Menu / Loan Servicing / Loan Activity / Loan Set Up

Loan Set up

The Loan Set Up page allows you to create multiple collateral loan (MCL) accounts for an ABL client.

Users can create new loan accounts, edit the existing loan account details, delete the existing loan accounts, and define interest rates along with the rate adjustments.

Users can also set up individual interest rates and charge codes & rates on each Loan ID. You may add all related transactions to the specific BBC.

By default, the loan account is created under the Loan Set Up page once the ABL client/borrower is created.

The default loan account would be considered an ABL Loan.

All loan transactions (BBC and Non-BBC loans) including interest and other charges will be tracked under the Collateral Loans page as one single Loan Account ID for the default loan account to get the outstanding Balance as a single amount against the borrower.

Any loan account created using the Create New option would be considered a Non-ABL Loan for the same ABL client.

Navigation: Menu →  Loan Servicing → Loan Activity → Loan Set up

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Configuring the ABL Loan:

Once the client is created, you can navigate to the Loan Set Up page to configure the ABL Loan or to make a non-ABL Loan. 

Here is how you can configure the ABL Loan.

1. The Loan ID field automatically displays a unique alphanumeric identifier generated from the Client Name and Client Number. Since there is only one ABL loan per client, this field is pre-filled based on the information provided during client creation.

2. The Loan Number and the Loan Name fields by default take up the Loan ID value. You can still make changes to the Loan Number and Loan Name as required.

3. Loan Type is by default is ABL, as there are no other loans created during the client creation process.

4. Define the Credit Line amount.

5. Select the Interest Rate code from the dropdown. The Interest Rate codes are set up here. 

6. Click the Interest Details link to get the Rate Adjustment prompt via which you can add interest rates.

7. Define the Minimum and the Maximum Interest rates for the loan.

8. The Loan Status field is auto-updated based on the current status of the loan. For new ABL loans, the value is "Active" by default.

9. Define the Min. Accrued Amount.

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The Min. Accrued Amount can't be negative. A negative value will issue a validation error to make the Min. Accrued Amount value greater than or equal to zero. 

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10. The Loan Collaboration Type currently defaults to Bilateral for all the ABL Loans.

11. Select the loan agreement date in the Loan Signed field.

12. Select the loan-funded date in the Loan Origination field.

13. Select the due date for the loan repayment on the Loan Maturity field.

14. The Loan Paid Off field will be auto-populated once the loan amount is fully paid off and the closing balance becomes zero. 

15. You can also add custom fields using the UDFs (User Defined Fields).  

16. The Add To BBC field for all the ABL Loans is checked by default. This allows the field values to be considered while calculating the BBC. 

17. The Ignore Cash App Payments is unchecked by default. 

If the loan origination date of the ABL Loan is greater than the MCL Loan, the repayments made via the Cash APP will be posted under the MCL Loans.

If the Ignore Cash App Payments field is Unchecked:
All the repayments done By: Invoice, Bulk, and Loan, will be posted under the ABL Loan. 

If the Ignore Cash App Payments field is Checked and the loan origination date of the ABL Loan is the same as the MCL Loan
 
The repayments done By Invoice will be posted under the ABL Loan. 
The repayments done By Bulk will be posted under the MCL Loan.
The repayments done By Loan will be posted under the MCL Loan.

18. Click the  button to finish configuring the ABL Loan.

19. A success message confirms that the loan has been updated.

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For MCL loans (non-ABL Loans), the Credit Line, Loan Status, Loan Maturity, and Loan Paid Off date fields are updated and for ABL loans, the Credit Line, Loan Status, and Loan Maturity fields are updated.

The ABL loan is always in Active status only. You cannot make the loan status inactive. In the Loan Set up page, for a loan ID, the credit line is considered for calculation only if the loan status is active with Add To BBC Flag "ON" and having Loan Origination Date <= Current BBC date.

In the Audit Logs page, in the case of an ABL loan, the Credit Line, Loan Status, Loan Maturity, and Loan Paid Off date are recorded with an Update action, displaying old and new values under the Loan Set Up program.

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Fields and Descriptions

If the Add To BBC flag is ON, then the system displays the sum of all principle balances to the loan in the Net BBC availability field under the BBC Availability page, Unapproved BBC page and BBC’s to be approved page (before approving the BBC).

If the Loan Status is INACTIVE, then the system will not add the inactive loans in the BBC Availability page even if the Add To BBC flag is ON. The system will not allow the user to edit the loan details in the Collateral Loans page for Inactive loans.

