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Cisco Capital Partner Reference Guide Version 1.0 November 2008
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Goals and Objectives Section 1 Section 2 Section 3
Table of Contents
Goals and Objectives 1
Section 1: Transaction Process 2
Transaction Flow Chart 3
Section 2: Invoice Information 4
Invoice Requirements 4
Invoice Suggestions 5
Sample Invoice 6
Invoice Information Requirements 6
Trading Names & VAT Registration Numbers 7
Invoice Submittal 7
Section 3: Reference Information 8
Directory of Contacts 9 - 10
Glossary of Acronyms and Abbreviations 11
Glossary of Documents 12
Glossary of Financial Terms 13 - 16
Template Customer Information Sheet 17
Index 18
For more information and updates, please visit www.cisco.com/go/growit_europe
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Goals and Objectives Section 1 Section 2 Section 3
1
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Goals and Objectives
Cisco Capital provides leasing and financing programs to serve
the dynamic environment of today’s business. Our leasing and
financing programs provide financial decision makers with flexibility,
convenience and control. Our offices are located throughout Europe
with representation in 19 countries. We provide financing solutions for all
sizes of organisations ranging from small to large enterprises, the public
sector and service providers.
Cisco Capital is also very committed to working with our partners. In
partnership with you, our customers can obtain the right Cisco solution
using flexible financing terms. We are dedicated to creating an open and
collaborative environment for our partners.
Communicate
• This Partner Reference Guide is your resource to understand Cisco
Capital policies and procedures
Collaborate
• Help us understand your billing cycle so together we can improve our
processes and shorten our deal cycles
• Each transaction is handled by a Cisco Capital Operations Lease
Service Manager (LSM) assigned to support you and your customers
Close
• Our Operations Team is committed to funding your deal promptly
• With communication and collaboration we can reduce our joint deal
cycle time. You can decrease your days sale outstanding (DSO),
meaning Cisco Capital can begin collecting lease payments sooner
As a strategic partner, our goal is to provide you with the tools and
resources necessary to help you quickly close your deals. The Cisco
Capital Partner Reference Guide is the first of a number of initiatives
undertaken to ensure that we continually strive to improve the service
and value that we bring to your business.
We look forward to a long and mutually successful business relationship.
Stuart Hall
European Channel LeadCisco Capital
Kieran O’Brien
European Operations DirectorCisco Capital
Goals and Objectives Section 1 - Transaction Process Section 2 Section 3
2
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Transaction Process
Step 1
Partner provides quotation for solution to the Customer and requests
finance quotation from Cisco Capital.
Step 2
Using the Partner’s quotation, Cisco Capital generates a finance
proposal and sends it to the Customer via email.
Step 3
Customer accepts the finance proposal. Customer or Partner
contacts Cisco Capital to start the finance process.
Step 4
The Customer provides their details along with a Bill of Materials
for credit review by the Cisco Capital Credit Team. (A Customer
Information Template is on page 17. This template identifies all the
necessary information and can be completed by either the Partner
or Customer.)
Step 5
When the credit decision is reached, Cisco Capital advises the
Customer and Partner.
Step 6
If Customer credit is approved Cisco Capital generates the required
finance documentation and sends to the Customer or Partner.
Step 7
Customer signs and returns the documents to Cisco Capital.
Step 8
Cisco Capital reviews the documents and sends a purchase order (PO) to
the Partner for release of the order providing documentation is acceptable.
Step 9
Partner sets up the order, with Cisco Capital as the bill-to and the
customer as the ship-to. Partner starts the delivery process for the
Customer equipment.
Step 10
Partner invoices Cisco Capital who begin the reconciliation of the
invoices against the PO.
Step 11
Once Partner confirms the final shipment, reconciliation is completed
and a Certificate of Acceptance (COA) is sought from the customer by
Cisco Capital.
Step 12
Upon receipt of the signed COA from the customer, Cisco Capital
settles the Partner’s outstanding invoices.
Your customer has elected you as their Channel Partner to implement the technology solution their business needs. Your Customer has also decided to lease with Cisco Capital – what is next?
