2014/09/30 - Fairways Guarantees - Rule for Creating Guarantees

From now on, the “Applicant” (“Pour le compte de” or “Demandeur” in French) is mandatory for issued guarantees and replaces the “Principal” (“Donneur d’ordre” in French) in the request form.

 

 

Why such a move?

To provide a clear separation between the request of a guarantee and its handling. Especially useful when our customers use Koesio across all entities and requests go straight to the holding.

Which guarantees are impacted?

All issued guarantees. Please note that received guarantees still work the way they used to since Koesio does not support the “Applicant” notion for received guarantees.

What does the new workflow consist of?

The new workflow for issued guarantees is:

    1. The Applicant states its needs and specifies which is the applicant entity (usually his entity). The Principal is no longer requested at this stage.
    2. The Backoffice (and/or the Validator) handles the applicant’s request: they validate the request, fill the missing information, negotiate with the bank and so on.
    3. The Validator marks the guarantee as “Effective” (“En place” in French) and, to do so, is requested to specify which entity is the Principal (“Donneur d’ordre” in French). Usually the Principal is either the Holding or the Applicant but it could be any other entity of the group depending on your internal organization.

 

 

Side benefits of this evolution?

Reports will be easier to consolidate since each effective, releasing and closed issued guarantee has a Principal and an Applicant. The information is clearer, more precise and easier to handle.

More to come on this subject?

We have much more to come on this subject. We aim to introduce a new applicant module that will enhance those aspects. We want to simplify requests and tracking processes even more for those users that only use Koesio twice a year to request guarantees. On top of that, this new module will offer more flexibility in request configurations to better map your process. No launching date for this module has been scheduled so far but early 2015 seems a fair bet!

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