The applications and loan memoranda control module for legal entities and individual entrepreneurs allows to fully automate the entire process of loan memorandum submitting, processing, initial approval, transfer of the memorandum to the committee for final decision and subsequent transfer of fully approved memoranda into the management system for loan agreements (credit conveyor) for granting of all types of loans to corporate clients:
- business loans;
- micro and SME loans;
- overdrafts;
- credit lines;
- syndicated loans;
- other loans.
The module supports loan granting for all possible business projects of potential corporate clients:
- construction and complex infrastructure projects;
- launch of startup projects;
- development of current business of clients, including financing of working capital, non-current assets;
- agricultural loans (farmers – equipment, animals, fertilizers, etc.).
Powered by a built-in constructor, the system allows an organization to independently manage the loan memorandum form (application) for corporate clients based on a built-in constructor:
- to determine required and optional entry fields;
- to determine interconnection of entry fields depending on different values;
- to create and independently edit data drop-down lists.
- The module provides a front office for branches and outlets as well as a back-office interface for integration with the automated banking system of an organization and for integration with external systems/services:
- state services for data provision about clients, guarantors, owners of legal entities and individual entrepreneurs;
- state services for data provision about incomes of shareholders/founders (tax office, social insurance fund, etc.);
- services for credit bureau data provision both about legal entities or individual entrepreneurs, and about shareholders, guarantors;
- services of state extracts on movable and immovable property;
- other services.
The loan financing memorandum is closely integrated with the Customer relationship management module (CRM), as a result of which all required corporate client data are filled in to the memorandum from the client data sheet in the automatic mode.
In addition, the system provides a number of control procedures at the time of memorandum fill-in for granting of loan to corporate clients:
- control over the general limit of the financial organization (no more than the agreed amount under other loan memoranda/no more than a certain amount from the capital of the financial organization, etc.);
- control of a valid director's ID available in the system;
- control in terms of persons associated with the financial organization;
- availability of all required attached documents and graphic data.
- The system checks all possible relationships of the potential borrower in terms of participation in other loans as a borrower, guarantor, related party and other checks.
- The following sections are included in the loan memorandum for corporate clients:
- financing terms (term, currency, amount, rate, grace days and other parameters that are defined in the loan product constructor);
- client profile (general information about the client, contact information, management, founders, related companies);
- market analysis (market share of a potential borrower, major competitors, major suppliers, strengths and weaknesses of a business, advantages of manufactured goods and services, business seasonality, environmental and social impact and other data as requested by the organization);
- project analysis (type of financing, project stages, total amount of the project, interest of financing on the part of founders and organization, experience in this project and other information);
- the purpose of the financing (working capital, equipment acquisition, and other purposes);
Financial analysis is one of the key units in the loan memorandum on the basis of which the organization makes a decision. This unit includes subsystems:
- client's balance sheet. The functionality of the system involves the built-in constructor with which an organization's specialist can independently create borrower balance sheets for an unlimited number of dates based on data provided by the client. The functionality of the system also provides a unique opportunity for a specialist of the organization to independently create balance sheets items without any restriction for legal entities and/or individual entrepreneurs within the specified sections (current assets, non-current assets, current liabilities, long-term liabilities, capital). In such a way, it is possible to analyze the balance sheets of legal entities and/or individual entrepreneurs as per different dates according to their internal detailing, taking into account general accounting principles. The system also provides the ability to automatically upload the balance sheet from Excel according to a set template;
- profit and loss statement — PLS. The functionality of the system involves the built-in constructor, on the basis of which an organization's specialist can independently create borrower's profit and loss statements for an unlimited number of periods based on data provided by the client. The functionality of the system also provides a unique opportunity for a specialist of the organization to independently create PLS items without any restriction for legal entities and/or individual entrepreneurs within the specified sections (Incomes, Expenses). In such a way, it is possible to analyze PLS of legal entities and/or individual entrepreneurs as per different periods according to their internal detailing, taking into account general accounting principles. The system also provides the ability to automatically upload PLS according to a set Excel template;
- cash flow statement — CFS. The functionality of the system supports a built-in constructor, on the basis of which an organization's specialist can independently create client's cash flow statements for an unlimited number of periods based on data provided by the client. The functionality of the system provides a unique opportunity for a specialist of the organization to independently create CFS items without any restriction for legal entities and/or individual entrepreneurs within the specified sections (Cash Flow from Operations, Cash Flow from Investments, Cash Flow from Financial Activities, Cash at Beginning of Period, Cash at End of Period). In such a way, it is possible to analyze CFS of legal entities and/or individual entrepreneurs as per different periods according to their internal detailing, taking into account general accounting principles. The system also provides the ability to automatically upload CFS according to a set Excel template;
