NIMS IM&CS JANAK PANDYA

1. 1

6. Short Term Financing Advantages
Manage high growth - Increase your purchasing
power and ensure timely deliveries of the
equipment you purchase.
Flexibility - Expenditures can be matched to
budgetary levels. Your business conditions - cash
flow, equipment needs and company growth rates
can be managed more effectively.
Easy - Financing with Cisco Systems Capital
typically requires less documentation than bank
financing.
Improve your Cisco relationship - If you pay for
your purchases within the terms of your Cisco

7. Long Term Financing (Leasing)
Advantages
•Lower cost - Leasing conserves capital. Monthly
lease payments are less than monthly purchase
payments or monthly depreciation plus interest
expense.
•Flexibility - Payments can be matched to budgetary
levels. Your business conditions - cash flow,
equipment needs and tax situation - help define the
terms of your lease.
•Protection against obsolescence - The lease can
be structured to include upgrades and partial or
complete equipment swaps either at mid-term or at

8. •Eliminates risk - The equipment can be returned
at the end of the lease without regard for its book
value or the expense of proper disposal.
•Convenient - Leasing provides on-the-spot, one-
stop financing for a total solution. Hardware,
software, maintenance and asset management can
be included in the lease.
•Easy - Leasing typically requires less
documentation than bank financing and fewer
internal approvals than a capital purchase.
•Protects against inflation - Aggressive fixed-rate
pricing allows for protection against inflation
whereas variable-rate leases let you take
advantage of falling interest rates.

9. •Nowadays, loans have been packaged for resale.
This means that the debt has been bought by an
investor from the bank. These bonds are sold to
investors by financial corporations who have
exceeded beyond their expenditures.
•The investor can now collect all the interests and
be sold again through a secondary market.
•Banks serve as facilitators to companies in the
provision of credit and mutual funds.