What repayment options are there?
For clients who are on post-approval:
- Fixed repayment period is the only available option.
For clients who are on pre-approval:
- Fixed repayment period
- Dynamic repayment period
How do the repayment period options work?
- Fixed repayment period - when an employee submits an application, they need to pay it off in a specific time frame. For example, if a client chooses fixed repayment period of 2 months, then their employees will need to always repay their applications for the upcoming 2 months after they’ve submitted their application.
In addition to this, clients can give their employees the option to choose the period of time they'd like to repay their applications for. Clients can select up to four repayment periods for their employees.
Dynamic repayment period - when an employee submits an application, they need to pay it off by the date the client selected for all their employees, no matter if employees apply 5 months or 5 days before this date (the date the client set up for all).
Why the dynamic repayment period is not available when clients are on post-approval?
Look at the graph again:
When Mary submits her application on 01 March, she will agree with the Variation of Contract in which the agreed number of installments will be 5 months (from 01 March to 19 August), and the amount of money she will pay will be spread across this 5 months. The calculations are done automatically by the product when it's set to pre-approval process. If the product is on post-approval there is no control over the approving e.g. there is no guarantee for Mary's application that it will be reviewed and approved on 01 March. The approver can do it on 01 April. Then Mary would have agreed to have her deductions spread across 5 months, but because the approver was late to approve the application, there are only 4 months left until the date Mary should have her application fully repaid. That is why the dynamic repayment period is only available for clients on pre-approval.
How to setup the repayment periods?
Log into the Reward Manager > find the tab SmartPay > click Administer > click on the tab Products > Holiday Trading - click on the green button Manage > it's the fourth setup setting called Payment Period