Cisco launches its 0% financing program to support SMEs on all its products including software, hardware and services valued up to USD 300,000 throughout SE Asia.
Cisco says its launched a new financing program to help SMEs purchase its products at 0% interest and with no upfront costs, at a fixed 3-year monthly payment term. SMEs will be able to purchase hardware, software solutions as well as services under the scheme.
The launch of the offering comes as the COVID-19 pandemic and ensuing lockdowns across the region to control its spread, have disrupted supply chains and decreased business activities. Ciscos says the nature of SMEs means that they likely have a smaller pool of capital reserves. This coupled declining revenues has put a strain on cash flows of many SMEs, especially in sectors such as retail, construction, hospitality, and food and beverage – most of which have relatively high supply costs.
SMEs are critical to Singapore’s trade and commercial landscape. They employ 65% of Singapore’s workforce and contribute nearly 50% of Singapore’s economic output. The Singapore government has responded with assisted loan schemes offering SGD 4.5 billion to businesses, a large chunk of which has gone to SMEs.
As the government starts to ease restrictions and reopen the economy, SMEs are looking to adopt technology and digitize their business to resume operations safely, open new growth opportunities and contribute to the overall economic recovery post COVID-19.
According to Cisco Singapore Managing Director Andy Lee, the new program is aimed at providing financial support to SMEs that seek to equip themselves with the necessary tools and solutions to accelerate their business in the new digital era.
“The outbreak of COVID-19 has had a huge impact on SMEs across the country. However, the situation has also brought about a rapid shift in mindset of SMEs as they are now more receptive to the idea of integrating technology in various aspects of their business and accelerate their digital transformation journey not just as a means of survival in the current environment but also for driving future growth. The financing programme will make it easier for local SMEs to start and continue their digital journeys. The world is going through an uncertain economic period and at Cisco, we are committed to doing our part to help lighten the burden for Singapore’s SMEs,” says Lee.
Lee also says that ensuring SMEs are able to leverage technology to continue to sustain and grow their business is critical for the overall economy, not least because the sector accounts for more than two-thirds of all jobs in Singapore.
“If businesses in the sector grow, they will continue to protect and even create jobs and add to Singapore’s economic recovery post COVID-19,” says Lee.
According to Cisco Director Small Business ASEAN Raz Mohamed, the 0% financing program will provide SMEs access to necessary technological enablers from Cisco that include software, hardware and services without breaking their budget. Mohamed says SME’s will enjoy a 3-year, full payout lease plan where they pay equal 36-month payments on their Cisco purchases that costs between USD20,000 to USD300,000. and will fully own the equipment at the end of contract period.
“Cisco’s financing program offers built-in capabilities to ensure successful cash flow management for SMEs. Businesses can secure the technology they need to run their business with regular, predictable payments and 0% interest rate. They can also eliminate upfront costs, preserving their financial resources for other business priorities. SMEs are the backbone of ASEAN economies, accounting for over 85% of total business establishments and making up the main contributions to private sector employment in the region. However, they are currently facing the biggest challenges to their operations. Technology can help solve some of their key challenges and revitalize their operations. It is more important than ever for partners like Cisco to provide the much-needed assistance, not just through our solutions and expertise but also through programs that can help alleviate financial concerns,” says Mohamed.
(Ed. Cisco claims the new financing option is now available for any SME’s through Cisco Capital, the vendor financing business within Cisco. For more information on click here. Featured image by Photographer Tim Mossholder.)