Draft Purchase Financing Program
As a rapidly growing business in Asia, you know that cash is scarce and credit is tight. Financial constraints are hindering your ability to grow as fast as you can. The right financing program might remove the issue of money from your purchasing decisions. At Cisco Systems Capital we understand the unique business challenges you face because we specialize in financing networks. We offer you the innovative, flexible financial services you need—at competitive rates.

How it Works
For those of you who may need extended terms on large orders, the Draft Purchase Program (DDP) from Cisco Capital allows you to leverage your existing credit line up to 180 days to preserve your cash position and coordinate timing between receivables and payables. Now you can better manage your payment cycle by choosing your own payment terms to match the anticipated payment from your customer.

The Draft Purchase Program (DDP) is available to qualified Cisco partners with an existing open account and excellent payment history in China, Hong Kong, Indonesia, Malaysia, Philippines, Singapore, Taiwan, and Thailand.

Under the program, Cisco assigns the debt to The Trade Bank as an interest-bearing draft purchase upon completion of a deal. The Cisco partner repays the bank both principal and interest at the end of the term. The minimum order amount is US$100,000 pricing, and is tied to the London Inter-Bank Offered Rate, plus a spread based on cost of funds, country risk factors, and customer and transaction risk. Any tax withholding or penalty interest as a result of these transactions is the responsibility of program user.

Value Propositions
This financing program offers its valued Cisco customers the following:

• Extended payment terms—by extending your credit term up to 180 days versus a standard Cisco open account, you can better accommodate your customer's financial requirements
• Improved cash flow—by deferring payment on your Cisco purchase, you have a unique opportunity to bridge potential gaps and enhance business growth until you secure payment from your customers.
• Enhanced ability to compete—keeping competition based on the strength of Cisco solutions by eliminating possible contention over financing
• Increased access to working capital—gain optimal leverage to keep your company growing
• Aggressive market rates—particularly attractive in countries crippled by very high interest rates
• No setup fees, collateral, or bank hassles in most cases—and no early payment penalty

A highly respected Cisco partner in Singapore with an excellent credit history is bidding on a very competitive, strategic $500,000 deal. The customer requests a 180-day payment term. The partner can accommodate these terms and win the deal—without crippling their own cash position—by selecting the Draft Purchase program from Cisco Capital. Behind the scenes, Cisco Capital assigns the draft to The Trade Bank at a competitive rate and a 135-day term. Because the partner can accommodate the customer's request for extended terms, they can preserve their cash position and successfully win the contract.

For more information, contact Cisco Systems Capital Corporation at:
Jupe Tsui, Financial Services Manager, Asia
Phone: 65 833 5637		Email: jtsui@cisco.com