
The program is designed to help mitigate financial challenges resulting from the Covid-19 pandemic, and includes US$2.5bn in financing to provide organizations with access to the solutions they need to keep their businesses running and productive, and to support their employees and communities during these unprecedented times.
A top concern for Cisco customers and partners in the current environment is cash flow. The new Business Resiliency Program includes an up-front 90-day payment holiday and allows a customer to defer 95% 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, 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 5% of partner provided services, such as installation.
Said Chuck Robbins, Cisco’s Chairman and CEO: “Cisco’s customers and partners are under enormous pressure to keep their businesses connected while remaining productive and secure. 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 program also offers support to Cisco’s 60,000 partner ecosystem. The new program will help partners provide an additional solution to better serve customers, without any change to their own financial situation, in this challenging business environment. It will accelerate their sales cycles and allow partners to offer their customers payment solutions to improve their cash flow management.
In addition, Cisco Capital is supporting customers and partners through Cisco Refresh, the Cisco certified remanufactured product portfolio, to help with budget constraints. The solution offers a wider range of products and further discounts and promotions to help customers and partners receive competitivity-priced, pre-owned products quickly and easily. Cisco Refresh solutions are also eligible for the Business Resiliency Program where 95% of the cost can be deferred until 2021.
Said Will Townsend, Senior Analyst, Networking Infrastructure, Moor Insights and Strategy: “This is a valuable offering by Cisco. Through my countless discussions with organizations, balancing cash flow while maintaining robust network operations is critical given the impact of COVID-19. I continue to be impressed with Cisco’s proactive strategy to enable its customers, partners, employees and the community overall to maintain productivity in these trying times.”
Separately, Cisco had recently committed US$225m in cash, in-kind, and planned-giving to support both the global and local response for the crisis. This includes technology and financial support for non-profits, first responders and governments.
Cisco is also empowering customers and partners with its free Webex and Security offers enabling them to stay securely connected and productive during this time.