Structured Financing
As a new competitive local exchange carrier (CLEC) or new service provider, your revenue source will be your network. Yet you face a long deployment phase before you can offer services to your subscribers, so you need the ability to defer payments on financing until you start to generate revenues. The Structured Financing program from Cisco Systems Capital lets you finance the entire cost-including equipment and ancillary costs-of high-dollar-volume projects, while deferring payment until your network is installed and you have paying subscribers.

How it Works
With medium-term (three to six years) or long-term (six to 10 years) financing options, the Project Financing program reflects the reality of how new service providers do business. Now you can finance your entire Cisco network project including equipment, cabling, and labor. You can even borrow unrestricted working capital to get your new network ready for business. It's a great way to obtain interim financing until your company is ready for its IPO. You can even use up to 25 percent of the amount borrowed to finance non-Cisco equipment (such as cabling and servers), and also use up to 25 percent of the amount borrowed as unrestricted working capital (including warrants).

Value Proposition
This financing program offers Cisco customers the following value propositions:

• Deferred payments-let you borrow aggressively while matching costs to revenues
• Aligned with the manufacturer-finance your network with the company who best understands your business-Cisco Systems-and tailors its financing products to conform to the unique service provider business model
• Full financial product suite-Cisco is investing in your success as a business, and forging a long term relationship with you as both a technology and financial partner, with other financing programs you can use later as your business grows
• One-stop shopping-with one place to go for best-of-class technology solutions and financing, it's easier and faster to get your network built and business started

A startup CLEC in Europe wants to build its own MPLS-enabled network so it can be the first to offer next-generation VPN services to businesses nationwide. It needs $15 million to build a Cisco network. By choosing to work with Cisco Capital under its Structured Financing program, the CLEC obtains a seven-year term on a loan to rapidly deploy its network, with repayment beginning in two years, after it builds a strong subscriber base.

For more information, contact Cisco Systems Capital Corporation at:
Brian P. Fukuhara, Manager, Worldwide Financial Services
Email: bfukuhar@cisco.com	Telephone: (408) 527-1611	Fax: (408) 527-3993