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What are IT Leases and Loans?

 

Technology financing such as leases, operating leases, loans and sale & leaseback allow you to spread payments over time, access and stay updated with the latest Cisco technology, and free up capital so you can invest in your other business goals.

Why finance your IT solutions?

  • IT financing is designed to provide you the freedom to acquire the technology you need to grow your business. It also gives you the flexibility to react to changing market needs by freeing up capital for day-to-day business.
  • Spread cost over time to make budgeting easier. Because your payments are more manageable, you'll know exactly how much you'll be spending and when.
  • Address your business-critical issues, making it possible for you to focus on your key business objectives, like driving productivity, maintaining profitability and improving competitiveness through innovation.

What are the differences between leases and loans?

A lease is a contract where the lessor (financial institution) allows the lessee (customer) to use an asset for a specified period of time in return for a recurring payment. At the end of the term, the lessor retains ownership of the asset in use.

A loan is borrowing funds from a financial institution by an individual or enterprise to purchase an asset. At the end of the term, the individual or enterprise will own the asset.

What are finance leases?

Finance leases allow customers to treat their IT solutions as a capital expenditure and spread the payments over several years. A finance lease provides the ability to deploy equipment when required while structuring payments.

What are operating leases?

Operating leases are designed for businesses that need constant access to the latest technology without the burden and risks of ownership. Equipment financed under an operating lease will not normally appear on the customer's balance sheet, therefore, payments are generally treated as operating expenses. At the end of the initial term, customers have the option to return the equipment, or upgrade in whole, or in part, to newer technology.

What are loans?

Loans allow customers to retain ownership upon purchase and free up capital for day-to-day business. Payments can be structured to match deployment and economic benefit.

What is sale and leaseback?

Sale and leaseback help businesses migrate to Cisco solutions and overcome the obstacle of legacy equipment and outstanding leases; thereby avoiding asset write-offs during technology migration. These transactions are designed for businesses which need to purchase assets first, for tax or other reasons, before leasing them.

Traditional IT financing benefits:

Alternative source of funds

Available and affordable funding for your IT solutions.


Cash preservation

Spread your costs over time and avoid a large upfront cash investment.


One solution, predictable payments

Combine hardware, software, services, and complementary third-party equipment with predictable payments.


Lower costs

Benefit from competitive rates and residual values to reduce total cost of ownership and accelerate return on investment.


Equipment lifecycle management

Help manage costs, meet business demands, and stay updated with flexible migration options and simplified equipment return/disposal.


Maximum flexibility

Further investment protection with the preferred payment schedules, term durations, and end-of-lease options.


Enhance credit capacity

Free up your lines of credit, leaving more capital available for when it is needed.