Should loan impairment or late payments occur during the contract duration, FlexFinance provides the option of handing the claim over to a debt collection agency or to prepare for sale. This can be carried out for individual cases or for claims combined into a portfolio.
Transfer to a debt collection agency
Non-performing loans can either be passed on to an internal department or handed over in trust to a debt collection agency. Claims that have been given to a debt collection agency are charged off in FlexFinance and deactivated for further processing. Proceeds from the debt collection agency are captured directly in the general ledger.
Sale of receivables
Claims can also be sold in addition to the option of debt collection. When claims are sold, they are charged off and the proceeds for the sale are captured directly in the general ledger.