- profit and loss statement (PLS), projection. The functionality of the system supports a built-in constructor with which an organization's specialist can independently create projections of borrower's profit and loss statements for an unlimited number of periods. The functionality of the system also provides a unique opportunity for a specialist of the organization to create items of the projected PLS independently or automatically based on the actual data in PLS by using a certain ratio for further manual data adjustment within the specified sections (incomes, expenses). In addition, it is possible to automatically upload the projected PLS according to the set Excel template;
- cash flow statement (CFS), projection. The functionality of the system supports a built-in constructor with which an organization's specialist can independently create projections of client's cash flow statements for an unlimited number of periods. The functionality of the system also provides a unique opportunity for a specialist of the organization to create items of the projected CFS independently or automatically based on actual data in CFS by using a certain ratio for further manual data adjustment within the specified sections (Cash Flow from Operations, Cash Flow from Investments, Cash Flow from Financial Activities, Cash at Beginning of Period, Cash at End of Period). In addition, it is possible to automatically upload the projected CFS according to the set Excel template;
- cross-check. The functionality of the system includes a cross-checking mechanism and an analysis mechanism by minimum financial indicators set in loan constructors regarding particular products. For example, the system automatically checks the comparison of net profit in PLS for the period and the differences in retained earnings in the borrower's balance sheet. Based on the borrower's financial statements, the system also performs calculations of various ratios (pre-configured in loan constructors) and provides a comparative analysis with the minimum indicators in products;
- client's credit history. The system's functionality supports downloading of credit history from Credit Information Bureaus not only for the client, but also for founders, guarantors, and other related parties. This allows to perform a comprehensive financial analysis of legal entities and individual entrepreneurs in terms of possible risks for the organization;
- current account turnovers. The functionality of the system allows the analysis of bank statements and turnovers on current accounts of legal entities and individual entrepreneurs for different periods. This functionality provides an analysis of cashless transactions not only of the organization itself, but also of statements from other financial and credit institutions. This unit allows to analyze the possible other income of the organization: commission fee for cash and settlement services, income from payroll products, fee for servicing payment terminals, etc. This information also serves as an additional verification mechanism for all financial statements of the client;
- security – collaterals. The functionality of the system allows to register various types of security within the framework of the loan memorandum in accordance with the minimum values in the loan constructors of the loan product. The system supports accounting and registration by variety of parameters (location, area, arrangement, condition,
cost/evaluation and others) of various types of security and their cover ratio:
- real estate;
- transport;
- cash/deposits;
- guarantor/co-borrower;
- other collateral;
- security assessment. The functionality of the system supports the introduction of various methods of security appraisal, including reports from specially licensed and accredited organizations;
- documents and graphic data. The system's functionality controls the minimum package of documents for each product and ensures the storage of electronic document flow of legal entities and individual entrepreneurs in the framework of the loan memorandum. This unit includes not only borrower documents confirming the fact of his/her registration with the respective state agencies, and other statutory documents, but also scanned copies of documents confirming the identity of company shareholders, or registration documents of company shareholders, documents confirming the identity of guarantors, or registration documents of guarantors. The system does not have any restrictions on the number of documents included in the framework of the memorandum;
- monitoring regulations. The functionality of the system provides the ability to change the minimum conditions of loan monitoring set in the loan constructor within the framework of the loan memorandum. According to the decision of the respective persons and/or authorities, the financial monitoring arrangement, monitoring frequency, list of requested information, etc. can be changed. In such a way, the system provides flexibility in this regard in order to minimize the risks of the organization in making certain decisions;
- loan memorandum approval procedure. System's functionality is deeply integrated into the control module for loan committees and workflows on loan application approval, so that the system directs all employees of the organization along the preconfigured decision-making chain.
The module includes the following functional units:
- creation and registration of loan memoranda;
- procedure before filling in the loan memorandum. The system allows to postpone the preparation of a memorandum for a certain period;
- procedure of sending of loan memoranda for approval/confirmation;
- procedure for an automated borrower financial analysis;
- procedure for borrower data compliance with the terms of selected product.
- This module also supports setup and automated generation of required printing forms:
- loan application;
- loan memorandum form/client profile;
- consent to the processing of personal data;
- consent to the queries to various data sources, including a query to credit bureaus;
- other documents.
This module is used not only for the initial granting of all types of loans to legal entities and individual entrepreneurs, but also for repeat granting. Also, the module is used for filling-in and creating consultation sheets, on the basis of which loan memoranda can be created. Additionally, the functionality of this module allows to restructure the already granted loans with follow-up approval of such memorandum under the pre-configured decision-making chain.
As a result, the functionality of the system fully meets all the needs of a financial organization in legal entities and individual entrepreneurs financing regarding the creation of a loan memorandum and sending it to the approval process