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OKINUS CREDIT FINANCING INSTRUCTIONS

All customers choosing to finance should be sent to Wells Fargo for approval unless they admit to having a credit problem or are asking for your no credit check option. In the event that they are declined, they can still be offered financing through Okinus Credit Solutions. Okinus offers a “No Credit Needed” approval option. The main requirement is that the customer must have an actively used checking account in good standing and all customers must agree to an ACH debit of their payment from this checking account.

Please see Okinus’ web portal for processing the application.

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➢ Getting an approval

1. After receiving a decline response from Wells Fargo and Lendmark, Regional, or Harrison, you should explain to the customer that we have a “no credit needed” option. This is a good way to establish credit or rebuild their credit. They also offer a 90 day SAC option with a $49 processing fee.

2. Explain how Okinus works and that they will need to be able to pay the first payment at the time of sale, unless approved for $0 at time of sale.

The Instant Approval System allows you to quickly know if you can get the customer approved with no bank statements. Using the dealer portal, enter the first page of info (Less than 10 pieces of information), click the “next” button at the bottom and you can give your customer the good news.

1. Fill out the first page of the online application.

a) Notice that you must fill out the customer’s name the same as it appears on their voided check. The voided check must be attached to the checking account that we draft their payments from each month. The customer must provide us with a copy of the voided check if they are approved.

b) Make sure you add their email address and their gross pay because this field determines how much they get approved for.

c) Ashley Furniture will not be processing down payments through the Okinus system.

2. Once the first page is complete hit the next button at the bottom of the page. In a few seconds it will forward to the next page and on the left side of the page you will see the results of the instant approval.

3. If the customer is denied, they can still be reconsidered by sending in a copy of a paystub and a recent bank statement. Just call Okinus to discuss after sending in these documents. If they are approved you will see that message and the amount of the approval.

• They will approve up to $5000.00

• If you get an instant approval for $1500 or less, you do not need a bank statement or a paystub unless they request one when the approval amount pops up.  Be sure to read carefully.

• If you get an instant approval for more than $1500, you will need a recent paystub but will not need the bank statement unless they request one when the approval amount pops up.  Be sure to read carefully.

4. At this point you can complete the application or save and exit the customer app so that the customer can pick out furniture. Next, get the pay stub (if approved for more than $1500.00), ID, and a Voided Check and email to Okinus to the Turner Group. The customer’s app can be accessed later and be completed. “Save and Exit” does not submit the app to Okinus. Once you have completed the app you will see a “Save and submit to Okinus” button on the documents page.

• You have an option to complete the application online or finish the other info on a paper app and scan it in or upload it to the customer app.

5. After the customer is approved, an invoice should be prepared for the customer. After the invoice and other required documents have been sent to the Turner Group at Okinus they will prepare a contract that you may print out of the web portal for the customer to sign (they will typically fax it, as well).

If the customer is approved, proceed to “Processing the Sale”.

➢ Processing the sale

1. Continue processing the sale in the computer as outlined in policy O-2.

2. When it is determined that the financing will be through Okinus you will need to change the “BILL TO” name to the customer’s last name, Customer’s first name OKINUS (VERY IMPORTANT). Example: Smith, Bob Okinus.

3. The customer’s ID # will still be the customer’s phone number.

4. The “BILL TO” address remains the customer’s address.

5. Use “NTR” as the tax code because Okinus Credit is a tax-exempt company and they are the party purchasing the furniture.

6. The payment terms code will be “OKI” and should state that the customer is financing with Okinus Credit in the sales comments.

a. If the approval can not be obtained at the time the customer is present, the ticket should be scheduled for 12/31 of the following year until which time they have been approved. After receiving an approval or declination, you will notify the customer of the decision. If approved, you will need to change their delivery date based on the arrival of the merchandise and enter the PO for the merchandise. If the customer is declined, you should delete the sale from the computer.

➢ Disclosure of the Contract

1. You will find a video on the Okinus web portal on how to explain the contract to a customer.

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2. Review the summary of the contract and down payment requirements with the customer (see summary and item #2 on page 1, shown below). Have the customer review the rest of the contract and answer any questions they may have. If the customer agrees with what is presented, then have all parties sign, initial, and date in the appropriate spaces on the contract. The customer service representative should sign the space “witness”. After the customer(s) have signed please make 3 copies of the contract and give all parties, to include the co-buyer, a signed copy of the contract and the payment schedule.

Note: The customer(s) signature should be verified with the driver’s license. All the customer(s)

signatures on the contract should be in cursive handwriting. The only time print is allowed is if

the driver’s license signature was in print.

