News Release

Cisco and Cisco Capital Add $750 Million To Expand Global Credit Capacity for Channel Partners

Cisco Capital to Provide Competitive Financial Solutions to Help Channel Partners Capitalize on Rapidly Growing SMB Market
Apr 04, 2005

CISCO PARTNER SUMMIT 2005, VANCOUVER, April 4, 2005 - As part of its continuing effort to enable channel partners to grow their business and penetrate new markets, Cisco Systems® and Cisco Systems Capital®, a wholly owned subsidiary of Cisco Systems, today announced they will add $750 million in short-term growth capital to expand global credit capacity for channel partners.

In addition, Cisco Capital is entering the commercial and small and medium-sized business (SMB) market with the introduction of a new, simplified leasing program. The Cisco Capital Commercial Easy Lease Program provides competitive financing solutions to support and complement Cisco commercial/SMB growth initiatives. This program supplies Cisco channel partners with a valuable tool to capture leasing opportunities in the rapidly growing commercial/SMB market.

The $750 million in additional short-term growth capital includes $250 million from Cisco via 30-day open account terms and $500 million from Cisco Capital through third-party finance partners in the form of Inventory and Short-Term Project Finance programs. The $750 million will be used to expand the credit capacity of qualified Cisco channel partners. This commitment will also enhance the terms and expand the global reach of current programs offered by Cisco Capital third party finance partners, allowing channel partners to better manage cash flow from penetrating new markets, securing new customers and selling solutions.

"We saw an opportunity to make a significant impact in two key areas, the commercial/SMB market and the channel," said David Rogan, President, Cisco Systems Capital; Vice President, Cisco Systems. "By helping channel partners better serve the financial needs of our mutual commercial/SMB customers while at the same time providing select partners access to expanded credit capacity, Cisco is utilizing the competitive advantage of Cisco Capital to make an impact in both of these key growth areas."

Inventory/Distribution Finance Program

The Inventory and Short-Term Project Finance programs provide credit support for Cisco distributors and channel partners worldwide to help cash flow needs in longer project payment cycles. By working with global third-party financiers, Cisco Capital is able to provide qualified distributors and channel partners extended credit lines and/or payment timing to better support today's business needs. The $500 million short-term growth capital will provide incremental credit capacity to these programs, helping partners grow their business and improve profitability. In 2004, approximately 700 partners around the world participated in these programs taking advantage of more than $5 billion in third-party credit capacity.

Cisco Capital Commercial Easy Lease Program

The Cisco Capital Commercial Easy Lease Program provides financing tools and resources to help make Cisco channel partners more successful in the commercial/SMB markets around the world. Cisco channel partners are now able to provide their commercial/SMB customers a Cisco Capital leasing solution for transactions of $1,000 or more based on a highly automated, web enabled tool designed to expedite credit applications, approvals, documentation and funding.

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