The system uses templates to capture all of the parameters required to create payment plans that are most likely to minimize defaults and maximize returns for the company. Flexibility is crucial, allowing individual businesses, large corporations and regional players to create offerings specific to their needs, demographics and considerations. It is easy to get started with our quick, two-step training program.
Step One: Completing the Templates (Owner and/or Management Team)
Before the initial implementation, you will be provided a template worksheet that serves as the starting point for your plan design. It is completed with the recommended parameters, but during review with your ExtendCredit representative, you can make changes quickly and easily to best fit your customer demographics and specific needs. Your EC team will configure the templates in the system for you. If you need to adjust parameters, simply highlight the changes by the Plan Category and send it to the EC team and we will take care of it for you. For larger organizations, set up and risk mitigation controls can be centrally controlled and managed internally.
Sample plan types currently in the EC system include:
EC has found that our partners like to offer different plan parameters (down payment, interest rate, length of term, etc.) for different categories of services, product and treatment. The categories can be defined by you. For example, here are some generic categories:
- Friends and Family
- Accounts Receivable
By having different plan categories, you can set up different dollar ranges, terms, interest rates and down payments for each plan type. This is important since different services and products have different profit margins and risk considerations.
For each plan category, there are two templates. The first template defines the interest rate, down payment requirement and credit rating needed (if any). The second template defines the plan terms. Below is an example:
Function: Defines what interest rate and down payment is required by credit rating
The first template allows the interest rate and down payment to be adjusted by credit rating. Those with better credit ratings are usually seen as lower risk and get lower interest rates and down payments. See below:
- Credit Rating: the VantageScore of the applicant.
- Interest Rate: rate to be charged per vantage score.
- Min Down: minimum % of total required as a down payment tied to credit rating.
Function: Outlines what financing is available based on credit rating and loan amount
Template two sets up the plan design and is the heart of the actual plan offering. It sets up the dollar ranges combined with what term duration will be made available by what credit rating. See below:
The plan design template is structured to allow management to design the terms for each offer they wish to allow.
- Min and Max Plan Amount: outlines the dollar range allowed by the offer. It is tied to the term duration and credit rating.
- Term Duration: specifies the number of months for repayment that are acceptable. The system will show a separate offer for each term listed. Tip: when setting term duration, consider your acceptable time frames for getting your money.
- Credit Rating: a bracket that represents the VantageScore of the consumer. Get Offers assumes that bank rating is always “Accepted” and fraud rating is “Low.”
Your EC team is with you at every step to answer any questions you may have. Once the templates have been created for all plan types that you wish to offer, your EC team will configure them into the system for you. As soon as you have completed the worksheets, send them to your account advisor with a confirmation email so that they can configure your Get Offers templates in the system.