Inventory Funding

About the Client
The client is a globally diversified financial services company with 28 distinct businesses, with assets of US $300 billion and net earning of US $3.8 billion and achieved a 23.5% return on equity in 1998. Its businesses are in the areas of Equipment Management, Consumer Services, Mid-Market Financing, Specialized Financing and Specialty Insurance and include global operations in Europe, Asia and Latin America.

Challenge
The client aimed at implementing Inventory Funding as a new line of business. The arrangement was to provide funds to the dealer for stocking of cars and consumer durables. The client company made payment to the manufacturer on behalf of the dealer for purchase of the stock. The funding enables the dealer to hold larger stocks thereby resulting in larger retail sales volumes. The solution needed to keep track on these details.
The client company finances the retail customers as well, thereby, adding to its retails clientele. The interest rate on the dealer funding is inversely proportionate to the amount of business generated by the dealer by way of retail customers.

Solution
Inventory Funding System from Indus helps to satisfy the different business requirements. The solution supports the growth plan of the organization in terms of volumes, functionality and technology. The solution helps to reduce the turnaround time for empanelment. The Complex logic and calculations were simplified by the IF system automation & thereby eliminates all possible human errors. The system allows all possible controls and locks to ensure that vital interests are safe guarded. The customized solution enables the officers to access critical information quickly and easily, making the sales process more effective. The solution supports customer relation processes and helps delivering excellent customer service.