Reserve as Mark-Up Using the Ratio Method

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Reserve as Mark-Up Using the Ratio Method

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-Calculates your reserve by using a ratio of two interest rates (the bank’s buy rate, and the charge rate to the customer).

*NOTE : In some circumstances your bank will require the ratio method for calculating reserve. Do NOT select it unless you are told to by your bank.

*Selecting Lien Holder Defaults

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*Below is what the actual sales screen looks like when using the Flat Amount method:

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Note : you still need to enter in what percent of the mark-up the bank will hold in reserve, the ratio method just calculates that mark-up in a different way.
 Again, this method isn't used unless the bank specifically requires it.

 

 

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