If the Add To BBC flag is ON, then the system displays the sum of all principal balances to the loan in the Current Balance column under the Client Summary page.

If the Add To BBC flag is OFF, then the loan details will not be added to the current BBC.

Interest Details

The Interest Details link allows the user to add and delete the positive rate adjustment value on the Loan Set Up page. You may also add the negative rate adjustment value in the Loan Set Up page only if the Interest Code Rate value is greater than the rate adjustment value. The created rate adjustment value will also be reflected in the Interest Details link under the Basic Parameters page.

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Fields and Descriptions:

To add the Interest details, perform these steps:

1. Click the  icon to add new interest details.

2. In the Effective Date column, select the start date for the interest rate adjustment.

The Effective Date should be greater than the last approved BBC and should be greater than the end of the previous month.

3. In the Value column, enter the rate adjustment value.

You may click the  button if you want to reset the fields before saving the interest rate adjustment values.  

4. Click the  button. The Interest rate adjustment value is successfully created and a success message “Rate Adjustment was successfully created" appears.

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Negative values should not be allowed to add as adjustment amount for the previous periods if the interest is set as Accrued To Loan/accrued to statement.

When user enters the negative Rate Adjustment value on specific date on which total Interest rate  become negative, the system shows an error notification.

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If the Effective Date is selected lesser than the last approved BBC and/or lesser than the end of previous month, then the system shows an error notification.

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To delete interest details, perform these steps:

1. In the Effective Date column, select the interest rate adjustment value that you wish to delete.

2. Click the  button. A delete pop-up window appears.

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3. Click the  button to cancel the rate adjustment deletion process.(or)

4. Click the  button. The interest rate adjustment value is successfully deleted and a success message “Rate Adjustment deleted successfully" appears.

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You can create, edit and delete the loan account based on the permissions provided under the Roles and Permissions page.

Create New Non-ABL / MCL Loan

This option allows you to create non-ABL loans.

To create new Non-ABL Loans, perform these steps:

1. Click the  button. The Create New page appears. 

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2. Populate all the required fields with appropriate information.

3. The Add To BBC field is checked by default. This allows the field values will be linked to the Current BBC (BBC Availability).
You can also uncheck the Add To BBC field. In this case, the loan values will not be linked to the Current BBC (BBC Availability).

4. The Transfer Accrued field is unchecked by default, that allows the interests and fees to be posted under the same MCL Loan.
If the Transfer Accrued field is checked, this allows the interests and fees to be posted under the ABL Loan with the Accrued Interest L or the Accrued Fees L posting type.

5. Click the  button to save and create a new loan simultaneously. (or)

6. Click the  button. The new non-ABL loan account is created and the message "Loan Created successfully" appears.

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Upon creating the new loan, the system logs the loan creation details in the Audit Logs page.

Users can enable or disable the Add To BBC flag while creating a new MCL Loan/Non-ABL Loan.

Users can enable or disable the Transfer Accrued flag while creating a new MCL Loan/Non-ABL Loan.

Enabling the Transfer Accrued field will transfer the MCL loan's Accrued Interest and Accrued Fees to the corresponding ABL loan, in cases where both fees and interest charge codes are set to Accrued To Loan.

Also, both Accrued Fees L and Accrued Interest L will be posted under the ABL Loan.

If the Transfer Accrued flag is OFF, then there won't be any transfers of Accrued Interest and Accrued Fees from MCL Loans to ABL Loans.

If the Credit Line, Expiry Date, and Risk Rating Code are mapped and the file is uploaded successfully without mapping the Loan ID under the Map & Uploads page, then the Loan Maturity Date and the Credit Line get updated according to the ABL Loan under Loan Set Up page.

If there are multiple entries with different Expiry Dates of the same client in the uploaded file under Map & Uploads page, then the system fetches and displays the greatest date as Loan Maturity date for ABL Loan under Loan Set Up page. If there are multiple entries with different Credit Line amounts of the same client in the uploaded file under Map & Uploads page, then the system fetches and displays the higher value as Credit Line for ABL Loan under Loan Set Up page.

If Credit Line, Expiry Date, Risk Rating Code are mapped, the Loan ID is also mapped and file is uploaded successfully under Map & Uploads page, then the Credit Line and Expiry Date of each Loan ID gets updated automatically under Loan Set Up page for each Loan.

If the Credit Line, Expiry Date, Risk Rating Code are mapped, the Loan ID is also mapped and the file is uploaded successfully under Map & Uploads page, then the Credit Line value will be Sum of Credit Line of all the Loan IDs (when Add To BBC Flag is ON) and the Expiration Date will be the greatest date among the Loan Maturity dates of all the Loan IDs (Can be taken from the Loan Set Up page of each Loan ID) under Basic Client Detail page.

