Manage high growth - Increase your purchasing power and ensure timely deliveries of the equipment you purchase.
Flexibility - Expenditures can be matched to budgetary levels. Your business conditions - cash flow, equipment needs and company growth rates can be managed more effectively.
Easy - Financing with Cisco Systems Capital typically requires less documentation than bank financing.
Improve your Cisco relationship - If you pay for your purchases within the terms of your Cisco agreement, you can foster a stronger relationship with Cisco.
Lower cost - Leasing conserves capital. Monthly lease payments are less than monthly purchase payments or monthly depreciation plus interest expense.
Flexibility - Payments can be matched to budgetary levels. Your business conditions - cash flow, equipment needs and tax situation - help define the terms of your lease.
Protection against obsolescence - The lease can be structured to include upgrades and partial or complete equipment swaps either at mid-term or at lease-end.
Eliminates risk - The equipment can be returned at the end
of the lease without regard for its book value or the expense of
Convenient - Leasing provides on-the-spot, one-stop
financing for a total solution. Hardware, software, maintenance
and asset management can be included in the lease.
Easy - Leasing typically requires less documentation
than bank financing and fewer internal approvals than a capital
Protects against inflation - Aggressive fixed-rate
pricing allows for protection against inflation whereas variable-rate
leases let you take advantage of falling interest rates.
Other Advantages -
- Ability to customize payment schedules
- Lease payments are fixed
- Improved return on assets (ROA)
- No public disclosures
- Lease rental payments are made from pre-tax rather than after-tax
- Impact on book earnings