National City Managed Service Solutions

National City Managed Service Solutions (MSS), a division of National City Commercial Capital Company, LLC, offers a financial solution designed specifically for the needs of the Managed/Outsourced Service Provider market. Our program gives the provider the flexibility to market a fixed term, bundled services contract (including the equipment) with a single monthly fee. This innovative financial solution offers a process for the provider to finance the equipment component of the solution by leveraging the credit strength of their customer. The benefits are to procure debt on a non-recourse basis and in many cases, to receive up-front revenue recognition on the equipment component of the solution.

In order to sell products and services through a managed service contract, many companies directly obligate themselves to the equipment debt, which has several financial effects.

The effects of the debt obligation include:

• Slowing revenue recognition
• Constraining financial ratios and covenants
• Increasing operational risk by assuming direct debt obligation
• Assuming the long-term credit risk of the customer