Should loan impairment or late payments occur during the contract durationIn case of a default or overdue payments during the loan term, FlexFinance provides the option of handing the claim over to a debt collection agency or to prepare it for sale. This can be carried out done for individual cases or for claims combined into a portfolio.
Transfer to
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debt collection
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Non-performing loans can either be passed on to an a competent 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 posted directly in to the general ledger.
Sale of
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claims
In addition to the option of debt collection, claims can also be sold. When claims are sold, they are charged off and the proceeds for from the sale are captured posted directly in to the general ledger.