“Now we can provide our
clients even more flexibility in the products we offer
them.”
In the competitive finance market being able to
offer products that are better suited to the individual demands of
clients is key to long-term success. The Revolving Credit Module
provides this advanced functionality that will enhance the scope of
operation of every finance company.
Revolving Credit facilities have a wide range of
uses that include:
Revolving
Credit is part of finPOWER, one of a new generation of products that
uses the most up to date development technologies available.
finPOWER reflects on the 20 years experience Intersoft Systems has
had developing software for the Finance industry and incorporates
new features requested by the many existing Users.
finPOWER is comprised of a set of core features that
offer the Finance Company the ability to record and track a wide
range of types of Loans. These are enhanced by a number of optional
Add-ons that need only be purchased if required. This allows
for changing requirements and system growth that can match that of
your company.
Client Details
The Client file includes information regarding
contact details, past addresses, notes with action dates, a photo of
the client and Loans and Deposits the client is associated with,
either as the main lendee / lender, a joint name, a grantor or as a
guarantor.
Full details are also held for any archived loans
the client has been associated with. Information is retained for
compliance to the PPSR including Date of Birth and Company
Incorporation Number.
Revolving Credit Loan Types
Revolving Credit Loan Types define essential default
information such as the Interest type and base rate, facility fees,
establishment fees and minimum payments.
Changes to the base floating interest rate are
simply a matter of changing the rate on the Revolving Credit Type
and this will flow through to the appropriate Loans.
Revolving Credit Loans
Full information is kept on every Revolving Credit
Loan.
Details such as the Loan Credit Limit, Review Date, Current
Balance, Current Interest Rates, PPSR Security Information (a
separate Add-On), Statement Cycle, Minimum Payment, Payment
Schedules and a Notes Log is clearly presented. This provides all
the information required to answer most queries at the click of a
mouse.
Interest Calculation
Interest is calculated on the outstanding daily
balance of the Loan. Interest can be either at a fixed or floating
rate. All interest is calculated automatically in accordance with
the Loan structure meaning month-end processes are streamlined.
Penalty Interest
Where a Loan balance exceeds its predetermined
credit limit, the Penalty Interest Rate is charged on the overdrawn
amount. Penalty Interest is expressed as a premium to the Loan’s
interest rate.
Standard Transactions
Standard transactions can be created for each Loan
and can recur on a regular basis. Standard Transactions can be
calculated as being a set value, a percentage of the balance or a
percentage of the Credit Limit. This could be used as additional
facility fees or to enter Council Rates or Insurances the lender
pays on behalf of the client to ensure the security remains intact.
Transaction Import
Transactions from third party systems, such as Point
of Sale Systems or other billing systems, can be imported into
finPOWER. Transactions are then automatically updated to the
appropriate Revolving Credit Loans thus streamlining much of the
data processing requirements of a finance company.
Automatic Fee Calculations
There is a wide range of fees that can be
automatically calculated and applied to a Loan.
Fees include:
-
Establishment Fees. Calculated and applied at
the creation of a new Loan. They can be calculated as being a
set value or a percentage of the credit limit.
-
Facility Fees. These fees are charged on a
monthly basis and can be calculated as a set value, a percentage of
the credit limit and / or a percentage of the unused portion of the
credit limit on a daily basis.
-
Withdrawal Fees. These are fees charged for
withdrawals made against the Loan and can be calculated as a set
value per withdrawal, a set value per month if one or more
withdrawals are made or a percentage of the value of the withdrawals
made.
-
Overdrawn Fees. If a loan exceeds its Credit
Limit during the month a set overdrawn fee can be applied.
Minimum Payments
The minimum monthly payment for a Revolving Credit
Loan can be calculated in a variety of ways
Minimum repayments can be calculated using the
following methods:
-
Interest only
-
A percentage of the outstanding balance
-
A set dollar value
-
The higher of a percentage of the outstanding
balance or a set dollar value
-
Maturity basis given that the Loan has a
defined maturity date
Minimum payments are calculated with the generation
of the monthly statements and the Payment Schedule is updated
accordingly. Direct Debits (a separate Add-On) can then be processed
from this Schedule.
Payment Schedule
At the end of each month, the calculated minimum
payment is added to the Payment Schedule and has a due date as
defined in the Loan Type. In addition payment arrangements can
be made and entered into the Payment Schedule, thus allowing for
even greater flexibility in making repayment arrangements.
Importing Bank Transactions
finPOWER provides an
interface facility to all major NZ Trading Banks and many Australian
Trading Banks. The
interface can be used to import payment information directly from
Banking Software to speed up payment processing.
Withdrawals
Withdrawals can be entered via the Withdrawal Wizard
that adopts a step-by-step approach to the transaction. Warning is
given if the Loans credit limit is to be exceeded by the withdrawal.
Statements
Monthly statements can be generated and printed for
clients. The statement details all transactions for the month as
well as the minimum payment amount and the due date. Statements can
be customised to reflect the finance companies professional image.
See Also
 System
Overview
Core Features
Variable Loans (Consumer Credit) Features
Loans - Fixed
Interest Features
Depositors Features
Loan
Application Suite
Optional Add-Ons
Remote Processing Options
System Requirements
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