An Asian finance company deployed GM-X to manage its loan portfolio in collaboration with its borrowers, who serve the global telecommunications market, and their contract manufacturers located in the Far East.
The company extends credit to borrowers using an asset-based lending model. The assets used to secure a loan may consist of accounts receivable, inventory or work in progress. A truly collaborative solution was therefore needed not only to process borrowers' loan applications and advance requests, but also to track assets that might be situated in a contract manufacturer's consignment inventory, in transit from the manufacturer to the ultimate customer, or awaiting customer payment. To protect its security interests, the finance company also needed a way to alert them of potential problems such as convenant violations, inventory shrinkage or quality issues that might impair the saleability of its borrowers' products.
Borrowers submit credit facility applications and advance requests to the finance company online, via a borrower's portal, together with electronic copies of required documents. The GM-X Alert subsystem attaches these documents to approval requests which are routed to the appropriate internal or external parties for electronic verification and signature, using the GM-X Workflow subsystem, and then filed electronically as controlled copies by borrower and loan facility.
Using the GM-X Product and Order subsystems, the finance company records all sales orders and bills of material for borrowers' finished products as well as purchase orders for raw materials and components, tracks the status of in-transit stocks using the GM-X Shipment subsystem, and tracks the status of consignment stock as well as work in process located at contract manufacturing sites using the GM-X Inventory subsystem. When finished products are delivered to the ultimate customer, the finance company also tracks receivables using the GM-X Invoice subsystem.
The GM-X Alert subsystem is utilized to detect and report irregularities requiring follow-up action.
GM-X also integrates with the finance company's loan accounting system and general ledger.
GM-X Subsystems Utilized