Client Maintenance / Client Parameters / Collateral Advance Rate

Client Parameters Overview

The Collateral Advance Rate page allows you to set the advanced rate as well as low and high notification threshold for each collateral type and by division if applicable.

Users can specify a collateral rate for each division code and collateral type. You can add, edit, and delete a Division. In addition, you can add, edit, delete and export collaterals.

This page allows you to set the advanced rate as well as low and high notification threshold for each collateral type and by division if applicable.

The collateral group section allows the user to add sublimit for single collateral as well as multiple collaterals. The collateral group is created for sublimit and Reserves.

Navigation: Client Maintenance → Client Parameters → Collateral Advance Rate

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Division Code

Collateral Advance Rate

Collateral Group

Fields	Descriptions
Group Type	Specifies the collateral group type. The system default value is Sublimit.
Group Name	Specifies the collateral group name.
Collateral Type	Specifies the type of collateral. For example, Receivables, Inventory and Other collateral.
Collaterals in Group	Displays the group of collaterals which has been created in Collateral Advance rate section, based on the option selected under Collateral Type field. You may select one or more collaterals.
Value	Specifies the sublimit value. The sublimit value should be lesser than the AR Sublimit Cap/Inventory Sublimit Cap/Other Sublimit Cap values defined in Basic Parameters page. If the value exceeds, an error notification appears. Refer to the screenshot:

To set up a division code and its collateral advance rate, perform these steps:

1. Under the Division Code section, click the  button.

• In the Name field, enter the name of the division.
• In the Description field, enter the description of the division.
• Click the  button.

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2.Under the Collateral Advance Rate: DIV section, click the  button.

• In the Collateral Type field, select the collateral type from the drop-down menu.
• In the Collateral Name field, enter the collateral name.
• In the Item Number field, enter the item number for each collateral type.
• In the Sub Limit field, enter the sub limit value of a collateral to charge.
• In the NOLV field, enter the inventory source value.
• In the LTV/Advance field, enter the advance value for the collateral.
• In the Adjusted Advanced Rate, enter the advanced rate value.
• In the Low Value field, enter the lowest value for the collateral.
• In the High Value field, enter the highest value for the collateral.
• Select the Ineligible checkbox if you need to make the collateral ineligible.
• In the Ineligible Reason field, select the ineligible reason for the collateral from the drop-down menu.
• In the Currency drop-down, select the currency for the collateral type. The drop-down shows the list of currency codes defined under Currency Codes page.
• In the Based on field, select the option from the dropdown list.
• In the Calculated Cap By column, select the option from the dropdown list.
• In Max Cap % field, enter maximum Cap percentage value.

3. Click the  button.The Collateral Advance Rate is successfully created.

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If you need to associate the collateral that you create under a division, select the checkbox under Division Code and create Collateral Advance Rate and Collateral Group for the respective division.

When you click on any division row under Name column of Division Code, the system displays the Collateral Advance Rate data and Collateral Group data for the respective division.

The system displays the Collateral Group section based on the setting done under Roles and Permissions page. The Collateral Group flags are enabled to check ON only if the Collateral Advance Rate flags are checked ON under Roles and PermissionsRoles and Permissions page.

If user modifies the collateral name, then the modified collateral name gets automatically updated in BBC Files Required page and Upload BBC Data Files page.

If user enters the duplicate collateral name while creating a new collateral advance rate, then the system shows an error notification irrespective case sensitive or case insensitive.

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To Set up Collateral Group, perform these steps:

You may set up a division code before setting up the collateral Group.

1. In Collateral Group:DIV section, Click the  button.

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2. In Group Type column, select the collateral group type from drop-down list.

3. In Group Name column, enter the collateral group name.

4. In Collateral Type field, select anyone of the collateral type such as Receivables, Inventory and Other Collateral, from drop-down list.

5. In Collaterals in Group column, select one or more collaterals from the list.

The system displays the options in Collaterals in Group field based on the option selected in Collateral Type field.

