Fees and Charges by the Financier are based on the risk assumed by them in each transaction.
For example, a financial guarantee is considered to assume more risk than a performance guarantee. Hence, the fee for financial guarantee will be higher than the fee charged for performance one. Apart from this, the financier may also charge an application processing fee, documentation fee, and handling fee.
In RIVO we facilitate the Financier user to update their charges at the time of authorizing the guarantee. To do so they select the Add new option under Charges and Commissions in the Review and sign page.
This brings up a list of charges, and the Financier simply adds a new row for each charge levied.
Here they need to specify the following details:
- Fee Code
- Fee Name
- Fee Description
- Amount and currency
- Settlement Date
- Paying Party
- Account number
Predefined fee code list:
|Adjustment of term charges
|Automatic booking of charges
Note: In the event that the fee code is not available from the dropdown, you can enter it manually.
Enable the bank to upload a list of charges and commissions per deal in bulk once released. Apply this capability to all products for which the bank can add charges, such as Incoming/Outgoing Guarantee, Export LC, and Standby LC', you could say 'Allowing the bank to bulk upload charges and commissions per deal, once released, should be made available for all products that allow for the addition of charges, such as Incoming/Outgoing Guarantees, Export LCs, and Standby LCs
To do so:
- Connect to the bank account and go to the release page of a Guarantee/Export LC.
- Select Bulk Uploads from Add new drop down.
- Download the template, fill in all the data, and re-upload it to the system.
- Verify that all fields are inputted correctly, and the list of charges will be imported into the system.
- Verify that if there is an error, missing data, or incorrect data, messages will be raised and displayed in the processing logs.
- Go back to the "Charges & Commissions" list and verify that the charges are displayed correctly in the list.