Fields marked with * are mandatory fields. If the mandatory fields are not filled out while creating/editing the MCL loan, then the system shows an error notification.

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When the user inputs values in the UDF field while creating MCL loans or user updates the values in UDF field while editing ABL/MCL loans in the Loan Set up page, the system logs those entries in the Audit Logs page.

If the user enters the UDF Field value which is either lesser than the value defined in the Min Value field or greater than the value defined in the Max Value field (especially when the Validation Type is set as Range) under User Defined Field page, then the system shows an error notification.

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Edit the Loan

You can edit both ABL and Non-ABL Loans.

To edit the existing loan details, perform these steps:

1. Click the  button to edit the ABL loan.

For Non-ABL Loans, select the non-ABL loan from Loan ID drop-down menu and click the  button.

2. Edit the fields that you want to edit.

3. Click the  button if you want to cancel all changes done. A pop-up window appears.
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4. Click the  button. The loan details are updated and the message "Loan Updated Successfully" appears.

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Upon editing the existing loan, the system logs the loan editing details on the Audit Log page.

In Loan Set Up edit mode, the Add To BBC flag will be in the Read-Only state if the MCL loans are already mapped to either Collateral Loan/BBC or Collateral Loan/Non-BBC loan category through Map Loans under the  Participation Loan Details page. Hence, the user cannot enable or disable the Add To BBC flag even in Loan Set Up edit mode.

Users can perform enable or disable action on the Add To BBC flag for MCL loans in any of the following cases:

1. When the MCL loans are not mapped to any loan category through Map Loans under the Participation Loan Details page.
   
2. When the mapped MCL loans are removed from mapping which was already done through Map Loans under the Participation Loan Details page.

If any MCL loans are mapped to either Collateral Loan/BBC or Collateral Loan/Non-BBC category through Map Loans under the  Participation Loan Details page, an information  icon will be displayed right to the Add To BBC flag in Loan Set Up edit mode.

On hovering the mouse pointer over the  icon, the system displays the message as “This loan is mapped to a Loan Category in Participation and hence Add To BBC flag cannot be modified. To modify, please remove the mapping”.

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By default, the Add To BBC flag will be in non-editable mode for the default ABL loan. Hence, the information  icon will not be available for default ABL Loan even in edit mode.

Delete the Loan

You can delete only non-ABL loan accounts. You cannot delete the default ABL loan account.

You can view the button to delete the Non-ABL loans based on the settings done under Roles and Permissions page.

To delete the Non-ABL loan, perform these steps:

1. In Loan ID field, select the non-ABL loan from the drop-down list.

2. Click the button. A pop-up message “Are you want to delete the loan?” appears. Refer to the screenshotRefer to the screenshot

3. Click the  button if you want to cancel the loan account deletion process. (or)

4. Click the  button to delete the loan account. The non-ABL loan account is deleted successfully and BBC recalculation is triggered automatically. A success message “Loan deleted successfully and triggered BBC recalculation” appears.

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Upon deleting the non-ABL loans, the system deletes the respective loan ID in the Loan Set Up page, Loan Summary page,  Collateral Loans page, Charges Templates page, Process One Time & Manual Charges page, Interest Payment page and BBC Availability page. The system logs the loan deletion details in the Audit Log page.

The system shows an error notification when you delete the loan account in the following conditions.

1. If the loan account has any records on the Collateral Loans page.
2. If the loan account is linked to the approved BBC.
3. If any payment is made via Cash Application for the specific loan account.

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If the user enters special characters in the Loan No and Loan Name field, then the system shows an error notification.

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Upload Loan Documents

To upload the Loan Documents, perform these steps:

1. In Loan Documents field, Click the  button.

2. Select the file that you want to upload.

3. Click the  button to upload, save and create new loan simultaneously. (or)

4. Click the  button. The loan documents are updated successfully and a message “Loan Updated Successfully” appears.

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You can click the  button and click icon in Loan Documents fields to delete the uploaded loan documents. The uploaded loan document is deleted and a success message "File Deleted Successfully" appears.

You may view the uploaded documents under Document Management page.

You may use the same loan names for different clients while creating the multiple loan accounts. If you use the same loan names for the same client while creating the multiple loan accounts, then system shows an error notification.

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If a user enters any special characters in the Credit Line field, then the system shows an error notification.

