Business
PowerBand Clarifies Revenues and Reduced Risk Vis a Vis Leases Arranged on DRIVRZ
VANCOUVER, BC / ACCESSWIRE / April 12, 2021 / As DRIVRZ™ increases the number of le...
About this update from Ameritrust Financial Technologies Inc.
[{"type":"text","content":"PowerBand Clarifies Revenues and Reduced Risk Vis a Vis Leases Arranged on DRIVRZVANCOUVER, BC / ACCESSWIRE / April 12, 2021 / As DRIVRZ™ increases the number of leases financed for drivers and automotive dealers on its virtual platform, PowerBand Solutions Inc. (TSXV:PBX) (OTCQB:PWWBF) (Frankfurt:1ZVA) (\"PowerBand,\" \"PBX\" or the \"Company\") wishes to clarify the income reporting and liability aspects of its reporting.Under pre-existing agreements with financial institutions, it is DRIVRZ™ role to receive requests for leasing and financing, approve the credit worthiness of applicants and accept the lease. These leases - carried out with the proprietary software of our DRIVRZ™ Finance division - are then formatted to meet the contract standards and protocols of our lending partners.Once complete, usually within a business day or less, our financial lenders assume the lease, its benefits, and all potential liabilities.PowerBand reports DRIVRZ Finance leasing sales as part of Company gross revenues, which in the case of DRIVRZ Finance are the adjusted capitalized cost on a lease (initial balance on the lease). Revenues derived from commissions, fees and other associated arrangements that form a percentage of the executed leases are paid in full at the time a lease contract is handed over to our lending partners.At no time does PowerBand retain these leases on its books, nor does it assume the liability of non-performing leases,\" said PowerBand CEO Kelly Jennings. PowerBand's associated lease revenues - fees and commissions - are immediate upon handing over a lease and are not compromised or reduced by any non-performance of the leases which our financial lenders assume from PowerBand and their DRIVRZ™ platform.\"\"Simply stated, we sell the leases to our financial lenders, so PowerBand assumes no credit risk or customer default risk,\" said PowerBand CEO Kelly Jennings.\"Because the lease and vehicle are transferred to our lender, we bear no risk for the actual cost or residual cost of the vehicle. In essence, we are able to recognize upfront revenue from acquiring a customer, transacting and selling the lease, as opposed to earning those revenues over the four-to-five-year life of the agreement as would be the case in a warehouse lease facility.\"The terms of these forward-flow sale agreements are...