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January 2012

VAR BID:Cisco Capital VAR BID Program

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VAR BID—What Are the Benefits?

• Allows VAR to use CSC’s net-30 line with Cisco Inc.—does not impact Credit Line

• No cash outlay, improves Cash Flow

• CSC pays VAR their margin

• Partner credit lines are expanded

• Faster funding common

• Enterprise and Commercial Select Deals (being conducted out of San Jose)

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VAR BID—Qualification

To qualify for a VAR BID, a VAR must:• Have a pre-existing, active, Net 30 account with Cisco Inc. (they must be clean

and current on their A/R)

• Be a Gold or Silver partner, certified with Cisco Inc.

• Be validatedValidation means that Cisco qualifies the Partner, then sets them up in Market Place

To begin validation, send the full VAR name and address to Leslie Filiault

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VAR BID—Set Up

• A VAR Bill-to ID is created by Cisco Capital and attached to an existing VAR customer ID

• The Cisco Commerce Online Ordering Tool (aka Market Place) is the application partners use to enter their Cisco orders online; Partner employees who are designated to place the orders in Market Place are given user IDs—any newly created VAR Bill-to ID is attached to a user ID

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VAR BID—Ordering

• When placing an order, the Partner-user enters the Partner “net-30” ID to pay Cisco in cash for their order

• The Cisco Capital PO number is placed in the PO field in Market Place

• Once placed, the order is put on Credit hold until released by Cisco Capital

• Shipment will take place as usual

• The VAR directs Cisco Capital to pay specific invoices by completing a Pay Proceeds letter

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VAR BID—FAQ

Q: May I use progress payments with VAR BID?

A: No; the Progress Payment Program may not be used with VAR Bid because VAR BID deals with entire invoices, not individual line items

Q: My partner purchases from a distributor; may I use VAR BID for their deals?

A: No; VAR BID is for VARs that buy direct from Cisco only—CSC has a separate process for these partners called Assignment of Proceeds

Thank you.