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Schedule Credit Line

The Loan Set Up page has a scheduler feature, where users can set a schedule for the credit line, allowing the credit line value to update automatically by the cron job on the scheduled date.

Users can also be able to update/stop the existing schedules.

The scheduler is available to configure for both the ABL and MCL loans.

You can summon the credit line scheduler from the Loan Set Up page via the edit mode.

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You can follow the below steps to schedule a credit line for a loan.

1. On the Loan Set Up page, click the  button.

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2. The previous action will put the Loan Set Up page on edit mode.

3. Now, click the  button to summon the credit line scheduler.

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4. You can schedule the recurrence pattern (The frequency of updating the credit line value) in the following 2 ways:

    a. Daily / Weekly: 

i. Select the recurrence pattern as Daily / Weekly, and select all the days of the week to update the credit line daily. The Daily / Weekly option starts on Sunday and ends on Saturday.

Monday and Tuesday are selected by default.

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Here, the credit line gets updated every day of the week until the specified End By date.

ii. Select the recurrence pattern as Daily / Weekly, and select a specific day of the week to update the credit line on that day each week.

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Here, the credit line gets updated every Tuesday of the week until the specified End By date.

    b. Monthly / Yearly: The Monthly / Yearly recurrence pattern is selected by default.

i. Select the recurrence pattern as Monthly / Yearly, and select Month to run the schedule every month on the selected date. The Monthly / Yearly option starts from 1st of the month till the last day of the month.

1st of Every Month is selected, by default,.

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Here, the credit line gets updated every month on the selected date until the specified End By date.

ii. Select the recurrence pattern as Monthly / Yearly, and select the name of a month to run the schedule once a year on the selected date.

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•  Here, the credit line gets updated once a year on the selected date until the specified End By date.

  Selecting the "Last Day" will update the credit line on the last day of the selected month or on the last day of every month.

5. The End By field lets users specify a date until which the system updates the credit line according to the defined recurrence pattern. After this date, the pattern will no longer run.

The End By date must be greater than equal to the current date.

End By dates that are earlier than the current date are grayed out and cannot be selected.

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6. The Next Run Date displays the scheduled date for the next credit limit update according to the defined recurrence pattern.

7. The Change Credit Line field helps increase or decrease the credit line value. Users can define a value by which the credit line increases or decreases on the scheduled date.

For Example:

If the Credit Line is set to increase or decrease by $500 on the scheduled date of 10 Dec, 2024, the total Credit Line gets increased or decreased by $500, on 10 Dec, 2024, once the corn job runs.

 The Change Credit Line field accepts only numbers greater than 0. Entering a value less than 0 triggers a validation failure.

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The Change Credit Line field rejects alphabetical inputs, causing a validation failure for any such entries.

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8. The Schedule Timeline section displays a list of the next 10 schedules, based on the configured Schedule Run Time and Recurrence.

The Schedule Timeline section only displays up to 10 scheduled dates.

If there are more than 10 scheduled dates, a message will be displayed stating "Display is limited to next 10 schedules, but Schedule Credit Line will run till the defined 'End by' date", as shown in the below image.

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9. Click the  button to save the schedule. The create/update schedules will be logged on the Audit Log page, under the Schedule Credit Line program.

10. You may cancel the schedule by either clicking the  button or clicking on the Back to Loan Set Up page button. 

On the confirmation prompt click the  button to abort the cancel action Or click the  button to proceed with the cancel action.

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11. The system provides a success message once a schedule is set for the first time.

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12. The system provides a success prompt after every successful update made to an existing schedule.

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13. When a credit line schedule is executed, the updated credit line value is recorded on the Audit Log page under the Loan Setup program, with "System" listed as the user, applicable for both ABL and MCL loans.

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14. The credit line value is also updated on the pages and fields below.

• Line & BBA Reserves page - Commitment / Line Limit with Reserve values
• BBC Availability page - Commitment / Line Limit with Reserve values (Unreleased BBC)

For approved BBC, the Credit Line value will not be updated in the history pages. 

• Basic Client page - Credit Line value
• Client Summary page - CURR Ln Lmt w Res value

If the Loan Status is Inactive on the Loan Set up page, users are not allowed to schedule a credit line. The  button will be disabled for the MCL Loan in this case.

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If the Client is Inactive on the Basic Client Detail page, users are not allowed to schedule a credit line. 

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The  button will be disabled for both MCL and ABL Loans in this case.

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If the Scheduled Credit Limit is more than the Actual Credit Limit, the resulting value must be 0(Zero). The Credit Line value can't be negative.

Fields and Descriptions: