In the automotive sector, trading partners require additional liquidity to order the vehicle or to redeem it from an existing purchase or Retail Finance arrangement as soon as a positive credit decision has been made on a submitted Retail Finance application. In some cases, the retail partner would like to keep the vehicle on Wholesale finance but needs the registration certificate (vehicle registration document) to prepare the vehicle for sale.
For financial service providers, this form of pre-financing has the following advantages - in addition to the direct business-This form of advance financing also has a sales function for financial service providers, as those who provide additional liquidity are generally also the preferred business partners when arranging Retail Finance. The Prepayment solution provides submitters (trading partners) with tailor-made processes for applying for, approving and processing prepayments for a financing object as soon as a positive credit decision has been made for Retail Finance for this object.
The range of services extends from the complete data transfer from the approved sales financing application and flexible selection of individually coordinated repayment plans, the recording of the required data budget with corresponding plausibility checks, automated queries for information, generation of automatic or manual credit decisions with the help of workflow-supported credit processing and disbursement, through to contract management and accounting. When setting up a framework agreement for advance payments, all settings such as granted limits and their utilization, base interest rates or ratings can be made on the basis of quantitative and qualitative criteria, among others.
Automated check
Automatic check of the application within seconds, including determination of the free credit line and the advance payment amount, taking into account discount factors;
Manual check
Automatic and, if necessary, manual decision taking into account customer-specific stop and knock-out criteria with exact logging of the decision history;
Workflow-based credit decision
Workflow-based credit processing with defined check steps up to the activation of the contract, including identification and transfer of information to the underlying sales financing transaction;
Disbursement
Disbursement of the amount to the account of the submitter or borrower and processing of repayments according to the repayment schedule with monthly interest calculation;
Settlement/offsetting
Settlement of the advance payment when activating Retail Finance, taking into account excess or shortfall amounts;
Maintenance of individual conditions and freely configurable repayment plans
Recording of the partner, allocation of the credit line and the individual conditions depending on the rating, maintenance of payment transaction accounts and payment method; freely configurable repayment plans with specifications on the rhythm or time of repayments, amount of repayments as a percentage or as an amount, type and amount of the interest surcharge as well as the person liable for interest, discount factors, e.g. for property type, property age.
The entire life cycle of advance payments - from application creation to contract termination - is mapped in a web-based, end-to-end system.
Financial service providers are present in all B2B sales channels on all end devices.
In conjunction with Wholesale Finance, the automatic netting of payment transactions between Retail Finance and Wholesale Finance is possible.
The solution is designed for high volumes, standardized processes, quick decisions and automated contract management.
Submitters (trading partners) can be offered flexible financial products.
Financing transactions can be offered for all common property groups (e.g. vehicles, equipment).
Credit decisions are made exclusively in accordance with the criteria and rules defined by the financial services provider. This ensures compliance with standardized and centralized lending guidelines and regulatory requirements.
As part of the activation process and during the term of the contract, a check is carried out to ensure that all collateral required in accordance with the established rules and regulations, such as vehicle registration documents, has been created and linked to the framework and property contracts.