Page 1 of the Contract

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Page2 of the Contract

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3. After the contract is signed, you should then fax, email, or upload to the portal the signed copy of the contract and signed sales invoice to Okinus for their review. Okinus will then review the contract and the proof of income before they authorize delivery of the furniture. You must have the “OK to deliver” letter (see below) before ordering the furniture, scheduling delivery, and letting the customer leave with any product.

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4. Collect the required down payment as usual, but do not process any down payment through the Okinus Portal. Ashley Furniture will not be processing down payments through the Okinus system.

➢ Cancelling / Reselecting Merchandise

1. Complete Cancellations

a. Within 24 hours:

▪ If the customer chooses to do a complete cancellation within 24 hours then all the contract information should be marked VOID, stapled together and retained in their customer file.

▪ The sale will be deleted and the PO must be cancelled with Ashley Mfg.

▪ If the customer gave a down payment, you should fill out a “refund checklist” as outlined in policy O-11 and refund them in the appropriate manner.

b. After 24 hours and before funded:

▪ If the customer chooses to do a complete cancellation after 24 hours and before their contract is funded, all the contract information should be marked VOID and stapled together. This will be retained in their customer file.

▪ The sale will be deleted and the PO must be cancelled with Ashley Mfg.

▪ The customer’s down payment will be kept towards the 25% restocking fee (see note below).

▪ If the down payment exceeds the 25% restocking fee and a refund is due to the customer, you will also fill out a “refund checklist” as outlined in policy O-11.

c. After funded:

▪ Very Important-In the instance of a complete cancellation Okinus must be refunded the entire amount funded to us on the cancelled sale so the customer’s account with them is paid in full. Please ensure this amount as well as the restocking fee has been verified and collected prior to any overage being returned to the customer.

▪ You should fill out the “Okinus Refund Submittal Form” under the section marked “complete cancellation”. Enter the total the customer borrowed. Subtract the down payment that Ashley Furniture collected at the time of sale.

▪ Send the form to Okinus so they can deduct the refund amount from our bank account. They will deduct by ACH and then apply the refund to the customer’s account.

▪ You will receive a funding report showing the refund and then it can be applied in the computer to the customer’s account.

▪ The customer’s down payment will be kept towards the 25% restocking fee (see note below). You will also fill out a “refund checklist” as outlined in policy O-11.

Note: Only charge up to the amount of the down payment as a restocking fee; not the

full 25%. If the customer’s down payment is more than the 25% restocking fee, process the 25% fee and you may return the overage to the customer by the original method of payment (except for cash and check).

2. Partial Cancellations:

a. Before Funded:

▪ If the customer chooses to do a partial cancellation within 24 hours then the items will be deleted and the PO for these items must be cancelled with Ashley Mfg.

▪ If it has been more than 24 hours and the item(s) can not be cancelled with Ashley Mfg. in time, a restocking fee of 25% will be added to the adjusted invoice before sending over to Okinus.

▪ Inform the signing parties they must be present before any changes can be made to the paperwork. However, the PO for these pieces should be cancelled immediately and the pkup/delivery date should be changed to 12/31of the following year until the customer comes in.

▪ Notes not to order should be added to the comments in the sale stating “waiting on customer to sign new contract before ordering and scheduling”.

▪ With the customer(s) present, proceed to send over the new adjusted invoice to Okinus to obtain a new contract and proceed as outlined under “Disclosure of Contract” on page 3.

▪ Be aware that if the merchandise total has increased the customer’s down payment may also increase from the original amount and the additional payment may need to be collected. The customer’s down payment may not be returned to them unless they make a complete cancellation. As long as there is a lease agreement the down payment must stand.

▪ After the new contract is signed, all the original contract information should be marked VOID, stapled together and retained in the customer’s file.

Note: The additional amount may not be approved by Okinus and may need to

be paid for by the customer. The restocking fee is at the store manager’s discretion.

They may decide to waive the fee if the customer is not approved to finance it. The

customer’s down payment may not be returned to them unless they make a complete

cancellation. As long as there is a lease agreement the down payment must stand.

b. After funded:

▪ You should fill out the “Okinus Refund Submittal Form” under the section marked “partial cancellation (after funded)”.

▪ List the items and amounts for merchandise being deleted. Enter the total amount for the items deleted and subtract the restocking fee.

▪ Next, send the form to Okinus so they can deduct the refund amount from our bank account. They will deduct by ACH and then apply the refund to the customer’s account.

