Programs

PROGRAMS

1. Purpose

Programs is an essential setup component, and no leasing Quotes or Applications can be completed without Program selection. Leasing companies use programs as a campaigns to promote certain asset model or to specify pricing, residual values, interest rates etc.

2. Program setup

2.1 General

Code, Program Name, Conditions. The fields are used to uniquely define program. The Code is used widely in the system and must have short and clear value for this reason.
Currency Code - If a company is operating with lease agreements with various currencies, then separate program must be setup for each different currency.
Valid From and Valid Until. The fields allow to specify period in which new Quotes using this program can be created.
Product Status. Field to save program from accidental changes and to control if it is available to use for quotation and application. Available statuses:

• New – new financial product configuration in progress.
• In Deliberation – program configured, approval in progress.
• Active – program is approved and can be used on deals.
• Expired – has been active but ended.
• Unrealized – has NOT been approved, no deals created under this financial product.
• Terminated – has been active but ended early.

Individual/Business – defies if program can be applier for individuals, business or both.
Originator Type - defies for which Originator Type program can be applied.
Participating Originators – defies which originators can use program.
Applies To Manufacturer – defines for which Asset Brands program can be applied.
Applies To Asset Group - defines for which Asset Group program can be applied.
Applies To Asset Categories - defines for which Asset Categories program can be applied.
Applies To Models - defines for which Asset Models program can be applied.
Applies To Fin. Product – defines for which Financial Product program is applicable.
Possible Terms – defines which contract terms can be applied.
Possible Frequencies – defines which payment frequencies can be applied.
Asset New/Used - defines if program can be applied for new or used assets.
Min. Downpayment % Required – defines minimum downpayment % on schedule required.
Max. Downpayment % Allowed – defines maximum downpayment % on schedule allowed.
Min. Commissions Amount – defines minimum commissions amount to originator.
Max. Commissions Amount – defines maximum commissions amount to originator.
Schedule Type – defines if schedule calculation is linear or annuity.
Fixed Rate – defines if fixed interest rate should be used on schedule.
Term – default contract term.
Frequency – default instalment frequency.
Variable Interest Code – defines if variables interest is applied on schedule and which code.
Var. Int. Date Method – defines method for initial variable interest rate.
Var. Int. Change Method – defines variable interest rate change method. Contract/Installment Date or Fixed Date.

2.2 Program Rates

Program rates allow to setup interest rates which can depend on asset, amount finance, contract term parameters. When program is selected on schedule, system automatically drives interest rates from program rates table.

Fin. Product – financial product code.
Asset Group – asset group code.
Asset New/Used – defines is asset new or used.
Min NAF – minimum net amount financed.
Max. NAF - maximum net amount financed.
Asset Age at Lease Start (Months) – defines asset age at contract commencement.
Min. Term (mths) – minimum contract term months.
Max. Term (mths) – maximum contract term months.
Base Rate – base interest rate on schedule.
Standard Rate – standard interest rate on schedule.
Min Rate – minimum interest rate on schedule.
Max Rate – maximum interest rate on schedule.
Valid From – valid from date.
Valid Until – valid until date.

2.3 Commercial Risk Loadings

Commercial Risk Loadings allows to configure additional interest rate components.

Item. Interest Component name.
Add to Rate – rate component to be added to total interest rate.
Valid From – valid from date.
Valid Until – valid until date.

2.3 Subvention

Subvention allows to configure a scenario when part of the interest rate is subsidized by a third part. To use a subvention user must configure Standard Rate lover than Base Rate on Program Rates section and subsidized amount will be calculated automatically on schedule.

Calculate Subvention. Defines if subvention calculation is enabled.
Subverted By. Defines a third party which is subverting part of an interest.