Debt Eligibility's key features

In this guide, you'll find a macro view of the various features available in Debt Eligibility, our application dedicated to the management and distribution of eligibility-based guarantees.

Introduction to Debt Eligibility

Debt Eligibility is a tool for creating and configuring guarantee or subsidy programs with the aim of distributing them through a network of identified players.

Debt Eligibility was created :

• to make it easier for the network to sign up to programs, through a clearer, more educational eligibility engine
• To simplify the monitoring, management and reporting of guarantee envelopes.

The flexibility of our application means it can be adapted to any type of need, whether :

• programs guaranteed by third parties (EIB, EIF, government guarantees, BPI, EBRD, etc.)
• Guaranteed programs linked to international agreements (“Green Loan”, Sustainable Linked Loans, ESG, etc.)
• National, regional and even local subsidy programs
• Private guarantee programs specific to the company's own internal strategy.

Our application operates on the basis of two distinct roles:

1. The program manager, a Kls user who has the rights to create, manage, validate and report on a program.
2. The distributor, a Kls user who obtains his rights, via a manager, authorizing him to make reservations and enabling him to report on life events linked to his subsidized loans/guarantees. 

Each program has its own independent control panel, enabling you to view activity and consumption of the guarantee (or subsidy) envelope.

Debt Eligibility's functionalities are divided into five parts, corresponding to the phases in the life of a program:

Program creation & setup > Reservation requests > Request validation > Activity reporting > Guaranteed loan life.

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Below is a macro view of the functionalities available for each phase.

You will find redirected links for more details in each section.

1. Creating & setting up a program

Program creation is performed by a program manager. This tab is used to define the program's various modalities, eligibility rules and any other specificities that may be linked to it.

The creation phase is divided into 6 tabs, explained below.

1. Program identity tab, which lets you define general program information, such as the total amount of the associated envelope, duration, warranty coverage, etc.
2. Eligibility settings tab, for configuring program eligibility criteria. From a simple Yes/No question to complex conditions, this is where the form to be completed by the distributor to find out whether his customer's financing is eligible is created.
3. Portfolio settings tab, which enables you to break down the distribution of the envelope according to conditions at program level. You could, for example, decide to allocate 20% of the envelope to customers with a rating below D, or to SME-type companies, etc.
4. Loan servicies tab, optional, this tab enables distributors to communicate defaults and guarantee calls on their conditional loans, once contracted.
5. Reservation management tab, which defines automatic rules for reservation duration and extension.
   NB: If the specified period is exceeded, the amount reserved by a distributor reverts to the amount available in the envelope.
6. Distributor tab, to define the list of users authorized to distribute this program, with the option of breaking it down by distributor.

Once the program has been created, the manager can launch its distribution; this will make it accessible to all selected distributors, who will then be able to make their first reservation requests.

The distribution phase can be suspended at any time, to allow the manager to modify certain program parameters.

2. Reservation request

Once a program is in the distribution phase, authorized users will be able to request guaranteed loans.

From their space on the Kls Desk, distributors can see all the programs they can market/distribute.

Each distributor can, why not directly with his customer, fill in the eligibility form set up by the program manager, and find out in real time whether, on the basis of the information provided, the customer can benefit from the program.

Each reservation request has its own dataroom, enabling information such as documentation or supporting documents to be shared with the right people.

If all the conditions are met, the distributor will be able to send his reservation request to the program manager, and our application will reserve the amount of the guarantee requested by the distributor until the loan is contracted, making the consumption of part of the envelope “official”.

3. Validation of reservation requests

This is the program manager's first intervention in the distribution process.

Once a distributor has passed the eligibility form stage, they can send in their reservation request. From there, the program manager can review the request, examine the supporting documents and validate (or not) the reservation request.

It is therefore up to the program manager to consult and check the reservation request.

For each reservation, you can :

• Refuse the reservation - for example, if any information is incorrect
• Put on hold - if you need to consult the guarantor on a matter of interpretation
• Request additional information - if attachments are missing
• Return to draft - if incomplete
• Validate the reservation - if everything is in order

In all cases, the action will be communicated to the distributor concerned via e-mail notification.

Upon validation, the distributor is then authorized to transform his reservation into a loan. He/she can then add the contractualization information, in order to transmit everything to the manager for reporting purposes.

For a program with the “loan servicies” option, the distributor will be able to declare all types of events to the manager to ensure maximum follow-up.

4. Program activity reporting

A data extraction module is available for each program. This enables the manager to simplify the reporting phase, whether this is linked to a requirement with the guarantor institution, for regulatory reporting or simply for internal purposes.

As all loans and reservations are centralized in the same place, managers can generate customized export templates to suit their needs.

NB: Data from external sources can be injected into the tool via a template to be completed.

This module also enables you to track the various key reporting dates to ensure that you are up to date.

Once the template has been created and the data selected, the manager can generate an Excel file, to be sent to the guarantor or processed internally.

It is also in this reporting phase that the manager will be able to inform all distributors who have made guarantee requests whether they have been accepted and validated by the guarantor.

All the manager has to do is change the “Validation date” for the reservations concerned, and the distributors who made the requests will be notified by e-mail.

5. Life of the guaranteed loan

On each program, the manager can activate the “loan servicies” option, which gives access to the creation of personalized event lists. The manager will be able to create any type of event he needs to know about (early repayment, refinancing, default, etc.).

This will enable the distributor to log any event deemed important by the program manager on his loan in Debt Eligibility, after it has been contractualized. 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.

To find out more, visit our articles dedicated to the management of events and guarantee calls, from a program manager's point of view, or from a distributor's point of view.

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