▪ You will receive a funding report showing the refund and then it can be applied to the computer.

▪ You will also fill out a “refund checklist” as outlined in policy O-11.

Note: The customer’s down payment may not be returned to them unless they make a

complete cancellation. As long as there is a lease agreement the down payment must

stand.

➢ Submitting Funding

1. When it is determined that the merchandise has been received by the customer you will need to go into their lender portal and check the box that the items were delivered. The funding sheet should be received within 24 hours from the time being requested. If it is not received, you should check the portal to see if it can be printed and if not you should follow up with Okinus immediately.

2. The following items should be retained in the customers file at the store:

a) Copy of drivers license for each applicant

b) Copy of the signed application

c) Copy of the signed sales invoice and customer sales agreement

d) Any additional documentation requested by Okinus

e) A signed copy of the contract. (download and print)

➢ Processing the Funding

1. You will post the funding after receiving the “Notice of Receipt of Goods Received by Okinus” faxed funding confirmation sheet showing deposit of the funds to the bank account. This will work just as it does for Wells Fargo funding (see policy O-6(a)).

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2. When posting in the Enter/ Cash screen, the amount financed on the contract will be the “tendered: amount on the left and the “net to dealer” on the funding sheet is the amount entered beside “finance” and the discount is entered in the “finance discount” box.

NOTE: Please review the receivables for each customer’s account before processing the payment

to ensure the accuracy of the amount funded. If there is any discrepancy, please discuss with the Okinus

representative.

➢ Contract and Application Facts

1. Okinus does report to the credit bureau.

2. The customer may pay extra payments if they choose. If they pay off in the 90 days same as cash period they will only have to pay the actual price of the furniture on the Ashley Invoice plus tax and the original processing fee ($49). They may use the “payment schedule” to see their balance after each payment.

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➢ Miscellaneous Notes

1. A co-buyer may only be a husband or wife, not a friend or other relative.

2. The applicant may use their spouse’s income. The spouse must submit a separate application and will need to sign the contract. They do not accept child support or SSI for children.

3. The customer signature should be verified with the driver’s license. All customer signatures on the contract should be in cursive handwriting. The only time print is allowed is if the driver’s license signature was in print.

4. Always use a black or blue pen when signing the contract.

5. PROOF OF INCOME GUIDELINES: For the most part you will receive a computer generated paystub dated within the last 30 days. If the customer is self employed or receives Social Security they can verify income with 1099’s, Social Security Benefits letter dated for this year, or a bank statement. If you have an issue with this requirement, please notify Okinus with the specific issue and they will advise you of what you need.

6. All contracts must be signed by the customer and received by Okinus within 30 days of the contract being prepared by Okinus.

7. “3rd party” or “straw” purchases are not allowed: There can be no purchasing of furniture for another person when applying for credit with a sub-prime lender (Lendmark, Regional, Okinus, and Harrison). THERE ARE NO EXCEPTIONS, EVEN BY YOUR STORE MANAGER! The person applying for credit must be the one taking possession of the furniture and the sales ticket and delivery address must match to the address on the application. .

Important Note: If someone calls to change the “deliver to” address, you must get approval from the finance company and if they require proof of address, this must be collected before changing the address in our system.

8. If the address on the driver’s license does not match the application and address to which the merchandise is being delivered to, you will need to obtain proof of residence that they live there. This could include a power bill, bank statement, phone bill, cable bill, or lease agreement in the customer’s name. The application, invoice , and contract should all match with the same address.

9. You should not be processing a sale for more than one sub-prime contract per customer without prior approval from both finance companies. EX. You should not be financing 1500.00 with Lendmark and the other 2000.00 with Regional. This is not an accepted practice in sub-prime. If you tell each of the lenders about the fact that the customer wants to do this and both companies are ok with this, then you can do it. I would really suggest getting that in writing, if possible, from the lending sources involved. Remember, each source is basing their approval from what is on the customer’s credit bureau, their debt to income and payment to income ratios. You can always process a WF or GE approval and one sub-prime approval at the same time.

10. For all sub-prime finance companies, you should make sure you schedule all of the customer’s furniture for the same delivery date to keep from possibly having funding issues. They will only cash the contract when the customer has possession of all the merchandise and if they cancel a portion due to not being delivered or they just won’t come and pick up the last item, we cannot get paid until they are re-contracted. If you have to split the ticket it must be signed off on by the store manager for approval and you must enter this in the notes of the sale. This should be done only as an extreme exception, not a daily practice.

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