🤑 Payroll / Salary Loans

Here is a comprehensive breakdown of the operation involving salary loans (empréstimo consignado) in BRX Finance's structure.

Key Components and Actors

• Tomador (Borrower):
  The employee who is eligible to take out a salary loan. The employer sends a list of eligible employees to the system for validation.
• Empresa (Employer):
  Provides a list of employees eligible for salary loans and their available borrowing limits. The employer is responsible for facilitating the payroll deductions that will repay the loan.
• Securitizadora:
  Manages the collateralization and issuance of certificates of receivables (CRs) for the salary loan. It ensures that the loan operations are securitized and compliant with financial regulations.
• Investidor (Investor):
  The party that purchases the tokenized CRs, providing the capital for the salary loans.
• Contrato Inteligente (Smart Contract):
  Governs the entire process, automating validation, disbursement, tracking, and repayment. It ensures that all transactions are properly recorded and compliant with the agreed-upon terms.
• SCD (Sistema de Crédito Direto):
  A digital system that manages credit directly without traditional banking intermediaries, usually involving digital platforms like Zipdin.

Process Workflow:

• Registration of Eligible Borrowers:
  The employer sends a list of employees eligible for salary loans along with their respective borrowing limits to the system. This list is validated and recorded in the smart contract【17†source】.
• Loan Request:
  The borrower (employee) or the employer’s HR department initiates the request for a loan. The smart contract ensures that the loan request meets the eligibility criteria based on the pre-approved list of employees provided by the employer【17†source】.
• Validation and Approval:
  The smart contract validates the loan request. If the request meets the required conditions (e.g., within the borrowing limit and employee eligibility), the loan is approved. If the request does not meet the criteria, the system issues a denial response automatically via API【17†source】.
• Issuance of CR and CCB (Cédula de Crédito Bancário):
  Once the loan is approved, a CCB (a type of debt instrument) is issued in the name of the borrower. This is collateralized by the employee’s salary and formalized into a CR (certificate of receivable) that represents the debt owed by the borrower. The CR is tokenized and can be sold to investors, who purchase the CR tokens, providing the liquidity for the salary loan【17†source】.
• Disbursement of Funds:
  After the loan is approved and the CR is issued, the funds are disbursed to the employee via PIX (Brazil’s instant payment system). The entire disbursement process is managed by the smart contract, ensuring transparency and automation【17†source】.
• Repayment via Payroll Deduction:
  The loan is repaid via automatic payroll deductions from the employee’s salary. The employer is responsible for ensuring that the appropriate amount is deducted each pay period and sent to the dedicated account within the securitization structure. All payments and reconciliations are recorded on the smart contract, providing full transparency for both the borrower and the investor.
• Collateral Management and Investor Return:
  The investor tracks the movement and balance of the loans on the platform, and the repayment amounts are credited to the investor. Investors can also access the platform to approve additional loans or review the performance of their investment. The entire payment flow occurs through a segregated account within the securitization structure, ensuring that the capital and repayments are managed separately from other financial operations.

Risk Mitigation:

• Smart Contract Enforcement: The smart contract enforces all terms of the loan, including validation, disbursement, and repayment. This reduces human error and ensures compliance with pre-agreed terms, minimizing risk.
• Payroll Deduction (Desconto em Folha): Since repayments are made directly from the employee's salary before they receive it, the risk of non-payment is significantly reduced.
• Segregated Accounts: All payments and collateral are managed through segregated accounts, ensuring that the funds are secure and separate from other operational activities. This prevents any commingling of assets and enhances transparency for investors【17†source】.

Summary:

This salary loan operation utilizes a structured and automated process to provide liquidity to employees while offering investors a secure, collateralized investment opportunity. By using smart contracts and payroll deductions, the operation minimizes risks for both the borrower and the investor, while ensuring transparency, efficiency, and regulatory compliance. The use of securitization and tokenized CRs allows for a streamlined and scalable process that benefits all parties involved.