Quote / Sales Process
Operations / Documentation
Goals and Objectives Section 1 - Transaction Flow Chart Section 2 Section 3
3
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Partner generates solution quote for Customer
Cisco Capital generates finance quotation and sends direct to the Customer
Customer accepts finance quote
Credit decision communicated to Partner and Customer
If approved, lease documents are raised for Customer signature
Customer signs all required Cisco Capital documents and returns to Capital
Correct documents are received, Cisco Capital creates purchase order (PO) and sends
to Partner
Partner invoices Cisco Capital. Reconciliation of invoices against PO begins
Once Partner confirms shipment, reconciliation is completed and COA is sought from Customer
Transaction Flow Chart
1
2
3
4
5
67
8
9
10
11
12
The Customer provides their details along with a Bill of Materials for review by the Cisco Capital Credit Team
Partner sets up the order, with Cisco Capital as the bill-to and the Customer as the ship-to. Partner starts the delivery process for the Customer equipment
Upon receipt of the signed COA from the Customer, Cisco Capital settles the Partner’s outstanding invoices
Goals and Objectives Section 1 Section 2 - Invoice Requirements Section 3
4
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Invoice Information
Invoice Requirements
Invoice Suggestions
Sample Invoice
Invoice Information Requirements
Trading Names & VAT Registration Numbers
Invoice Submittal
Invoice Requirements
Cisco Capital accepts your invoices, credit memos and debit memos
via email, fax or regular mail. Please see your Cisco Capital PO or the
invoice submittal section of this document for the specific invoice
delivery instructions.
Invoices, Credit Memos and Debit Memos
These documents must include:
• Partner information: Partner full legal name, VAT Registration
Number/ Local Tax number and address, contact name and
numbers
• Ship-to: Invoice must reflect ship-to name of Lessee or End User
(specifically if this is an installation or staging location)
• Cisco part numbers and complete descriptions of the hardware,
software or services. If you use your own inventory part numbers,
then the full Cisco part numbers must be included within the part
descriptions or notations
• Product serial numbers, for all serialised products
• Product unit and extended prices
• Freight/ shipping cost
• Invoice date
• Partner bank details for payment
Bill-to: Invoice must include the address of your Cisco Capital Lease
Service Manager (refer to pages 8-10)
• Cisco Capital’s PO number
• All items shipped must be listed on the invoice, even items at
zero cost
Special Notes on Credit and Debit Memos
A credit or debit memo may be generated for a number of reasons
– product that is Dead on Arrival (DOA), changes in configuration,
pricing discrepancies, etc. Your Cisco Capital LSM needs to be made
aware of any circumstances requiring additional invoicing so they
can determine when the shipment(s) and any adjustments to the
transaction are final. Only at this point, can the closing documentation
be forwarded to the Customer for signature.
Special Notes on Cisco Serial and Part Numbers
Cisco Capital requires serial and part numbers in order to process
invoices. If you are unable to provide this information on your invoice,
please include a spreadsheet containing this information so that we
can easily and promptly reconcile your invoice(s).
Q: How will you benefit from having all the required/ accurate information on the Cisco Capital invoice?
A: You will avoid potential delays to payment through the rejection of submitted invoices.
Goals and Objectives Section 1 Section 2 - Invoice Suggestions Section 3
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Invoice Suggestions – How to Improve your DSO
The level of detail you provide can affect how quickly we are able to
process your invoices for payment. The following tips can help ensure
you receive prompt payment:
• Ensure your invoices match the issued PO for quantity, cost and
configuration.
- In order for us to know when a transaction is complete, we
reconcile your invoices against the PO issued at the beginning
of the leasing process. If your invoices differ in quantity, cost
or configuration from the original PO, then reconciliation will be
delayed which will slow down the transaction process.
- If you know there will be changes to the initial PO, please
immediately contact your LSM so that the lease documentation
can be updated.
• Notify us when shipments against a PO are complete or whenever
the transaction size or configuration changes:
- Keeping us up to date on any transaction changes ensures we
know when a transaction has shipped completely, and begin
processing the final customer transaction documentation. If
the configuration or pricing on a transaction has changed and
we are not aware of this change, the final Customer transaction
documentation will be delayed. This will result in your payment
being delayed.
• Provide full details of installation locations for all items on
your invoice(s):
- For tax purposes, Cisco Capital needs to sure that we have
properly recorded the installation locations for all equipment.
You can provide this information to us on a spreadsheet if you are
unable to provide the asset locations on the invoice. Refer to your
Cisco Capital PO for email instructions.
• If possible, group all invoices for a transaction and submit them to us
in one package once the shipment is complete:
- Sending Cisco Capital a complete package of invoices for a
transaction allows us to process all invoices together, reconciling
the transaction quickly and accelerating the final Customer
documentation. Once the Customer signs off on the COA, we will
process your payment.
Q: How are funds distributed?
A: Funds are distributed through a BACS transfer to the assigned location on file. Partner’s bank information must be accurate and up to date to ensure payment is made correctly.
Invoice Date: 8 November, 2008Ship Date: 7 November, 2008Invoice No.: 222Purchase Order No.: CSC-999Customer ID No.: 55_55Currency: GBP
Part Number
Unit sPr ic e
Ext . Pric e
CP-7960G-CH1
1350.00
£
350.00£
CP-7914=
4244.90
£
979.60£
FreightVAT Amount
Invoice Total
J ob
Cisco Networking Solution
£25.00£0.00
London SW2
5678 Fictional Address Way
Pay ment T ermsDue on receipt
Sample Invoice
Cisco Systems Finance InternetAccounts Payable, 10 New SquareBedfont LakesFeltham
Middlesex, TW14 8HA
Serial # INM09471732Z
Install Location :
Cisco IP Phone 7960G
7914 IP Phone Expansion Module
De s c r ipt ion
T hank y ou f or y our bus ines s !
