Include Financed and Rollover Fees and Financed Upfront Tax in Non-Fixed Rate Pools

Broaden your syndication capabilities with the ability to include financed and rollover fees and financed upfront tax in non-fixed rate pools in Oracle Lease and Finance Management. This feature enables lessors to add billable streams from financed fees, rollover fees, and financed upfront tax to non-fixed rate pools, a functionality not fully supported in prior releases where syndication was often limited to rent and residual streams. This expansion allows for a more comprehensive syndication of contract receivables, enhancing funding opportunities.

In earlier versions, the inability to syndicate these specific fee types restricted the scope of investor agreements, potentially limiting capital access. The business benefit of this enhancement is the ability to raise additional funds by syndicating a wider range of receivables, improving liquidity and risk distribution. It addresses the industry need for flexible syndication structures in leasing and finance, supporting use cases such as funding service-related fees or tax components in contracts. Implementation considerations include configuring pool contents to include these fee types and ensuring accurate disbursement calculations based on revenue share.

Steps to enable and configure

You don't need to do anything to enable this feature.

Tips and considerations

• Ensure accurate classification of fee types in contracts to correctly identify streams for syndication.
• Verify investor agreement terms to support both 'Loan Payment' and 'Interest + Principal Payments' for these fees.
• Monitor buyback processes, as buyback of fees is only supported with the buyback of rent streams.