Generate Pricing Using Rate Card

A Rate Card is a chart that contains the various lending options available from a lender. An example would be the various fixed deposit charts that are offered by banks. You must set up the rate card for a CL product, and the application for that CL product automatically uses the yield value specified in the rate card for pricing the deal. One rate card can have multiple rate card details by varying the elements like financed amount, term, interest rate, and rate factor to give you the flexibility to address diverse borrower or lessee preferences. When you generate pricing, multiple pricing options are generated corresponding to the rate card details, and you can select the pricing that is most suitable. 

You can review all the options with your customers and re-price the deals to arrive at the best solution for your customer.  Credit rating can also affect pricing, and you can set this up in Q2 Origination through the Credit Rating Matrix. For example, your organization may give a loan of $50,000 @12% for a year to a borrower with a very high score (or a top rating like A), whereas only $10,000 @12% for a year could be borrowed by a person who falls in the lowest credit bucket.

For information on lease rate cards, see Lease Rate Card section in the Q2 Origination Administration Guide.

Prerequisites

Before generating pricing using rate cards, ensure the following prerequisites are met: 

• The Rate Card is set up for the lease CL product.

• The Financing Options is set up for the lease CL product.

Steps

To generate pricing, perform the following steps:

1. Log in to your Salesforce account.
   

2. Go to the Applications tab and select the application to process.
   

3. Go to the Lease Pricing tab, and then select Generate Pricing. 
   

   On successful operation, the message "Pricing Generated..." is displayed.
   

   Based on the asset value details, rate card details, and additional determining factors that you specified, one or more pricing options are generated.
   

   The page also displays other details like the upfront payments for the application. 
   

4. Select the required pricing option checkbox, and then select Select Pricing.
   

   Note:

   If you selected Auto Decisioning for the application, the Interest Rate or Rate Factor from the selected pricing option is updated in the application and a new amortization schedule is generated. Else, go to the Application tab and edit the Interest Rate and any other field, for example, Loan Amount, based on the rate card and save your details. 

Override Pricing

The Payment Amount field is updated based on the selected pricing option.

Based on the pricing generated from the rate card, you can override the payment amount or yield or the rate factor. This enables you to solve for a rate card, payment amount, or yield so as to define custom financed amount calculation through configuration.

Prerequisites

Before generating pricing using rate cards, ensure the following prerequisites are met: 

• The Rate Card is set up for the loan or lease CL product.

• The Financing Options is set up for the loan or lease CL product.

Steps

To override pricing in the application, perform the following steps:

1. Open the required Lease application ID.
   

2. Select the Lease Pricing tab.
   

3. Go to the Pricing section, select  (override option).
   

   The Pricing Override window is displayed.
   

4. Go to Override Details section, select the required option in the Override Type field.
   Supported options:
   

   1. Payment Amount - The new payment amount requested by the borrower.
      

   2. Rate Factor- The rate factor to be applied on the financed amount to generate the payment amounts.
      

   3. Yield- The maximum percentage to which the asset can be financed.
      

5. Specify the required value for the selected option.
   

6. Select Calculate.
   

7. The Calculated Value section fields are updated.
   

8. Select Save.

   A row is generated with Types=overridden displaying values corresponding to the overridden parameter.
   

   For example: If the Override Type field is selected to be Payment Amount, the display table includes values calculated for Rate Factor and Yield corresponding to the overridden parameter.
   

9. Select the checkbox of the new pricing option created and select SelectPricing.
   

   The following message is displayed, Successfully Selected Pricing Option.
   

10. Optionally to generate pricing, select Generate Pricing .
    

    The Status field of Lease application ID is updated to NEW - PRICING GENERATED.
    

    The Term Selected and the Payment Amount are updated accordingly.