Total Net Amount
£1,329.60
£1,354.60
Partner legal nameand address.
Sample Invoice
Partner Reference Guide
Networks ‘R’ Us1234 Fictional Address WayHemel HempsteadHertfordshire. HP2 5AA
Bill to:
Joe Smith LtdEagle WayWarleySussex, HP3 6ZXUK
Ship to:
Cisco CapitalPurchase Order Number
Cisco Systems Inc.serial numbers
Cisco Systems Inc.part numbers
Final Installationlocation
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Goals and Objectives Section 1 Section 2 - Invoice Information Requirements / Sample Section 3
6
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Sample Invoice
For additional information:
http://www.cisco.com/go/growit_europe
please click here to view a printable sample
Invoice Information Requirements
Invoice Check List
The following is a check list of information that MUST be contained
within a Partner’s invoice for payment by Cisco Capital. Failure to
provide complete information will cause delays to the processing and
payment of any invoice.
Supplier details
(Your Partner)
Full company name of Supplier / Partner
Full address of Supplier / Partner
VAT registration number of Supplier / Partner
Bank name
Bank account details
Bank sort code
IBAN number
SWIFT / BIC codes
Customer details
(Either: Cisco Capital or Local Financing Partner)
Full trading entity name of Cisco Capital
Bill-to full address of Cisco Capital Entity
Country VAT registration of Cisco Capital, use the Cisco Capital
country VAT number in which the transaction occurs
Transaction details
(End User, Lessee)
Ship-to address
Issue date of the invoice
A unique and sequential identifying invoice number
Date on which the supply of goods or services was made
or completed
Cisco part numbers
Description / nature of the goods or services
Quantity and nature of the goods supplied or the extent and nature
of the services rendered
Price per unit excluding VAT and any discounts or rebates if they
are not included in the unit price
Net amount per VAT rate or exemption, and VAT rate(s) applied
Where VAT is charged on the invoice, the VAT amount must be
identified in the local currency of the country where the sale has
taken place
Reference to National or Community legislation in case no VAT is
charged on the invoice
If payment is required in a foreign currency, the Partner’s internal
exchange rate used must be provided for VAT purposes
Goals and Objectives Section 1 Section 2 - Trading Names & VAT Registration Numbers Section 3
Cisco Capital Trading Names & VAT Registration Numbers
Country Country Trading Entity VAT Registration
Austria* Please contact your Lease Service Manager for details Finance Partner VAT Number
Belgium* Please contact your Lease Service Manager for details Finance Partner VAT Number
Denmark* Please contact your Lease Service Manager for details Finance Partner VAT Number
Finland* Please contact your Lease Service Manager for details Finance Partner VAT Number
France Cisco Systems Capital France SAS FR 40449162163
Germany CSC Germany GmbH DE 813645520
Greece* Please contact your Lease Service Manager for details Finance Partner VAT Number
Iceland* Please contact your Lease Service Manager for details 93638 (non EU)
Ireland Cisco Systems Finance International IE 6333769E
Israel* Please contact your Lease Service Manager for details Finance Partner VAT Number
Italy Cisco Systems Capital Italy Srl IT 02753180138
Luxembourg* Please contact your Lease Service Manager for details Finance Partner VAT Number
Netherlands Cisco Systems Capital Netherlands BV NL 812197483B01
Norway* Please contact your Lease Service Manager for details Finance Partner VAT Number
Portugal Cisco Systems Finance International - Secursal Em Portugal PT 980366453
Spain Cisco Systems Capital Spain SL ES B83448175
Sweden* Please contact your Lease Service Manager for details Finance Partner VAT Number
Switzerland* Please contact your Lease Service Manager for details 518162 (non EU)
UK Cisco Systems Finance International GB 678655277
Note: * In these countries, Cisco Capital is a non-captive leasing entity and operates through third-party financing partners. This means that in these countries the Bill-to address will be that of the Finance Partner, not Cisco Capital. Please contact your Lease Service Manager for details
7
Invoice Submittal
Our research has shown that sending an invoice through regular mail
can add as many as 12 days to the transaction cycle. Sending us your
invoices via email or fax will significantly reduce the deal cycle time,
helping us expedite the funding. Cisco Capital still requires the hard copy
original version although this will not delay funding.
