Wholesale Finance

Among the bank-independent financing instruments, wholesale financing is a particularly popular way of balancing the cost of sales and liquidity. In addition to the direct business, it also fulfils a customer loyalty function, as practice shows that whoever finances the warehouse is generally also the preferred business partner for retail financing.

The Wholesale Finance module group of afb Credit Management Solution (afb-CMS) implements tailor-made processes for asset and product selection, application, approval and management of wholesale financing, including warehouse financing and factoring. It covers the entire process chain of the wholesale financing contract, from creation to completion. The scope of services ranges from the selection of the asset to be financed and the individually agreed repayment plans (interest rate markups, liability for interest), recording of the necessary data content with appropriate validation checks, automated search for information, scoring, generation of automated or manual credit decisions via workflow-aided credit processing and disbursement through to contract management and accounting.

Features Wholesale Finance

  • Application for wholesale financing, specifying the asset (with the help of the Catalogue module group, if applicable) and selection of the financial product (repayment schedule) either via the web-based application component or as a serial application via the standard interface
  • Automatic assessment of the application within seconds with regard to double financing and asset or collateral evaluation, determining the financing amount, taking into account discount factors, collateral value and the specific credit limit
  • Automatic and if necessary manual decision taking into account customer-specific stop and knock-out criteria with exact logging of the decision history
  • Workflow-based credit processing with defined test steps up to activation of the contract and execution of payments
  • Capturing of partners, awarding of the credit limit and the individual conditions depending on the rating, maintenance of payment accounts and method of payment, determining the authorised depositories of collaterals etc.
  • Creation of individual repayment schedules specifying frequency or specific redemption dates, the sum of repayments as a percentage or amount, determination of liability for interest payment as well as type and amount of interest rate markup, discount factors for type and age of asset etc.

 

Advantages at a glance

  • End-to-end system: the entire life cycle of Wholesale Finance – from the proposal to termination of contract – is designed as a fully integrated, digital system.
  • All distribution channels: financial services providers are present with a digital solution in all B2B sales channels. Manufacturers, importers, cooperation and trading partners can be addressed as borrowers with tailor-made conditions.
  • Flexible settlement: in conjunction with retail financing, the automated settlement of payment transactions (netting) between retail and wholesale financing is possible.
  • High degree of automation: modern wholesale financing is possible at the highest level of automation with high unit numbers, standardised processes, rapid decisions and automated contract management.

 

  • Complete integration: in the interplay between manufacturers, vendors and financial services providers, this module group integrates the systems of all business partners, thus automating the wholesale financing and factoring processes to an exceptionally high degree.
  • Flexible financial products: wholesale financing with flexible financial products for specific business types and all common asset groups (e.g. motor vehicles, equipment) are mapped throughout.
  • Interaction with collateral management: when activating the contract, and during its term, afb-CMS checks whether all the collateral required under the established rules, such as registration documents, mortgages and mortgage entries, cessions of life insurance policies etc., has been provided and is linked to the master and asset contracts.

 

For more information, please contact us

'Entering vehicle wholesale and retail finance is an important element of our growth strategy. For this we need a powerful, reliable system that can reflect the complexity of our market entry. With afb as a competent partner on our side, we feel well prepared for the future'.

'After a decade of experience, we have established sustainability for our IT landscape through the extension of afb-CMS'.

'The afb consulting teams were very professional, both in terms of business, i.e. processes and organisation, as well as in terms of IT. We were very pleased with the training videos specially created for our users. With afb-CMS we have found the ideal solution, which afb has adapted perfectly to our specific needs as part of the project'.

'We and our dealers are very satisfied with the all-round solution of afb-CMS. The dealers can conveniently control all financing and insurance from a single source and see directly which financing offer best fits the customer.'
Solution paper

Customer journey optimisation based on Business Services

The future of information technology lies in the quintessence of digital transformation: lightweight, agile services. The afb Fast Intregration Business Services provide the possibility of implementing innovative functionalities in legacy systems, without changing their code basis and functionality.

Read solution paper

Case study

FFS Bank: a partnership for innovative credit business

FFS Bank is captive bank for Hyundai and Subaru and a brand-independent financial expert. The partnership of FFS Bank and afb is characterised by close cooperation and great innovative efforts. Since the beginning in 2000, the two companies have been regularly developing new innovations together.

Read case study

Case study

Leading automotive bank: automation in financing and leasing operations

No project without a business case, no investment without a sound basis for decision making. For that very reason, a leading automotive bank decided to work together with the experts of afb. The specific process stages and procedures involved in financing and leasing operations were examined and rated in terms of their optimisation potential as part of a consultation project.

Read case study

Brochure

from mind to market – comprehensive solutions for the financial industry

We combine market-based expertise with a strong aptitude for technological innovative strength, transforming new knowledge into marketable products and services, and focussing on these factors for success.

Read brochure

Solution Paper

Explore your maturity level

How prepared is your company for digitalisation? With the Digital Capability Check-Up you can determine the digital maturity level of your company. At the completion of the Digital Capability Check-Up you will receive the detailed analysis results for your own further use, including the identified potential for optimisation for the digital future.

Read solution paper

Solution Paper

Expert know-how for future-proof solutions

Together with our experienced consultants you will ensure that your strategies and processes are designed to cope with future challenges. We do not just provide you position papers, but support you in identifying, steering and specifying your fields of action as well as in implementing these.

Read solution paper

Fact sheet

Online contract closure with the Universal Contract Closing Process

Customers of all industries and age groups today expect a simple, fast and smooth contract closure. Using the 'Universal Contract Closing Process', you can realise innovative functionalities for the entire process chain required to initiate business: from offer to contract management.

Read fact sheet

Case study

TARGOBANK: growth through entry into automotive financing

The entry into the business field of automotive wholesale and retail financing was part of the overarching growth strategy of TARGOBANK. Within a mere twelve months TARGOBANK AUTOBANK established itself as a competitive automotive bank in a fiercely contested market. With the afb Credit Management Solution, the autobank controls the processes of retail and wholesale financing in a fully intergrated, web-based and modular system.

Read case study