SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Assess Credit for a Floorplan facility in an Asset Based Financing environment 
SAQA US ID UNIT STANDARD TITLE
12764  Assess Credit for a Floorplan facility in an Asset Based Financing environment 
ORIGINATOR
SGB Banking and Micro Finance 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
BANKSETA - Banking Sector Education and Training Authority 
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 5  Level TBA: Pre-2009 was L5 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
Persons credited with this Unit Standard are aware of the risks and responsibilities of a vehicle dealer and are able to analyse the requirements for establishing a floorplan facility and set one up that is appropriate to dealer requirements and within the risk profile approved by the bank. 

LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
The learner must be able to recognise the different legal entities describe their contractual ability. The learner should aim to attain competence against Unit Standard FM006, Evaluate companies based on their financial statements, against Unit Standard ABF009, Adhere to the legal and statutory requirements pertaining to the Asset Based Financing environment, and against Unit Standard ABF010, Perform basic mathematical calculations in a banking environment. The learner should also be competent in communication and negotiation skills as well as customer service.Learners must be able to differentiate between acceptable and unacceptable credit risks in terms of company policy. 

UNIT STANDARD RANGE 
Assess and establish the credit risk for a floorplan facility. 

Specific Outcomes and Assessment Criteria: 

SPECIFIC OUTCOME 1 
Identify the areas of risk associated with floorplan facility credit. 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1.The areas of risk associated with floorplan facilities are identified. 

ASSESSMENT CRITERION 2 
2.The impact of the different areas of risk are calculated using specific examples. 

ASSESSMENT CRITERION 3 
3.An analysis of financial statements is used to identify credit risk in a case study. 

ASSESSMENT CRITERION 4 
4.The use of risk minimization techniques is described in the context of specific examples. 

ASSESSMENT CRITERION 5 
5.The risk policies of the bank are located and explained in the context of specific examples. 

SPECIFIC OUTCOME 2 
Assess the credit risk for a particular client. 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1.Customer information relevant to their credit risk profile is identified from company records. 

ASSESSMENT CRITERION 2 
2.The contractual capacity of the client is established according to statutory definitions. 

ASSESSMENT CRITERION 3 
3.Credit risk on the customer is assessed based on an analysis of financial, business and bank information and data. 
ASSESSMENT CRITERION RANGE 
Mandates and authorities, financial statements, facility or premises inspection, average stockholding and stock valuation, trading history and credit assessment and in terms of bank and statutory requirements.
 

ASSESSMENT CRITERION 4 
4.A risk assessment on the client is presented in the format required by the bank. 

ASSESSMENT CRITERION 5 
5.A recommendation is made based on the analysis. 

SPECIFIC OUTCOME 3 
Formulate a client proposal based on the identified risk profile. 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1.All information relevant to the proposal is collected. 

ASSESSMENT CRITERION 2 
2.Terms and conditions outlined in the proposal are consistent with their risk profile. 

ASSESSMENT CRITERION 3 
3.Security documentation relevant to the client's risk profile is verified for authenticity. 

ASSESSMENT CRITERION 4 
4.The proposal is formulated according to company and statutory requirements. 

SPECIFIC OUTCOME 4 
Finalise the floorplan facility for a specific client. 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1.Credit approval is obtained based on client analysis and according to bank policy and procedures. 
ASSESSMENT CRITERION RANGE 
Existing facility and new facility.
 

ASSESSMENT CRITERION 2 
2.Documentation is finalised and signed by relevant parties. 
ASSESSMENT CRITERION RANGE 
Facility notification, securities documentation, terms and conditions.
 

ASSESSMENT CRITERION 3 
3.The facility is entered onto the system in accordance with bank requirements. 

ASSESSMENT CRITERION 4 
4.Relevant parties are informed as required by bank policy. 

ASSESSMENT CRITERION 5 
5.Documentation is stored according to bank policy and procedures. 


UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
Accreditation for this Unit Standards shall be from the relevant education and Training Quality Assurer through formative and summative assessment by a registered Assessor. Assessment should be contextual and be conducted in the workplace as far as possible.

The relevant NSB and SGB should be notified of any feedback related to this qualification.
  • Assessors must be registered as an Assessor with the relevant ETQA.
  • Moderators must be registered as assessors with the relevant ETQA.
  • Training providers must be accredited by the relevant ETQA.
  • Moderation should include both internal and external moderation where applicable.
  • The relevant ETQA will co-ordinate all moderation activities in accordance with their policies and procedures. 

  • UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    Learners can understand the basics of financial statements and can carry out calculations such as interest rates, VAT and arrears as they apply to the application. They are sufficiently financially aware to identify risk issues such as RD cheques when examining financial statements. They can explain the fundamentals of contractual capacity and other legal and statutory aspects relating to the asset based financing environment. They are also aware of relevant company policies and procedures and can apply them in the context of their work.
  • Learners have sufficient working knowledge of the company products to be able to advise clients of the best alternative, when required.
  • Learners must be aware of company policies relating to credit assessment and risk analysis.
  • Learners must know how to communicate with and build relationships with customers.
  • Learners must be fluent in the use of the company technical system, including the Internet applications relevant to it. 


  • Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO COLLECTING 
  • The learner is able to collect, analyse, organise and critically evaluate information to be used for making credit decisions. 

  • UNIT STANDARD CCFO COMMUNICATING 
  • The learner is able to communicate effectively using visual, mathematical and / or language skills in the modes of oral and / or written persuasion when interacting with clients, dealers or third parties. 

  • UNIT STANDARD CCFO SCIENCE 
  • The learner is able to use technology effectively and critically when managing the system related processes in floorplan credit assessment. 

  • UNIT STANDARD CCFO CONTRIBUTING 
  • The learner is able to help develop entrepreneurial opportunities when interacting with dealers. 

  • REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
  • LEGAL REQUIREMENTS
  • Legal aspects of vehicle registration, transfer and ownership.
  • Statutory requirements relating to hire purchase and sale agreements.
  • Unit standard ABF009. 

  • QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  61589   National Certificate: Banking  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2021-06-30  As per Learning Programmes recorded against this Qual 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    1. Chartall Business College 
    2. Nedbank Ltd 
    3. The Institute of Literacy Advancement 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.