Cisco standard payment terms for non-manufacturing suppliers are Net 60.

US and Canadian Suppliers – Expedited, Discounted Payment Terms Option

Cisco offers expedited, discounted Payment Terms of 1/20 Net 60 to US and Canadian suppliers submitting invoices to either Cisco's US or Cisco's Canadian Accounts Payable addresses (see Section 9), as directed by a Cisco PO. For all invoices submitted to a Cisco Accounts Payable location outside of the US and Canada, the Net 60 payment terms will apply.

Geographic dictated payment terms requirement

The terms for the following countries, at this point in time, are Net 30.

NOTE: For all countries NOT listed above, Cisco's standard payment terms of Net 60 will apply.

FAQ's

• What does net 60 mean?

  This means that Cisco will pay the full invoice amount within 60 days of the invoice date

• How was the payment term net 60 selected?

  Cisco conducted extensive research, including benchmarking against our technology peers, and has selected the new payment terms to be net 60.

• Why is Cisco modifying its standard payment terms now?

  Cisco's supplier payment terms are significantly below what is considered standard when compared to our industry peers.

• If I opt for the 1%/20, net 60 option, how will I know if Cisco will pay within 20 days of invoice receipt and deduct 1% or if Cisco will pay in 60 days of invoice receipt and not take a discount?

  Cisco will make every effort to pay an invoice within 20 days of invoice receipt and deduct 1% from the total invoice amount in exchange for paying the invoice in such a short time period. In the event that Cisco is unable to pay an invoice within 20 days of invoice receipt, then Cisco will choose to pay the invoice within 60 days of invoice receipt and Cisco will not deduct the 1% discount.

• May I request that the change in payment terms take place at a later date?

  Suppliers will be notified by Cisco when the new terms will take effect. Please contact a representative from our Project Management Office to discuss changes to your payment terms

• How does this impact open purchase orders, new purchase orders issued, and invoices received on or before the Effective Date?

  nvoices against all new purchase orders raised after the Effective Date will be paid as per the new payment terms. For any approved products already delivered or services already performed without a purchase order, please contact the Project Management Office.

• What actions do I need to take?

  Please ensure that your Accounts Receivable Department is aware of the new Cisco payment terms. Suppliers wishing to participate in the Accelerated Payment Program (1%/20 net 60) should contact the Project Management Office.

• I have questions about the impact of the new standard payment terms on my business. Who may I talk to?

  For questions regarding the new payment terms, please contact the Project Management Office.