Accounts Receivable Financing Program
As a Cisco reseller, you need ways to keep up with growth and meet increasing cash needs. The Accounts Receivable financing program from Cisco Systems Capital lets you establish a revolving credit line secured by receivables with advance rates up to 85 percent.
The Accounts Receivable financing program is designed for Cisco authorized resellers and partners who need increased bank credit lines or more borrowing availability. This credit line gives you financial flexibility because it is separate from your existing credit line with Cisco Systems Capital.
How it Works
This program allows Cisco resellers and partners to pursue larger sales through cash advances valued up to 80 - 85 percent of eligible receivables. It fuels growth by supplementing your cash needs and fully leveraging your current assets. You get the cash you need quickly via electronic transfer. Interest accrues only against the daily loan balance. The Accounts Receivable financing program is administrated for Cisco Systems Capital through a close affiliation with Deutsche Financial Services Corporation, a recognized financial leader.
Value Propositions
This financing program offers Cisco customers the following value propositions:
- Supplemental borrowing capacity—larger credit lines and incremental borrowing capacity
- Increased cash flow—turns future receivables into cash today to fund business growth
- Better liquidity—leverage inventory and receivables to fully maximize working capital
- Expertise from Industry Leaders—backed by Cisco Systems Capital, a proven technology leader and Deutsche Financial Services, a leader in the financial services industry
A Cisco authorized reseller needs to finance a government contract with multiple installation sites, but it has limited cash because it is awaiting a $5 million payment from another account. It uses the Accounts Receivable financing program to arrange for a $4 million (80-percent) cash advance against its receivable. The reseller uses the cash to hire subcontractors and pay the installation engineers.
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