Welcome to Zest4 LeasingIn association with November 2014

IntroductionHHF’s Offering to Zest4 and their partners

• To provide a lease facility for mobile hardware, fixed hardware and hosted solutions

• Access to the Zest4 Leasing Portal – each individual has their own login details to formally propose deals for finance-approval

• Lease Calculator – clearly breaks down the rentals depending on the invoice amount input, as well as the which finance option is selected

• Dedicated HHF Account Manager & Sales Support team; with a personal approach

• Proposal to Pay-out “in-house” service; taking the onus off you

• Universal lease-documents (softcopy / e-document also available)

• Payment of invoices within 48 hours

• Aftercare service

The Portal - breakdownQuick Decision

• Simple and straightforward - input customer name, equipment cost and term

• Once submitted, the deal automatically comes through to HHF for credit-approval

• We will acknowledge and action your proposal within 30 minutes, and a credit decision will be made within circa 4 hours

My proposals

• Your workbench - where your previous and current proposals will be logged

• This is where you will see the “stage” of the deal (i.e. quote / accepted / docs sent etc.)

• This will also breakdown the details of each deal (i.e. rental amount, term and total invoice value)

• You can also “edit” the quote on this page

Resources

• Download any PDF documents that we have attached to the deal by simply clicking on the relevant customer (i.e. formal credit acceptance or completed lease-documents ready for signing)

Messages / Training

• Both currently inactive, we are looking to develop this over time

The Sales Process

Login with your individual details via 54.77.110.2/HHF/Index.php

Start a quick decision by inputting the customer details, equipment cost and term of the deal

Click submit to formally propose the deal through to HHF for credit-

approval. Once selected you will automatically be taken to the my

proposals tab

Once credit-cleared HHF will update the status of the deal to

“accepted” on the my proposals page

If you wish to make any amendments to the proposal simply click on the customer name and it will take you to edit proposal.

Once you have made the relevant changes click update and you will see the changes have now been saved to the deal on the

workbench.Although HHF will be notified of any changes, the status of the deal

will remain as “accepted” regardless, and so please wait to hear back from us to confirm the changes have been taken into account

Once all approved and figures have been confirmed, upon request HHF

will upload the completed paperwork against the relevant deal. These can

be downloaded by clicking on the relevant customer within the

resources tab

Lease documents are signed by the customer and returned to HHF

Partner to dispatch equipment to end customer

Purchase Order released to relevant partner

Partner raises invoice to HHF, and customer signs Certificate of

Acceptance to confirm kit is installedHHF pay partner on customer’s

receipt of goods

HHF’s criteriaUnderwriting

• For non-regulated businesses (Limited Companies) we simply require business name / Co. Reg. Number

• No upper limited providing financials support the application

• For regulated businesses (sole-traders / partnerships) we will require full names, D.O.B’s and 3 year address history for each individual

• Can consider up to £10K per individual without requiring accounts (up to £20K for a partnership)

• Partner must have FCA Authorisation to offer finance to this type of customer (see “FCA Authorisation” page for more details)

Documentation

• These are valid for a 90 day period

• Authorised Signatories: Sole-trader – proprietor

Partnership – listed partner

Limited Companies – listed Director (this is dependant on the size of the end-user)

Additional charges

• Documentation Fee of £100 + VAT

• Title of goods will revert back to the relevant Channel Partner for £125 + VAT or 1% of the invoice value (whichever greater), once a formal Trading Agreement has been signed

Lease Rental Offering

• MAX term of 24 months for mobiles, 36 months for tablets

• Deals from £2,000+ (unless an add-on to an existing agreement)

• Applicable to a variety of makes / models of mobile devices

• To be written on HHF fixed term document

• As detailed within the Trading Agreement signed between HHF and the relevant partner, title of goods will revert back to the partner at the end of the agreement for £125 + VAT or 1% of the invoice value (whichever greater)

Rates

1 year (1+11m) 2 years (1+23m) 3 years (1+35m)

< £1999 94.84 51.65 37.40

£2000 - £9999 94.84 47.24 33.07

£10,000 < 94.84 46.70 32.35

RV OfferingRV offering for Commercial Entities

• MAX term of 24 months

• Applicable to iPhone 6 (16GB), iPhone 6+ (16GB), iPad Air wi-fi (16GB) only

• To be written on HHF minimum term document

• Customer must give 90 days written notice to terminate

• Title of goods will be retained by the finance house

RV offering for Schools and Academies

• MAX term of 24 months for iPhone 6 (16GB) and iPhone 6+ (16GB)

• MAX term of 36 months for iPad Air wi-fi (16GB) and iPad 4 wi-fi (16GB)

• Applicable for the above models only

• Quarterly profiles only

• To be written on Operating Lease document

• Customer must give 90 days written notice to terminate

• Title of goods will be retained by the finance house

*The pricing is valid to the end of December 2014 at which time, we will need to amend the pricing based on the product lifecycles*

Rates

iPhone 6 iPhone 6+ iPad Air

< £1999 N/A N/A N/A

£2000 - £9999 44.00 44.75 44.75

£10,000 < 43.00 43.76 43.76

Rates

1 year (1+3q) 2 years (1+7q) 3 years (1+11q)

< £1999 N/A 123.13 86.11

£2000 - £9999 N/A 123.13 86.11

£10,000 < N/A 123.13 86.11

“Add-ons” to existing agreements

HHF can consider deals from £400+, providing they are “additional handsets” to an agreement that has already been activated through them

Points worth noting:

• Minimum deal size: £400 + VAT (up to £1,999 + VAT; otherwise treated as a new deal)

• Term: MAX of 24 months

• Rate: 51.65 (as per rate chart)

• Documentation Fee: Nil

• Finance Offering: Lease Rental (full payout; no RV)

FCA Authorisation

This is only applicable when offering consumer credit to regulated businesses (i.e. sole-traders / partnerships)

Companies require a license to offer consumer credit, this was previously called a “Consumer Credit License” (CCL) and was governed by the Office of Fair Trading. However, in April 2014 it was passed across to the Financial Conduct Authority (FCA) who will govern it for the foreseeable future.

