While with inflation, your consumers’ borrowing needs are growing, your financial institution credit risk tolerance may decline and credit underwriting criteria tighten up. In this uncertain environment, the syndication network provides a unique set of digital tools that allow to reduce credit concentration risk, a key risk factor for smaller community financial institutions.
By joining Quilo, your financial institution gains real-time access to a guaranteed liquidity pool to participate out the interest in the loans, that are larger than your acceptable credit limit, to other network participants. At the same time and on the terms acceptable to you, your financial institution gains access to real-time participation in the loans underwritten by other originators.
is a financial institution that buys some interest in an individual loan
is a set of lending features that constitutes a lending product - e.g. Unsecured Personal Installment Loan, New Car Loan, Used Car Loan, Line of Credit, RV Loan, Boat Loan, etc
is a set of criteria defined by Participant for participation in a specific program. Each Program may have its own set of criteria
A Participant may participate in one or more Programs
A Participant must set and maintain separate Funding DDA account for every Program they participate in at their own institution
a Participant will set and maintain daily participation limit for each Program they participate in
is an account that covers Daily Program Participation Limit. It's a virtual account at a third-party Custodian Bank that Quilo is authorized to Direct Debit to cover Participation Settlement in case the Program Funding DDA direct debit has failed
a dedicated DDA account Participant sets at its own institution to settle participation
is an external, real-time loan originator inquiry issued to Participation Network to request up to 100% participation in a specific loan. This request must contain sufficient information about applicant, loan terms and participation requirement. Upon sufficient Participation allocation, a Master Participant will receive time-limited confirmation that guarantees participation
is a set of rules that are designed to offer fair opportunity to participate in loan flow to every network participant
is a set of criteria and metrics that define the Participation Queue including actual Portfolio Quality, Maximum Term, Maximum Tier Limit, Participation Factor (percentage of daily limit that has already been participated), cut-off credit score and finally Commitment Factor(a portfion of a daily limit a Participant committed into the a pool of commitments among selected participants) and dozen of others
While we are developing programs to support participation for various lending products, Quilo syndication network currently supports 2 products.
With Quilo, whether you originate or participate, your ability to stay in full control of your underwriting or participation criteria is the key.
The network provides functionality that allows your authorized personnel to set and update the following set of credit criteria that takes immediate affect:
A Syndication involving borrower with a credit score below your cut-off rate will be rejected.
the desirable outstanding credit-score-weighted principal
the maximum amount of funds you are willing to participate in a single loan that involves a borrower in a specific credit tier
or ROA you are looking to achieve at portfolio level after charge-offs
up to 72 months
defines maximum fractional interest up to 100%
APRs can be overridden