E-Rate Financing Program
An educational institution has awarded you a contract that has won E-Rate financing for qualified portions. It cannot pay you until it receives its E-Rate grant from the United States government, but you need to manage cash flow. The E-Rate financing program from Cisco Systems Capital can help.
The E-Rate financing program is available to Cisco partners and resellers who have won an E-Rate-financed contract with an educational institution. The E-Rate program is a special United States government subsidy created as part of the Telecommunications Act of 1996 that helps educational institutions finance technology investments. Educational institutions are awarded grants applicable toward certain technology purchases, including networking equipment.
How it Works
The E-Rate financing program is administrated for Cisco Systems Capital through a close affiliation with Deutsche Financial Services Corporation, a recognized financial leader. This extended-terms loan covers that portion of the purchase covered by the E-Rate grant, with 90-day interest-free terms for purchases direct from Cisco or through a Cisco authorized distributor such as Comstor Corporation, Ingram Micro, Inc., or Tech Data Corporation.
Value Propositions
This financing program offers Cisco customers the following value propositions:
- Increases payment terms—up to 90 days interest-free on Cisco products
- Increases sales opportunities—because you gain a financial edge to pursue deals associated with E-Rate grants
- Includes third-party equipment—lets you finance the complete E-rate portion, not just Cisco equipment (subsidized terms vary by vendor)
- Increases cash flow and working capital—because you donit have to wait for the federal government to reimburse your customer before getting paid
A Cisco authorized reseller has just won a $2 million deal at a public school district in a major metropolitan area. Of this, $1.5 million is secured by an E-Rate grant. The reseller arranges for interest-free E-Rate Financing from Cisco Systems Capital to cover the $1.5 million until it is paid by the United States government.
Americas
