ANCILLIARY BUSINESS – Commonly called business partners. Ancillary Business itself has an understanding as an additional business whose job is to support or support the main business. These additional businesses are not directly involved in the main business but only have specific tasks to be performed by each of these additional businesses. If the term is easy, the company’s accomplice is.
Although not directly involved in running the main business, usually this business ancillary will affect the main business depending on its performance. Therefore, Ancillary business is also important and needs good management because in general people do not distinguish between the main business and Ancillary business because anyone has the perception that the supporting business plays a role in forming the main business.
Usually, the main business and its business partners tend to have short commitments with short-term agreements and if the main business does not get what they want, the main business has the right to cut ties with it and look for other business partners who are more competent and helpful. Regulations like this will make support businesses work optimally for their clients’ satisfaction.
What is Ancillary Credit Business?
Ancillary Credit Business is a business partner that serves matters regarding credit run by the main company/business. If the main credit company operates in offering credit, then the credit business partner (Ancillary Credit Business) as an accomplice is tasked with serving the main business needs. For example, broker agents as credit intermediaries, debt collectors as credit collectors and so on.
The purpose of the Ancillary Credit Business
So that the main business can focus more on its tasks, for example on the credit business so that it can focus on the main goal, namely getting maximum clients
Save more money because each business partner can complete tasks more effectively than the main business which has to do multiple tasks
Saves more time because the main business and each business partner can focus on the heart of their respective businesses
The scope of the business can be wider because it has more partners
Who is included in the Ancillary Credit Business?
Credit brokers or credit brokers (Credit Brokerage) – A credit business partner or party in charge of bringing together prospective debtors with creditors (creditors) where the credit broker will benefit in the form of bonuses and commissions from the main credit business.
Debt Collecting Agents – often called Debt Collectors, are business partners whose job is to collect debts and collect credit from debtors. Debt Collectors usually have a duty to settle outstanding credit payments.
Credit Administration (Debt Administration) – tasked with managing credit administration such as handling correspondence, inventorying credit customer data, input and recap data to documentation.
Credit adjustment agent (Debt Adjusting) – is a credit business partner in charge of making adjustments to existing loans such as adjusting the credit tenor or credit nominal that must be paid according to the eligibility of the debtor.
Credit Counseling (Debt Counseling) – tasked with providing advice and advice to debtors on how to pay off debts and help manage debt problems
Credit reference agent – often called a credit Agent, is one of the credit business partners whose job is to provide references to the main business about who is eligible for credit or loans.
Ancillary Credit Business is a business that is directly involved in a credit product but the parties involved are not the owners of the credit product, so the parties who become Ancillary Credit Business are partners of the credit product owners, with their help a credit product can be marketed more easily. good, and the company’s burden regarding the credit product can be transferred to another party who becomes the Ancillary Credit Business, nowadays institutions that have credit products usually have partners who become their Ancillary Credit Business.
Ancillary Credit Business is a complementary business, complementary in this case means being a supporter of a credit product, even though it is a complementary business, the ancillary credit business has a major influence on the success of a credit product on the market and the management of credit product management, for example debt collectors help banks reduce Non-performing loans. The company’s Performance Loan (NPL), if it is not assisted by debt collectors who are usually outsourced to other companies, the NPL number for credit products can increase, if using internal debt collectors the company’s image can be disrupted, and operational costs may be higher.
Ancillary Credit Business Function
For product owners, ancillary credit business companies can be used as partners in marketing and managing their credit products, cooperation with ancillary credit business companies can reduce business risk because ancillary credit business companies are in several ways spearheading, streamlining costs, and expanding marketing reach. credit product
For consumers of ancillary credit business, this makes it easier to access credit products, prospective customers and consumers are easier to relate to ancillary credit business companies and they are assisted by ancillary credit business companies
For Ancillary Credit Business companies, this is a business opportunity and a source of company income, the company gets various economic benefits from a credit side business from a credit product.
Ancillary Credit Business Example
There are many business fields that can become Ancillary Credit Business, these include:
Credit Brokers, credit brokers are parties who act as intermediaries between consumers and the owners of credit products, the broker will get a fee for the consumers he gets
Debt Collector, is the party that collects consumer debts that are in arrears, with the help of debt collectors, the NPL number can be reduced
Credit reference agents are parties who provide credit references to parties in need, consumers get information about a credit and credit companies can ask credit reference agents to refer their credit products
Credit counseling, is a party that provides advice to prospective consumers regarding credit products, manage credit finance, and credit payment advice to consumers, credit counseling also provides benefits to product owners in socializing their products and smooth credit installment payments by consumers
Debt Administrator, is an intermediary between creditors and debtors in resolving payment problems that arise, debt administrators provide the solutions needed to overcome them
Ancillary Credit Business is defined as an additional business unit that offers services to the main credit institution but does not offer credit to the public but only becomes a partner in organizing main/core credit activities where this additional business is formed in collaboration with the main credit institution by providing various technical and administrative assistance and services. collection which is usually carried out in the form of cooperation through written or unwritten agreements in the short term either as partners or as accomplices of credit institutions so that the main credit institutions can be assisted in their performance in terms of payment burdens, billing burdens, handling bad credit problems or credit arrears and other problems. other problems faced by customers which in the end are able to boost the performance and credit rating of the company or major credit institution.
In addition, Ancillary Credit Business is defined as a business that is involved with credit but does not offer credit itself. It was established in an effort to support and back up smoothness in terms of promoting and opening credit access, assisting in the administration and administrative requirements of prospective customers who wish to borrow, providing business units with special collection services. debtors who have problems and are in arrears in installments, help distribute credit loans to customers, both individuals and institutions and also help identify the feasibility of a creditworthiness analysis (5C) prospective debtors and help facilitate creditors and debtors in submitting credit proposals as well as resolving problems related to arrears and bad loans .
Additional business units both in the form of individuals and in the form of additional business units usually work when there are instructions or there is a need from the creditor institution in accordance with its main function and level of specification of the problems encountered and receive facilities in the form of salary, bonuses, commissions and so on in accordance with agreement made between the two parties.