6. In Value column, enter the sublimit value.

7. Click the  button. The Collateral Group is created successfully.

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To delete the Division Code, perform these steps:

1. Under the Division Code section, select the Division Code that you wish to delete.

2. Click the  button. A Delete pop-up window appears.

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3. Click the  button. The selected Division Code is deleted and a success message “Division Code was successfully deleted.” appears.

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To delete the Collateral Advance Rate, perform these steps:

1. Under Collateral Advance Rate section, select the Collateral Advance Rate that you wish to delete.

2. Click the  button. A Delete pop-up window appears.

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3. Click the  button. The selected Collateral Advance Rate is deleted and a success message “Collateral Advance Rate was successfully deleted.” appears.

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To delete the Collateral Group, perform these steps:

1. Under Collateral Group section, select the Collateral Group that you wish to delete.

2. Click the  button. A Delete pop-up window appears.

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3. Click the  button. The selected Collateral Group is deleted and a success message “Collateral Group was successfully deleted.” appears.

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You cannot delete the collateral group if the collateral group is in use or has dependency with the sublimits.

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You cannot add same collateral name in more than one Group type. If user adds the same collateral name in more than one group type such as sublimit, then the system shows an error notification.

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To export Collateral Advance Rate data, perform these steps:

1. In Collateral Advance Rate section, Click the  button. A Collateral Advance Rate:DIV page appears.

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2.  Click the  button to export the collateral advance rate data in an excel format. A pop-message “Do you want to open or save collateral_advance_rate.xls from cyncsoftware.com?” appears.

3. Click Open if you want open the extracted collateral advance rate data or click Save. The Collateral Advance Rate data is extracted in an excel format.

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To export Collateral Group data, perform these steps:

1. In Collateral Group section, Click the  button. A Collateral Group:DIV page appears.

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2. Click the  button to export the collateral advance rate data in an excel format. A pop-message “Do you want to open or save collateral_group.xls from cyncsoftware.com?” appears.

3. Click Open if you want open the extracted collateral advance rate data or click Save. The Collateral Group data is extracted in an excel format.

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Item Number –  It is a unique number assigned to each collateral type. The system shows the Availability and Total availability based on the item number. The same  number can be used for multiple collateral types.

When the same item number is used for 2 collateral types, then the system shows the Total Availability by the sum of the collateral types for the item number. When the file is exported, it shows the Availability and Total availability of the collateral types based on the specific item number.

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Swing Line Collateral type

The Swing line feature is a sub limit where a lender grants a short term loan to cover possible shortfalls from other debt commitments. Swing line cap reduces the credit line which is applied to AR cap. It allows to update AR cap without changing the credit line value.

For example, If Credit Line = 2,000,000 and AR cap = 0 and Swing line cap is 500,000, then Credit line remains the same but client receivables is updated to 1,500,000.

To set up Swing line loan, perform these steps:

1. Go to Client Maintenance → Client Parameters → Collateral Advance Rate.

2. Click the  button and select Other collateral from Data file type and enter the collateral type (Swing line).

3. Enter LTV/Advance rate as 100 % and click Save.

4. You can enter the swing line value under Other collateral page.

Enabling Other Collateral to handle Financial Assets

Below are the steps to enable - Financial Assets:

1. Click on the Other Collateral hyperlink.

The Other Collateral in Collateral Advance Rate must be a hyperlink for the user to click only if the LTV/Advance Rate > 0 for the Other Collateral and Roles & Permissions section is enabled.

2. A Market Assignment Pop-Up appears.

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3. Enable Toggle to get the Financial Assets page.

4. Click on Save button on the Market Assignment Pop-Up.

5. A success message “Market Assignment was successfully updated” appears.

6. The Collateral Type of the respective Other Collateral will have an icon in green adjacent to the hyperlink indicating the Financial Assets can be added to the Other Collateral.

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