Overview
Contract Management System (CMS) is a comprehensive retail solution for captive finance, vendor finance, and general purpose banking companies. Blazing the trail in asset finance systems, Contract Management System is one of the most robust, flexible and scalable systems available today.
Contact us for more information on Contract Management System.
Industries
Finance and Leasing
Specifications
CMS is a comprehensive system leading the way in Asset Finance. The System can be divided into three sub-systems
- Contract Activation System (CAS)
- Accounts Receivable Management (ARM)
- Collections.
Contract Activation System (CAS)
CAS consists of the following modules:
Contract Creation
The system allows for contracts to be created, imported from CAP or other third party application. It generates the rental plan, repayment/amortization schedule, prepares stationery and receipts based on the financial product and terms. This module also activates the contract.
Contract Modification
This module allows the functionality to make modifications to an existing contract without terminating it. There are two types of modifications, Financial and Non-Financial.
Financial Modifications
Financial Modifications (also called Restructuring) includes changes in receipt of lump sum payment, payment frequency, and payment day. It also includes Partial termination of the contract (for contracts with multiple assets)
Non-Financial Modifications
These include changes in customer’s address, name, guarantor, payment method etc.
Disbursements
The system allows disbursement of payments to different business partners on account of cost of asset, commission, brokerage fee, other charges and fees etc. It generates SWIFT file for interfacing with banks to make different type of payments.
Commission / Subsidy Management
The system manages commission for all types of business partners and allows offering subsidy on rental or interest rate.
Tax Management
This module calculates different taxes as configured by user and as per local laws, rules and regulations. It also generates tax invoices and reports that can be sent to tax authorities.
Insurance Management
The system maintains complete details and history of insurance contracts. The system manages disbursements to the insurance companies, insurance commission and also allows insurance financing.
Registration Management
The system also maintains complete registration history for assets (for asset based financing). It can include registration for vehicle, equipment or other assets.
Contract Closure
The system efficiently manages the process of terminating a contract. By ensuring proper settlement the system takes care of refunds (if any), recovery of shortfall and written off credit.
Account Receivable Management (ARM)
ARM consists of the following modules:
Periodic Processing
The system allows running a series of processes on a periodic basis. The routines may include processes like income recognition, monthly management reports, amortization reports etc.
Invoicing & Billing
This module allows raising invoices/reminders against any receivables such as rentals, fees etc. It allows printing of invoices under user-defined criteria.
PDC Management
The system boosts a comprehensive Post-dated cheque management module. It allows user to print, hold any PDC or replace it with another PDC(s) or mode of payment.
Receipt Processing
This module processes and settles all types of Receipts (like fee, charges, rentals etc) received from any Business Partners (customer, dealer, co-borrower, insurance company etc).
Bank Interface
The ARM system has a Bank Interface module in which all the transactions with the banks are managed. This module can interface with any bank using any method required.
Overdue Handling
In cases when a payment is overdue, the system calculates and applies overdue charges. It can also interface with government departments or credit bureaus to send the overdue/default information.
Collections
Collections consists of the following modules:
Delinquency Provision
The system calculates both general and specific provision and generates accounting entries accordingly. It also makes adjustment in case of recovery against write-off and allows reversing the accounting entries in case of recovery against specific provisions.
Repossession & Release
This module kicks in once a request is raised to repossess a financed asset. The system stores all the details of the process and also allows releasing the asset back to the customer.
Remarketing
The system effectively manages the complete remarketing process. It manages asset valuation and charges and the auction process. It also allows refinancing the assets and accepts payments for sale.
Litigation
The Litigation module maintains complete details of the legal activities related to the contract or customer. Litigation activity can be initiated at any point in time and under any circumstance.
Common Modules
The following four modules are available in POS, CAP and CMS:
Business Partner Management
All the entities (Individual or Corporate) that are directly or indirectly connected with the system are treated as Business Partners. Business Partners can have multiple roles e.g. customer, dealer, guarantor, banks etc. Different credit limits can be defined which can be fixed or revolving. Relationships between the Business Partners can also be defined.
Financial Product Management
This module allows defining different types of financial products such as Personal Loans, Lease Finance (Operating Lease, Finance Lease), Non-Lease Finance (Hire Purchase, Mortgage), Consumer Sale by Installments, Installment Contracts, Property Loans & Franchise Finance (Debt Finance, Equity Finance). It also allows defining product groups as well as attaches different parameters and services to the products.
Asset Management
Asset Management module maintains a complete information of assets for evaluation of asset based credit requests and also for multiple stages throughout a contract lifecycle. It also includes different interfaces to retrieve/pass on the asset information as required.
Workflow Management
A very flexible and powerful workflow management system is provided. Different users with their roles and privileges can be created through the administration module and criteria can be assigned to them. The system will assign the incoming applications automatically to different users based on their roles and the criteria assigned to them.
Benefits
- Specially designed for finance products including:
- Lending, Leasing, Asset Finance and Corporate Products
- Supports Fixed and Variable Interest Rate Contracts
|
.jpg)