To apply for authorisation, or find out more information about the Financial Conduct Authority please follow this link:

http://www.fca.org.uk/firms/firm-types/consumer-credit/authorisation

Benefits of leasing

Security – lease agreements are not secured against anything but the asset itself. Our finance facility is agreed without the need for a charge / debenture against any freehold property

Fixed rate borrowing – the repayment are fixed regardless of whether interest rates rise, making cash flow management more predictable. We see this as the safest way to borrow money

No deposit – your customer will not make a payment until the equipment is fully installed and in working order

Tax advantages - leasing allows you to deduct the monthly payments from your taxable income because finance leases are viewed as operating expenses. Lease payments appear on the profit & loss sheet as a cost to the business in the same way as wages/ rates & are 100% deductible against tax. This means that subject to the customer paying 21% tax on their gross profit they will save 21% on every rental that they make

Preserves credit lines – there is no capital outlay required with a lease, the cost is spread across the duration of the agreement. In addition to this, our finance agreements preserve your other credit lines, (bank loans / credit cards etc.)

Upgrade Opportunities - leasing allows businesses to keep up to date with developments in technology. By the time the customer’s agreement is coming to an end more often than not there will be updated equipment available in the marketplace, not only that but the company may also have expanded and so their requirements could have changed. Being an existing customer of yours makes the upgrade an easier sell.

Example Leasing Deal – 20 Handsets – Business Share 2500 (All converged)

Zest4 SIM Only Tariff with a Zest4 Lease

Zest4 Standard Tariff – Revenue Share Model

TARIFF DETAILS: Parent = £51500 min bolt on = £14.50Sharers @ £5.50 X 19 = £104.50750MB data @ £3 X 20 = £60Total Rental = £230.00

KIT REQUIREMENTS: 5 X I-Phone 5S & 15 Nokia 625 = £4290 Total Cost Over 24 months the lease cost per month = £202.66         Total Customer Monthly Payment = £432.66 (£21.63 per handset)

PARTNER COMMISSION:Partner Commission = £2400 (£120 per handset) + 40% rev share overspend 

TARIFF DETAILS:  

Parent = £84.79

500 min bolt on = £24.00

Sharers @ £11.89 X 19 = £225.91

750MB data @ £5 X 20 = £100

Total Rental = £434.70

KIT REQUIREMENTS:

5 X I-Phone 5S & 15 Nokia 625 = £4290 Total Cost 

PARTNER COMMISSION:

40% Revenue Share on Tariff = £3990.72

Connection Bonus = £2400

Total Commission = £6390.72

Net commission after cost of kit = £2100.72 (£105.03 per handset) + 40% rev share overspend

Hints and Tips

When building a lease deal, ensure you list all of the equipment provided so that you can cover the soft costs (installations, site surveys, training) etc within the provision of the equipment.

e.g. A 10 seat Horizon Deal with £1000 installation costs should be positioned as 10x Cisco 504 handsets, Cisco Router and Installation at £1100.

Actual cost of handsets to partner = Zero

Actual cost of installation = £1000

Partner Profit = £100

Customer pays one lease price for the supply of all equipment and installation = £37.80 per month

Points to remember

Payout – HHF will only payout of the lease once the customer is in possession of all of the listed equipment and has confirmed it is in full working order

Trading Agreements - each partner must enter into a Trading Agreement with HHF to formalise our business relationship

Staged Payments– In a scenario where you have a bundled deal of hosted and mobile you may need to request a staged payment. In a case where the mobiles need to be provided and connected quickly but the hosted telephony has a time delay on install due to connectivity provisioning, it is possible to receive an interim payment from HHF against the equipment that has been provided to the customer. Speak to HHF in these scenarios

Soft Costs – HHF will allow a maximum of 10% of the overall kit cost to be built into the lease to cover site surveys / installations, the remainder must be for the provision of hardware. You therefore need to list all equipment provided to the customer including hosted telephones and routers and the associated charged

Companies trading under 3 years – Will only be accepted with a directors guarantee and that director must be a homeowner. HHF will need the full name and DOB of the director, three years residential address history and will only consider a three year lease term as a maximum

Insurance – All goods on a lease should be fully insured. You may be asked to give evidence of contents insurance

Acceptances – All lease acceptances are valid for 90 days. Should your deal exceed this period you will need to raise a new application

Account Management & Support

Henry Howard Finance offer Zest4 Channel Partners full account management and support services on all leasing deals.

Contact the team:

Gyles Thompson – Account Manager

gthompson@hhf.uk.com

01633 415211 / 07795 448558

Lucy Jones – Sales Coordinator

ljones@hhf.uk.com

01633 415238

Michael Jones – Sales Coordinator

mjones@hhf.uk.com

01633 415232

want to know more?

Contact Zest4 Channel Sales Team

0161 956 3355

www.Zest4.com