As outlined on your PO, Cisco Capital can receive your invoices either by:
• Email address: See local contact information (refer pages 8-10)
• Post to your local country Cisco Capital address (refer pages 8-10)
If you have any questions, please do not hesitate to contact the Lease
Service Manager identified on your PO.
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Goals and Objectives Section 1 Section 2 Section 3 - Directory of Contacts
8
Country Cisco Capital Country Manager
Cisco Capital Lease Service Manager
Austria Hans-Joachim Woern
hwoern@cisco.com Ph: +49 (0) 160 9896 2830
Theresa Schweisser
tschweis@cisco.com Ph : +49 (0) 811 554 3032 Fx : +49 (0) 811 996 6513 Am Söldnermoos 17 85399 Hallbergmoos
Belgium Brigitte Verbeken
bverbeke@cisco.com Ph: +32 (0) 2 704 5046
Alice Moritz
amoritz@cisco.com Ph: +31 (0) 20 357 3532 Fx: +31 (0) 20 890 7593 Haarlerbergpark Haarlerbergweg 13-139 1101 CH Amsterdam
Denmark Kasper Skriver
kskriver@cisco.com Ph: +45 (0) 3 958 5177
Alice Moritz
amoritz@cisco.com Ph: +31 (0) 20 357 3532 Fx: +31 (0) 20 890 7593 Haarlerbergpark Haarlerbergweg 13-139 1101 CH Amsterdam
Finland Johan Ahlm
jpeterss@cisco.com Ph: +46 (0) 70 605 2945
Alice Moritz
amoritz@cisco.com Ph: +31 (0) 20 357 3532 Fx: +31 (0) 20 890 7593 Haarlerbergpark Haarlerbergweg 13-139 1101 CH Amsterdam
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Reference Information
Directory of Contacts
Glossary of Acronyms and Abbreviations
Glossary of Documents
Glossary of Financial Terms
Index
Additional Key Contacts
Cisco Capital Website:
www.cisco.com/go/growit_europe
Channel Lead:
Stuart Hall
stuhall@cisco.com
Ph: +44(0) 20 8824 3054
Operations Lead:
Kieran O’Brien
kobrien@cisco.com
Ph: +353(0) 1 819 2824
Directory of Contacts Cisco Capital Key Country Contacts
Goals and Objectives Section 1 Section 2 Section 3 - Directory of Contacts
9
Country Cisco Capital Country Manager
Cisco Capital Lease Service Manager
France Hamid Lateb
hlateb@cisco.com Ph: +33 (0) 15 804 5016
Antoine Guillaume
Anguilla@cisco.com Ph: +33 (0) 15 804 6180 Fx: +33 (0) 11 Rue Camille Desmoulins 92782 Issy Les Moulineux Cedex 09
Germany Hans-Joachim Woern
hwoern@cisco.com Ph: +49 (0) 160 9896 2830
Theresa Schweisser
tschweis@cisco.com Ph: +49 (0) 811 554 3032 Fx: +49 (0) 811 996 6513 Am Söldnermoos 17 85399 Hallbergmoos
Greece Rafael Chacon
rachacon@cisco.com Ph: +34 (0) 91 201 2700
Ramon Gil Martinez
rgil@cisco.com Ph: +34 (0) 91 201 2721 Fx: +34 (0) 91 291 9609 Avda. de la Vega, 15 28100 Alcobendas Madrid
Iceland Kasper Skriver
kskriver@cisco.com Ph: +45 (0) 3 958 5177
Alice Moritz
amoritz@cisco.com Ph: +31 (0) 20 357 3532 Fx: +31 (0) 20 890 7593 Haarlerbergpark Haarlerbergweg 13-139 1101 CH Amsterdam
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Country Cisco Capital Country Manager
Cisco Capital Lease Service Manager
Ireland David Curtis
davcurti@cisco.com Ph: +353 (0) 1 819 2773
Jackie Lindsay
jalindsa@cisco.com Ph: +44 (0) 20 8824 5481 Fx: +44 (0) 20 7657 3349 10 New Square, Bedfont Lakes Feltham, Middlesex TW14 8HA
Israel Rafael Chacon
rachacon@cisco.com Ph: +34 (0) 91 201 2700
Ramon Gil Martinez
rgil@cisco.com Ph: +34 (0) 91 201 2721 Fx: +34 (0) 91 291 9609 Avda. de la Vega, 15 28100 Alcobendas Madrid
Italy Roberto Brugora
rbrugora@cisco.com Ph: +39 (0) 345 295 6528
Federica Mariani
fmariani@cisco.com Ph: +39 (0) 039 629 5609
Ilva Tramet
itramet@cisco.com Ph: +39 (0) 039 629 5369 Fx: +39 (0) 039 629 5299 Via Torri Bianche 8, Palazzo Acero 20059, Vimercate (MI)
Luxembourg Brigitte Verbeken
bverbeke@cisco.com Ph: +32 (0) 2 704 5046
Alice Moritz
amoritz@cisco.com Ph: +31 (0) 20 357 3532 Fx: +31 (0) 20 890 7593 Haarlerbergpark Haarlerbergweg 13-139 1101 CH Amsterdam
