Open - Cisco...7914 IP Phone Expansion Module D scrip tion Thank y ou f r yo ur b sine s! n t £1,329.60 £1,354.60 Partner legal name and address. Full company name of Supplier

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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http://www.cisco.com/go/growit_europe

Goals and Objectives Section 1 Section 2 Section 3

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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

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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

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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

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Invoice Information

Invoice Requirements

Invoice Suggestions

Sample Invoice

Invoice Information Requirements

Trading Names & VAT Registration Numbers

Invoice Submittal


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

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Sample Invoice

For additional information:


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

[email protected] Ph: +49 (0) 160 9896 2830

Theresa Schweisser

[email protected] Ph : +49 (0) 811 554 3032 Fx : +49 (0) 811 996 6513 Am Söldnermoos 17 85399 Hallbergmoos

Belgium Brigitte Verbeken


Alice Moritz

[email protected] Ph: +31 (0) 20 357 3532 Fx: +31 (0) 20 890 7593 Haarlerbergpark Haarlerbergweg 13-139 1101 CH Amsterdam

Denmark Kasper Skriver


Alice Moritz


Finland Johan Ahlm


Alice Moritz


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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

[email protected]

Ph: +44(0) 20 8824 3054

Operations Lead:

Kieran O’Brien

[email protected]

Ph: +353(0) 1 819 2824

Directory of Contacts Cisco Capital Key Country Contacts



9



France Hamid Lateb


Antoine Guillaume

[email protected] Ph: +33 (0) 15 804 6180 Fx: +33 (0) 11 Rue Camille Desmoulins 92782 Issy Les Moulineux Cedex 09

Germany Hans-Joachim Woern


Theresa Schweisser

[email protected] Ph: +49 (0) 811 554 3032 Fx: +49 (0) 811 996 6513 Am Söldnermoos 17 85399 Hallbergmoos

Greece Rafael Chacon


Ramon Gil Martinez

[email protected] Ph: +34 (0) 91 201 2721 Fx: +34 (0) 91 291 9609 Avda. de la Vega, 15 28100 Alcobendas Madrid

Iceland Kasper Skriver


Alice Moritz


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Ireland David Curtis


Jackie Lindsay

[email protected] Ph: +44 (0) 20 8824 5481 Fx: +44 (0) 20 7657 3349 10 New Square, Bedfont Lakes Feltham, Middlesex TW14 8HA

Israel Rafael Chacon


Ramon Gil Martinez


Italy Roberto Brugora


Federica Mariani


Ilva Tramet

[email protected] Ph: +39 (0) 039 629 5369 Fx: +39 (0) 039 629 5299 Via Torri Bianche 8, Palazzo Acero 20059, Vimercate (MI)

Luxembourg Brigitte Verbeken


Alice Moritz



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Sweden Johan Ahlm


Alice Moritz


Switzerland Hans-Joachim Woern

[email protected]

Ph: +49 (0) 160 9896 2830

Theresa Schweisser

[email protected] Ph: +49 (0) 811 554 3032 Fx: +49 (0) 811 996 6513 Am Söldnermoos 17 85399 Hallbergmoos

United Kingdom

Lee Ashwood

[email protected]: +44 (0) 20 7496 3757

Jackie Lindsay

[email protected] Ph: +44 (0) 20 8824 5481 Fx: +44 (0) 20 7657 3349 10 New Square, Bedfont Lakes Feltham, Middlesex TW14 8HA



Netherlands Annelies George


Alice Moritz


Norway Kasper Skriver


Alice Moritz


Portugal Filipa Melo


Filipa Vilar Gomes

[email protected] 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

[email protected] Ph: +34 (0) 91 2012700

Yara Arias Ortiz


Ramon Gil Martinez


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

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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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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.


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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.


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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.


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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

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Index

Acronyms and Abbreviations

Directory of Cisco Capital Country Contacts

Transaction Process


Grow i.t. Cisco Capital Partner Website


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 ([email protected]). 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 [email protected].

© 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

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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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