Indirect Lending is a Sharetec add-on that allows Credit Unions to manage loan referrals from local auto dealers (or other third parties) and pay commissions on these referrals.
When loans are referred from the dealership, they are added to the dealer during the application process. Commissions and charge backs are calculated for all loans during monthly reporting.
When the Credit Union is ready to pay commissions – typically at the end of the month – multiple reports are available to help calculate the amounts due. For example, the Monthly Commission Update and Monthly Dealer Statements reports accurately determine the commission and chargeback amounts due. Credit Unions can also provide detailed dealer statements by running the Request Dealer Statements report.
The bullet points below illustrate this process:
- Sharetec staff verifies the initial setup for the Indirect Lending.
- Dealer Information and Commission rate are added to the Admin Workspace – typically by the Credit Union.
- Once setup is complete, Credit Union staff can begin processing third-party loan applications.
- When loan applications are entered into Sharetec, the Dealer # is added to each application in order to identify which dealer receives credit.
- Credit Union runs Daily Dealer report – manually or automatically – to update the dealer records.
- At month end, the Credit Union runs the Monthly Commission Update report to update all dealer records. This report calculates total commission and chargeback amounts for each dealership.
- To complete the monthly process, the Credit Union generates dealer commission checks and updates appropriate GL’s by running the Request Dealer Statements report.
- Finally, the Credit Union must amortize pre-paids to expense out any commissions paid that month.
For more information on adding the Indirect Lending module in Sharetec, contact Sharetec Sales Robert McEachern at firstname.lastname@example.org.