Goals and Objectives Section 1 Section 2 Section 3 - Directory of Contacts
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Country Cisco Capital Country Manager
Cisco Capital Lease Service Manager
Sweden Johan Ahlm
jpeterss@cisco.com Ph: +46 (0) 70 605 2945
Alice Moritz
amoritz@cisco.com Ph: +31 (0) 20 357 3532 Fx: +31 (0) 20 890 7593 Haarlerbergpark Haarlerbergweg 13-139 1101 CH Amsterdam
Switzerland Hans-Joachim Woern
hwoern@cisco.com
Ph: +49 (0) 160 9896 2830
Theresa Schweisser
tschweis@cisco.com Ph: +49 (0) 811 554 3032 Fx: +49 (0) 811 996 6513 Am Söldnermoos 17 85399 Hallbergmoos
United Kingdom
Lee Ashwood
leashwoo@cisco.comPh: +44 (0) 20 7496 3757
Jackie Lindsay
jalindsa@cisco.com Ph: +44 (0) 20 8824 5481 Fx: +44 (0) 20 7657 3349 10 New Square, Bedfont Lakes Feltham, Middlesex TW14 8HA
Country Cisco Capital Country Manager
Cisco Capital Lease Service Manager
Netherlands Annelies George
anngeorg@cisco.com Ph: +31 (0) 20 357 3009
Alice Moritz
amoritz@cisco.com Ph: +31 (0) 20 357 3532 Fx: +31 (0) 20 890 7593 Haarlerbergpark Haarlerbergweg 13-139 1101 CH Amsterdam
Norway Kasper Skriver
kskriver@cisco.com Ph: +45 (0) 3 958 5177
Alice Moritz
amoritz@cisco.com Ph: +31 (0) 20 357 3532 Fx: +31 (0) 20 890 7593 Haarlerbergpark Haarlerbergweg 13-139 1101 CH Amsterdam
Portugal Filipa Melo
fimelo@cisco.com Ph: +351 (0) 21 440 2485
Filipa Vilar Gomes
fvilargo@cisco.com Ph: +351 (0) 21 454 1707 Fx: +351 (0) 21 454 1002 Mail Stop ORS03/2/ Lagoas Park, Edificio 12 Porto Salvo, Oeiras, Lisboa 2740-269
Spain Rafael Chacon
rachacon@cisco.com Ph: +34 (0) 91 2012700
Yara Arias Ortiz
yariasor@cisco.com Ph: +34 (0) 91 201 2159
Ramon Gil Martinez
rgil@cisco.com Ph: +34 (0) 91 201 2721 Fx: +34 (0) 91 291 9609 Avda. de la Vega, 15 28100 Alcobendas Madrid
Glossary of Acronyms and Abbreviations
ACTAdvance Corporation Tax.
AOPAssignment of Proceeds is a three party agreement specific to
a Cisco Capital PO signed by a Reseller (Partner), Distributor
and Cisco Capital.
C of A (COA)Certificate of Acceptance.
CMFSCisco Management Financial Services.
CTCorporation Tax.
DCFDiscounted Cash Flow. Where the ‘time value’ of cash flow is
taken into account, and today’s value of a series of payments or
receipts declines as they are moved further into the future.
DSODays Sale Outstanding.
DOADead on Arrival.
DOCsDocumentation.
EBITDAAcronym for earnings before interest, taxes, depreciation
and amortisation. The same calculation can be arrived at
from ‘operating income before depreciation and amortisation’
(OIBDA). It is one measure of ‘operating cash flow’.
EURIBOREuro Interbank Offered Rate is a daily reference rate based
on the averaged interest rate at which banks offer to lend
unsecured funds to other banks in the Euro wholesale money
market (or interbank market).
FASB ‘13’‘Financial Accounting Standards Board 13’ Accounting for Leases;
Sets out financial accounting standards for leases in the US.
FHBRFinance House Base Rate.
GAAPGenerally Accepted Accounting Principles – the standard
framework of guidelines for financial accounting. It includes
the standards, conventions, and rules accountants follow in
recording and summarising transactions, and in the preparation
of financial statements.
HPHire Purchase. A type of purchase requiring the buyer to pay
for the goods in instalments. Title does not pass to the hirer until
the purchase option is exercised after the last instalment.
IRRInternal Rate of Return (IRR) is a capital budgeting method
used by firms to decide whether they should make long-term
investments. The IRR is the annualised effective compounded
return rate which can be earned on the invested capital, ie the
yield on the investment.
