Collateral

Overview

An Asset is collateral property in the lending system. Assets are created only in association with participants in the Collateral Provider role and contain information about the collateral type, characteristics, documents, and status.

Navigation: Application page → Collateral Provider participant → Assets

When Collateral Is Required

Collateral may be required based on:

• Product configuration (secured products)

• Loan amount thresholds

• Regulatory requirements

Working with Collateral Providers

Understanding the Collateral Provider Role

A Collateral Provider is the entity that owns and provides the collateral:

• The Borrower themselves

• A third party (separate from Borrower)

• A legal entity (for commercial loans)

Adding a Third-Party Collateral Provider

Purpose: When the collateral owner differs from the Borrower

Steps:

1. On the Application page, add a new participant

2. Select Collateral Provider role

3. Enter identification data (system searches for existing Client)

4. Complete required information

5. System creates participant with Collateral Provider role

Required documentation:

• Proof of collateral ownership

• Identity verification

• Authorization documents (permission to pledge)

• Insurance documentation (if applicable)

Result: Collateral provider participant is created; assets can be linked to this participant.

Asset Interface

Displayed data (common fields):

• Asset ID

• Asset type (Vehicle, Real Estate, Equipment, etc.)

• Main characteristics (VIN, address, cadastral number, etc.)

• Estimated value

• Asset status

Working with Assets

Creating an Asset

Purpose: Add collateral property to an application

Prerequisites:

• Permissions to work with assets

• Participant with Collateral Provider role exists

• Collateral property information available

Steps:

1. Navigate to the Application page

2. Find the participant with Collateral Provider role

3. Execute Add Collateral action

4. Select asset type (Vehicle, Real Estate, Equipment, etc.)

5. System displays type-specific form

6. Fill in required fields

7. Save the form

8. Upload required documents (e.g., certificate of ownership)

9. System creates asset in initial status and initiates validation

Result: New Asset created, linked to collateral provider and application. System may automatically trigger valuation processes.

Viewing Asset Details

Purpose: Monitor collateral property status and assessment results

Steps:

1. Navigate to the Application page

2. Find the required asset

Asset block displays:

• Asset name and status

• Asset data

• Documents

• Valuation status

• Status change history

Changing Asset State

Purpose: Progress asset through verification and valuation

Prerequisites:

• Permissions to perform actions with assets

• Asset status allows the action

• Required documents or information available

Steps:

1. Navigate to the Application page

2. Find the required asset

3. System displays available actions (e.g., "Send for Valuation", "Approve", "Reject")

4. Execute the action

5. System updates asset state

Result: Asset moves to new status; related processes initiate.

Conditional Credit Offer Availability

Offers Requiring Collateral

Some credit offers display as "conditionally available" when:

• Specific collateral type required but not added

• Collateral value insufficient

• Required documentation incomplete

Unlocking Conditional Offers

Steps:

1. Identify missing requirement (hover over or click offer for details)

2. Add required collateral

3. Complete collateral documentation

4. Wait for valuation/validation to complete

5. System automatically recalculates offer availability

6. Credit offer becomes available for selection

Dynamic Recalculation:

When collateral is added or updated, system automatically:

• Recalculates available credit offers

• Updates offer terms based on collateral quality

• Adjusts pricing based on security provided

• Changes list of offers available for selection

Troubleshooting

Cannot Add Asset

Possible causes:

• Insufficient permissions

• Application status doesn't allow collateral addition

• No Collateral Provider participant exists

• Asset limit reached

Resolution:

• Check user permissions

• Verify application status

• Create Collateral Provider participant first

• Check asset limits in configuration

Asset Cannot Progress to Next Status

Possible causes:

• Required documents not uploaded/signed

• Data validation not completed

• Valuation not completed

• Required asset data missing

Resolution:

• Check all required documents present

• Wait for automated checks to complete

• Ensure valuation is finished

• Verify all required data filled in

• Review validation error messages

Asset Valuation Issues

Possible causes:

• External valuation service unavailable

• Asset not found in valuation database

• Manual valuation required

Resolution:

• Check asset for error messages

• Contact administrator to verify integrations

Conditional Offer Remains Unavailable

Possible causes:

• Collateral added but processing not completed

• Asset value insufficient to secure the loan

Resolution:

• Check status of all collateral workflows

• Wait for automated checks to complete

• Verify collateral value meets offer requirements

Related Configuration

• Collateral Management (Setup)

• Product Architecture (Setup)

• Documentation Requirements (Setup)

Related Topics

• Applications - Application management

• Participants - Managing participants

• Product Selection - Offers and product selection

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For additional support, consult your supervisor or system administrator.