🛍️ Direct Retail Credit

Here is a detailed breakdown of the direct retail credit operation, removing any references to the specific client name (referred to as CLIENT).

Key Components and Actors:

• CLIENT (Merchant/Reseller):
  The company offering retail credit to its customers for purchasing goods or services. The CLIENT acts as the facilitator of the loan process.
• Clientes PF (Retail Customers):
  These are individual customers who are applying for credit to make purchases from the CLIENT.
• Securitizadora:
  The entity responsible for issuing certificates of receivables (CRs), which are tokenized and sold to investors.
• Investidor (Investor):
  Purchases the tokenized CRs, providing the capital necessary for the credit operations.
• CCB (Cédula de Crédito Bancário):
  A financial instrument issued by the CLIENT that represents the debt owed by the retail customer. It is later endorsed to the Securitizadora.
• Smart Contract:
  Manages the entire process, automating the issuance of the CCB, disbursement of funds, tracking, and repayment.
• Bancarizador (Banking Entity):
  Responsible for processing payments, disbursements, and managing dedicated accounts for the operation.

Process Workflow:

• Customer Credit Application:
  Retail customers apply for credit to purchase goods or services from the CLIENT. The amount approved is based on a credit analysis performed by the CLIENT and their system【24†source】【25†source】.
• Issuance of CCB:
  Once the credit is approved, a CCB is generated, representing the retail customer's debt obligation. This CCB is signed by the retail customer and endorsed by the CLIENT to the Securitizadora【25†source】.
• Creation of the Operation:
  After the CCB is signed and validated, the operation is processed by BRX. The details of the CCB are registered both in a database and on the blockchain via a smart contract【25†source】.
• Tokenization and Securitization:
  The endorsed CCB is transformed into a tokenized CR. This tokenization allows the operation to be divided into different investment classes, such as senior (fixed-rate) and subordinated (variable-rate) tranches. The tokenization process facilitates distribution to investors on the platform【24†source】.
• Investment and Disbursement:
  Investors purchase the tokenized CRs, providing the liquidity needed for the retail credit operation. Once the investment is secured, the disbursement is made to the customer’s account through the banking entity【25†source】.
• Repayment and Collection:
  The retail customer repays the loan via regular installments. Payments are collected through a dedicated account, managed by the bancarizador. The entire payment flow is automated by the smart contract, ensuring that the amounts are credited correctly to the investor and that the necessary fees and taxes (such as IOF and TEC) are paid【24†source】【25†source】.
• Collateralization and Reporting:
  The CR is collateralized, providing security for the investors. Additionally, a detailed reconciliation report is made available to the investors, ensuring transparency throughout the operation【24†source】【25†source】.
• Final Liquidation:
  Upon completion of the repayment, the CCB is liquidated, and the operation is closed. The smart contract automates this process, ensuring that all parties receive their respective returns【25†source】.

Risk Mitigation:

• Credit Analysis:
  The CLIENT performs an initial credit check to ensure that the customer has the ability to repay the loan. This reduces the likelihood of default.
• Smart Contract Automation:
  The smart contract enforces the terms of the CCB, ensuring that payments, disbursements, and collections are carried out in a timely and transparent manner.
• Collateralization:
  The securitization and collateralization of the CRs provide security for investors, reducing their exposure to risk.
• Dedicated Accounts:
  All funds flow through segregated accounts, ensuring that the operation’s finances are managed separately from other business activities. This improves transparency and protects the investors' capital.

Summary:

This direct retail credit operation is a structured process that uses securitization and tokenization to provide credit to retail customers while offering investors a secure investment opportunity. The CLIENT facilitates the retail credit, with the Securitizadora issuing tokenized CRs backed by the CCBs of the retail customers. Smart contracts manage the flow of funds, automate key processes, and ensure transparency and efficiency in the operation.