LIBOR (IBOR)London Inter-Bank Offered Rate (Inter-Bank Offered Rate). The
interest rate charged by one bank to another. Covers periods
ranging from ‘overnight’ to one year.
LMLeasing Manager.
LSMLease Service Manager.
MLAMaster Lease Agreement.
POPurchase Order.
POAPurchase Order Assignment.
PPAProgress Payment Agreement.
SSAP21Statement of Standard Accounting Practice that defines a lease,
other than a finance lease, as an operating lease.
VARValue Added Reseller.
VAR BIDValue Added Reseller Bill-to ID.
Goals and Objectives Section 1 Section 2 Section 3 - Acronyms and Abbreviations
11
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Glossary of Documents
Agreement to Lease Equipment
A standalone lease where all terms of the Master Agreement to Lease
and Schedule are wrapped into one document.
Certificate of Acceptance (Delivery and Acceptance)
A document whereby the lessee acknowledges that the equipment to be
leased has been delivered, is acceptable, and has been manufactured
or constructed according to specifications.
Equipment Schedule
A document that describes in detail the equipment being leased. It may
also state the lease term, commencement date, repayment schedule,
purchase options, and locations of the equipment.
Loan Agreement
A standalone financial agreement used in lieu of a lease agreement
where all terms, conditions, and payments schedule are defined. This
document is used by Cisco Capital to finance software, maintenance
and professional services when no equipment is present in the
transaction. Cisco Capital loan agreements are available in Denmark,
Finland, Ireland, Italy, Netherlands, Norway, Sweden, Switzerland and the
United Kingdom.
Master Agreement to Lease
A contract in which the Lessee leases currently needed assets and is
able to acquire other assets under the same basic terms and conditions
without negotiating a new contract.
Progress Payment Agreement
An Agreement wherein the Lessee authorises the Lessor to forward
funds to the Partner before the acceptance documentation has been
executed.
Goals and Objectives Section 1 Section 2 Section 3 - Glossary of Documents
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Glossary of Financial Terms
Actuarial Methods of Accounting
Accounting methods where cash earned during a lease is
periodically removed from the lessor’s investment account
according to a fixed proportion of the balance outstanding.
Agent
An authorised party acting on behalf of another party.
Agency Agreement
An agreement detailing the terms under which an agent
shall act.
Amortise
Depreciate or reduce in value.
BACS
Bankers Automated Clearing System.
Bullet
A one off payment from a lessee which can be collected at
anytime during a lease.
Breach or Default of an Agreement
Failure to comply with a term of an agreement.
Captive
A subsidiary whose purpose is to provide financing to
customers buying the parent company’s product. The captive
finance company (Cisco Capital) is usually wholly owned by the
parent company (Cisco Systems).
Conditional Sale
A type of purchase where the buyer pays for the goods in
agreed instalments, after which title passes automatically.
Transfer of title is not dependent on exercising an option to buy,
as in Hire Purchase.
Contract
An Agreement between two or more parties where
consideration (benefit or value) has passed.
Credit Sale
A type of instalment sale, where possession and title pass
when a purchaser contracts to pay by a series of subsequent
payments.
Cross Border
Leases where the lessor and lessee are in different countries.
Encumbrance
A liability attached to property e.g. a lien, mortgage or charge.
Endorsement
A modification to an agreement accommodating individual
circumstances relating to the lease terms.
Equalised Repayment
A variable rate agreement whereby the rental remains fixed, the
term is adjusted to compensate for additions / reductions in the
interest rate percentage.
Execution
The enforcement of a court judgement.
Export Leasing
Cross border leasing where the leased equipment is
manufactured in the country of the lessor.
Extension, Renewal or secondary Period
The continuation part of a finance agreement if the lessee
retains equipment after the primary period has expired.
Finance Lease
A lease for a non-cancellable primary period, defined under
SSAP 21 as one that transfers substantially all the risks and
rewards of ownership of an asset to the lessee.
Goals and Objectives Section 1 Section 2 Section 3 - Glossary of Financial Terms
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Glossary of Financial Terms (continued)
Full Payout Lease
A finance lease.
Fully Amortising
Where the value of an asset is written off in full over the life of an
agreement.
Guarantee
A legally binding agreement with a party (guarantor) agreeing
to guarantee some or all of the responsibilities of the lessee
should the lessee fail to meet them There must be some benefit
to the guarantor in agreeing to guarantee the lessee.
Hardware
Physical product such as computer equipment, rather than
services or software.
Hiring or Renting
Financing, usually over a shorter period and with the equipment
typically selected from the hirer, not a manufacturer.
Holiday
Often used as meaning terminal pause, but can describe a
period where the lessee makes no payments during a primary
period.
Indemnity
Protection given to one party by another, where there is
agreement to make good any loss suffered.
