Create a program on Debt Eligibility

Find out in this article how to create a guarantee program based on complex eligibility criteria, and how to launch its distribution with our Debt Eligibility application.

Creating a guarantee program

To create a program on our Debt Eligibility application, you need to be authorized on the Kls Desk with the “Program Manager” role.

As a reminder, there are 2 roles on this application:

1. Program manager(s), who have the right to create, manage, validate and report on a program.
2. Distributor, who is granted the right, via a referent, to make reservations and inform on events related to its guaranteed/subsidized loans.

If you have the right rights, when you log on to the Kls Desk you will be able to access the “Debt Eligibility” application, on the right-hand side of the home page.

Once in the application, you'll find the page for the programs under your management. From this page, you can view the consumption of each envelope, the number of applications and loans contracted, and the distribution end date.

Nb: If this page is empty, you have not yet created any programs.

If you have the rights, click on “Create a new program” in the top right-hand corner to start the creation process!

Then complete the pop-up window. This will contain general information about your program (name, envelope amount, end of distribution, CAP rate).

Once validated, you'll be taken to your program's home page, where you can track envelope consumption in real time. It will be visible to future distributors.

This page can be customized to help distributors take charge of your program's distribution.

You can create a secure document storage space: a dataroom with sub-directories for storing useful documentation. You can also design a distribution process so that everyone knows the key steps involved in obtaining a warranty.

---

Once you've customized your home page, click on “Manage program” in the top right-hand corner to continue with the settings.

There are 6 tabs on this new page, each of which is used to transcribe the specific features of your program into our application.

Let's take a look at each tab:

Program identity

This tab contains some of the information entered during program creation.

You can modify it, and complete the new fields at your disposal.

You'll find, for example, the “Maximum value of conditional loans” which allows you to set a limit on the amount per loan, at program level, or to give information on the guarantee and the type of rating used.

Eligibility settings

This is where you define all the eligibility criteria for your program. This will be the form to be completed by distributors when requesting reservations.

It's also here that you'll be able to retrieve non-discriminatory information that could be useful for reporting purposes.

The tab is divided into 3 segments:

1. Beneficiary

This segment is dedicated to retrieving information and checking eligibility at the beneficiary level, i.e. the borrower customer requesting the guarantee.

2. Beneficiary's project

This is where questions are asked about the project being financed. It is used to understand how the loan will be used and the beneficiary's objective.

3. Beneficiary's loan

In this last segment, you'll be able to retrieve information on the terms and conditions of the loan intended to finance the beneficiary's project.

---

For each of these segments, you can customize the questions and fields to be filled in by distributors, as well as create complex eligibility conditions based on these questions/fields.

There are 2 types of sub-segments:

• Generic questions

Generic questions are simple Yes/No questions for which you can set the parameters to determine whether one of the answers renders the reservation ineligible, or even create a sub-condition linked to another question/field.

A drop-down menu lists all available generic questions. If you don't find the question you're looking for, don't hesitate to contact us so that we can enrich the question database.

• Information on ...

This sub-segment allows you to retrieve more complex information and create more refined eligibility rules. A drop-down list of fields is available for you to add. If any are missing, please do not hesitate to contact us.

There are two types of field:

• • Data: which is a free-entry field (text or number) on which you can impose sub-conditions such as a minimum or maximum number.
  • Choice list: allows you to create a list of all available answers, and to discriminate between certain answers if necessary.

For each sub-segment, you can create eligibility conditions that are interdependent with other fields.

You can, for example, condition the eligibility of a “Yes” answer to a question, only if sales exceed a certain amount. Or define that certain investment themes are reserved for a particular department or departments in order to be eligible.

Everything has been set up to ensure that all the specificities and constraints defined by the program rules can be transcribed, to facilitate distribution (and understanding by distributors).

All these questions and data, which you will be setting up, will form the form that distributors will need to fill in to find out whether or not their customers are eligible.

Portfolio settings

This tab enables the program manager to set thresholds at a more macroscopic granularity: at program level (unlike the previous tab, which acts at reservation request level).

It will therefore be possible to create portfolio balances, based on defined criteria, such as rating, borrower type, etc.

In this way, it is possible to ensure that the program is correctly distributed so that it can be used for all targets, and to avoid one type of target consuming the entire envelope on its own.

Program life settings

This tab is optional. It enables the program manager to offer distributors the possibility of declaring events linked to their guaranteed loan, such as prepayments or defaults.

The program manager can create lists of declarable events, and the distributors concerned will be able to notify the program manager of any significant events linked to their guaranteed loan.

This will enable the distributor to record on his loan any event deemed important by the manager after it has been contracted. Each time an event is reported, the program manager will be alerted by e-mail.

This option enables the manager to stay as close as possible to the reality of his guaranteed loan stock, and to detect any potential anomalies or events requiring special attention, and to communicate these elements to the guarantor if necessary.

Reservation management

This tab is used to define the maximum duration (in months) authorized for reservations and extensions.

Once completed, the Debt Eligibility application will calculate the lifetime of a reservation and automatically cancel any reservation (based on the predefined number of months).

The distributor will be alerted and can, if necessary, re-request a reservation for his customer.

This will have the effect of re-crediting the amount of the reservation to the total amount of the envelope, thus avoiding the immobilization of potential funds and enabling other distributors to offer the guarantee to their customers.

Distributors management

This is the last tab to be completed when setting up the program. It enables you to select the list of distributors authorized to market this guarantee or subsidy program.

The program manager selects the dispensers (at bank, team or user level). It is also possible to impose maximum consumption thresholds per distributor, to ensure that the program is properly distributed among the distributors.

---

Bravo, you've created your program with Debt Eligibility, now publish it!

Once you've completed this last tab, you've finished creating your program!

All you have to do now is return to the program home page and click on “Publish program”. This will have the effect of making the program available to the distributors indicated, so that they can start requesting reservations.