You Can Bank on Cisco -- Literally

SAN FRANCISCO -- First National Bank of Cisco?

With some customers having a tougher time raising money in the public markets, Cisco (CSCO Quote) is increasing its efforts to help them out by financing their purchases. The move is part of a bid by the networking giant to keep its revenue growth rising at a rapid pace. But the risk, as with any lender, is that Cisco might find itself with a bunch of bad loans, which it would have to charge against its earnings.

Financing purchases has been a particularly sensitive issue in recent weeks. Shares of phone and Internet service companies, some of which are Cisco customers, have fallen to new lows, and some have seen their access to cash diminish. This environment is making it tougher for the privately held start-ups that buy from Cisco to get cash as well. (TSC has explored this emerging cash crunch for service providers and its impact on shares of the equipment makers in previous stories.) ...