Initial Pause
A deferred period of rentals where the lessee makes no
payments at the beginning of a finance agreement, there would
be no terminal pause (see explanation below) nominally.
Lease
A contract between a lessor and a lessee for the use of a
specific asset selected from a manufacturer or vendor. The
lessor retains ownership of the asset and the lessee has
possession and use of the asset upon payment of specified
rentals over a period of time.
Lease Profile
The number, timing and frequency of lease rentals or
instalments.
Lessee
The user of the equipment being leased.
Lessor
The party to a lease agreement who has legal or tax title to the
equipment, grants the lessee the right to use the equipment for
the lease term, and is entitled to the rentals.
Letter of Comfort
A letter by which one party indicates its intention given a
possible event. It is not legally binding like a guarantee, and
usually only has moral force.
Licence and Assignment
The transfer of a finance agreement to another party. The
authority to transfer is the Licence; the actual transfer is the
Assignment.
Lien
The right of one party to keep in its possession property
belonging to another until legal claims against the other are
satisfied.
Lease Purchase
HP or hire purchase.
Loan
Funding isn’t tied to a fixed asset. The borrower initially does
receive an amount of money from the lender, which they pay
back, usually but not always in regular instalments, to the lender.
This service is generally provided at a cost, referred to as
interest on the debt.
Mainstream Corporation Tax
Corporation Tax payable at the basic rate prevailing at the time.
Goals and Objectives Section 1 Section 2 Section 3 - Glossary of Financial Terms
14
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Glossary of Financial Terms (continued)
Manufacturers Support Scheme
An agreement between a manufacture of equipment and a
lessor to provide financing facilities to its customers.
Margin
A percentage above a lessor’s cost of funds. May involve
deducting overheads and corporation tax.
Master Lease Agreement
An agreement between a lessor and a lessee specifying the
terms and conditions of all future leases or schedules.
Non-Captive
Best described as an independent outsourced financing
partner, where the captive organisation (Cisco Capital) does
not have a legal presence to provide either in country structural
or, cross border financing solutions. The outsourced financing
partner offers financial products and services using the
financial resources at its disposal, on behalf of Cisco Capital.
Non-Tax Based Leasing
Leases in which the lessor does not take into account capital
allowances into the rental calculations.
Novation
Where the terms of an existing agreement are transferred to a
new party. Sometimes known as a Tripartite Agreement, since
there are three parties involved.
Off Balance Sheet
Usually means an asset or debt or financing activity not on the
company’s balance sheet.
Operating Lease
A lease where the cost of the asset is not wholly amortised
during the primary period of the lease, and which satisfies
certain provisions of SSAP21.
Peppercorn Rent
A very low or nominal rent, usually applies in the secondary
period of a finance lease.
Post-Inception Variable
A finance rate/rental which is variable AFTER the lease being
incepted.
Pre-Inception Variable
A finance rate/rental which is variable PRIOR to the lease being
incepted.
Pre-Lease
An agreement between a lessor and lessee prior to lease
execution, committing the lessee to lease goods at a future date.
Primary Period
The first period of a finance agreement.
Renting
Financing, usually over a shorter period and with the equipment
typically selected from the renter, not a manufacturer.
Re-Purchase Agreement
Agreement where the manufacturer agrees to re-purchase
equipment for an agreed percentage of the original cost at the
end of the lease. Sometimes referred to as ‘buyback’.
Residual Value Balloon
Where an asset is amortised to a particular predicted Residual
Value at the end of the primary period.
Return On Investment
The margin over cost of funds obtained from the investment in a
finance agreement.
Sale and Leaseback
A type of leasing, where title of an asset is transferred to a
lessor from a lessee and then leased back to the lessee.
Goals and Objectives Section 1 Section 2 Section 3 - Glossary of Financial Terms
15
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Glossary of Financial Terms (continued)
Sales-Aid Leasing
An agreement between a manufacture of equipment and a
lessor to provide finance facilities to its customers.
Scheduled Balance
A variable rate agreement whereby the rental is variable
according to percentage interest rate movements, the term is
fixed. Interest rate percentages can be attributed to opening
balances of capital, and collected at different or matching
period to the capital amount.
Seizure
Confiscation of property without the owner’s consent.
Sideletter
A letter or agreement which amends or varies another
agreement to accommodate individual circumstances.
Small Ticket
Low value finance agreement, typically less than £25,000
(e25,000).
Sub-Lease
Where a lessee re-leases to a third party and the lease
agreement between the original lessee and lessor remains in
effect.
Stub
A one off payment from a lessee which is collected at the
beginning of a lease, normally with the first rental/s.
Taxable Capacity
Those profits on which a company is liable to pay mainstream
corporation tax.
