Cisco, the California-based global technology company, announced a new financing program that allows customers to defer 95 percent of the cost of new products until January, according to a press release.
"Cisco's customers and partners are under enormous pressure to keep their businesses connected while remaining productive and secure," said Chairman and CEO Chuck Robbins in a statement Tuesday (April 14). "Whether it's technology, financing or helping those most in need, Cisco is committed to working together to fight this pandemic on every front."
Cisco Capital, the company’s vendor financing division, will provide $2.5 billion in financing to provide companies with cash to help mitigate financial challenges, keep their businesses operating, and their employees and communities safe and amid the coronavirus crisis, the company said.
Dubbed the Business Resiliency Program, it offers an immediate 90-day payment holiday. Eligible products include hardware, software and services, such as installation.
Last week, competitor Hewlett Packard Enterprise (HPE) announced more than $2 billion in financing to help customers with their financial challenges stemming from the COVID-19 crisis, according to a press release.
HPE’s Payment Relief Program was designed to help customers buy new technology and lift some of the financial strain on firms, HPE said.
The initiative allows customers to buy what they need and pay 1 percent of the total contract value each month for the first eight months, deferring 90 percent of the cost until next year. Beginning in 2021, each monthly payment would equal 3.3 percent of total contract value.
“This is a challenging time to lead a business,” said Irv Rothman, president and CEO of HPE Financial Services, in a statement. “Today more than ever, IT leaders and CFOs play a central role in ensuring financial health while continuing operations. At HPE Financial Services, we are committed to helping businesses align their priorities from an IT economics perspective and provide them with concrete solutions so they can move forward.”