Tax Based Leasing
Leases in which the lessor takes into account capital
allowances in the calculation of lease rentals.
Tax Exhaustion
Having insufficient taxable profits to take advantage of capital
allowances due.
Tax Loss
The excess of allowances over and above taxable profits.
Terminal Pause
The period of time (at the end of primary rentals) in which no
rentals are due from the lessee because there were payment(s)
made in advance.
Tranche
A slice or piece of business.
Tripartite Agreement
Where the terms of an existing agreement are transferred to a
new party, alternatively an agreement between three parties.
Useful Life
Economic life of an asset. The period of time during which an
asset will have economic value and be useable.
Waiver
An agreement where a party agrees not to insist on a right
which it would otherwise have.
Writing Down Allowances
The percentage of an asset’s cost which can be offset yearly
against a company’s tax bill.
Year End
The end of a trading year. Many leasing companies have
subsidiary companies with more than one year end.
Goals and Objectives Section 1 Section 2 Section 3 - Glossary of Financial Terms
16
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Template of Customer Information DocumentCompletion is Required for Credit Submission
Customer Information
Full legal company name
Registered company address
Company registration number
VAT registration number
Contact name and role/ position
Contact telephone and email
Date company established
Equipment location address(s)
Please state if the equipment location address(s)
above are Freehold or Leasehold
Billing address (if different from above)
Parent company legal name (if applicable)
Name and address for lease documentation to be
sent (if different from above) Please send this form to the appropriate
Country Lease Service Manager
SEND
Reseller/ Partner Information
Full legal Reseller/ Partner company name
Reseller/ Partner company address
Contact name and role/ position
Contact telephone and email
Contact fax (must be completed as
PO will be faxed to this number)
When submitting invoices please ensure you include full bank details
Account name
Account number
Bank details/ sort code
Goals and Objectives Section 1 Section 2 Section 3 - Customer Information Sheet
17
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Index
Acronyms and Abbreviations
Directory of Cisco Capital Country Contacts
Transaction Process
Glossary of Financial Terms
Grow i.t. Cisco Capital Partner Website
Invoice Requirements
Invoice Submittal
Purchase Orders
Transaction Flow Chart
© 2008 Cisco Systems, Inc. All rights reserved. Cisco, the Cisco logo, and Cisco Systems are registered trademarks or trademarks of Cisco Systems, Inc. and/or its affiliates in the United States and certain other countries. All other trademarks mentioned in this document or Website are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company. (0805R)
This is “TM_Block_Abbrev.eps” (Product Collateral Address Block, abbreviated, as .eps format)Dated May 08 Questions about this trademark file can be directed to Content Strategy & Services (editorial@cisco.com). Notes: 1. This template is based on U.S. size 11"x8.5", specifically for landscape-format templates such as the At a Glance and Positioning and Selling Quick Reference. For use on international templates or a different page size, follow placement on international template and/or resize the trademark block as appropriate. 2. The trademark block should be edited to reflect specific trademarks that are referenced in the content of the piece. For assistance on how to edit the trademark block, contact editorial@cisco.com.
© 2008 Cisco Systems, Inc. All rights reserved. Cisco, the Cisco logo, and Cisco Systems are registered trademarks or trademarks of Cisco Systems, Inc. and/or its affiliates in the United States and certain other countries. All other trademarks mentioned in this document or Website are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company. (0805R)
Goals and Objectives Section 1 Section 2 Section 3 - Index
18
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Invoice Date: 8 November, 2008Ship Date: 7 November, 2008
Invoice No.: 222Purchase Order No.: CSC-999
Customer ID No.: 55_55Currency: GBP
Part Number Unit s Pr ic e Ext . Pric e
CP-7960G-CH1 1 350.00£ 350.00£
CP-7914= 4 244.90£ 979.60£
Freight
VAT Amount
Invoice Total
J o b
Cisco Networking Solution
£25.00
£0.00
London SW2
5678 Fictional Address Way
Pay ment T erms
Due on receipt
Sample Invoice
Cisco Systems Finance InternetAccounts Payable, 10 New SquareBedfont LakesFelthamMiddlesex, TW14 8HA
Serial # INM09471732Z
Install Location :
Cisco IP Phone 7960G
7914 IP Phone Expansion Module
De s c r ipt ion
T hank y ou f or y our bus ines s !
Total Net Amount £1,329.60
£1,354.60
Partner legal nameand address.
Sample Invoice
Partner Reference Guide
Networks ‘R’ Us1234 Fictional Address WayHemel HempsteadHertfordshire. HP2 5AA
Bill to: Joe Smith LtdEagle WayWarleySussex, HP3 6ZXUK
Ship to:
Cisco CapitalPurchase Order Number
Cisco Systems Inc.serial numbers
Cisco Systems Inc.part numbers
Final Installationlocation
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