Line of Credit 

This article will explain how to board a Line of Credit Payment Account.   There are 2 ways to board a payment account as a line of credit:

• New Loan
• Existing Loan

  

Boarding as New Line of Credit

When boarding a New Line of Credit following these steps:

** NOTE - Make sure you have all Administrative Loan Type(s) and Payment Settings configured to accommodate unique Line of Credit requirements.

1.  Select New Loan
2. Verify Amount Financed
3. Select the checkbox for Line of Credit (Revolving) 
4. Determine what the Interest Starts Based On credentials should be:
   • Custom - select any date you would like
   • Funding Date - if you select Funding Date then the Funding Date field will be required
   • Note Date - uses the date listed in the Note Date field
5. Verify the Interest Start Date is what you are expecting it to be
6. Enter the First Payment Due date
7. Maturity Date and Revolving Term Ends are not required. However, if you have this information, you can enter them.
   Special Note - If NO Maturity Date is provided, Ventures will automatically use a date 60 months from the payment calculation date as the maturity date when setting up a loan with Principal and Interest as the Payment Type

   

   
    
8. Enter Interest Rate information starting with Rate Type:
   1. Fixed
      Enter Fixed Rate Amount

      

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   2. Variable
      1. Variable Rates Enter Spread
      2. Enter Base Rate
      3. Enter Rate Index

         ​

9. Confirm your Basis is accurate
10. Select Interest Rounding
    •  Half Round Up
    • Floor 
11. Select Per Diem Precision
    •  Full
    • Two Decimals
    • Three Decimals
    • Four Decimals
    • Five Decimals 
12. Enter Payment Details starting with Payment Type
    Note: Board the payment account as of the first payment type (ie if the first payment is Interest Only, and the remaining payments are P&I, you would board your payment account as an Interest Only Payment Type). 
    1. Principal & Interest
       1. Select Payment Type Principal & Interest
       2. Select Payment Frequency
       3. Enter Payment Amount OR use Calculate Payment
       4. Verify the Final Payment should be Due On Regular Due Date or change to Due On Maturity
       5. Optional Fields: Ballon Payment, Next Reamortization date and Reamortization Frequency 
          Note Reamortization fields are for internal use to track actions and do not perform any functions without lender's involvement.

          ​

    2. Interest Only
       1. Select Payment Type Interest Only
       2. Enter Payment Frequency
       3. Verify the Final Payment should be Due On Regular Due Date or change to Due On Maturity
       4. Enter First P&I Payment Date - If you know when the First Principal & Interest payment day will be, enter it here
       5. Enter First P&I Payment Amount - If you know what the amount of the First Principal & Interest payment should be enter it here
       6. Optional Fields: Ballon Payment, Next Reamortization date and Reamortization Frequency 
          Note Reamortization fields are for internal use to track actions and do not perform any functions without lender's involvement.

          ​

    3. Fixed Principal 
       1. Enter Payment Type Fixed Principal 
       2. Enter Payment Frequency
       3. Enter Fixed Principal Amount
       4. Verify the Final Payment should be Due On Regular Due Date or change to Due On Maturity
       5. Enter Payment Amount OR use Calculate Payment
       6. Optional Fields: Ballon Payment, Next Reamortization date and Reamortization Frequency 
          Note Reamortization fields are for internal use to track actions and do not perform any functions without lender's involvement.

          ​

    4. % of Principal Outstanding
       1. Select Payment Type % of Principal Outstanding
       2. Select Payment Frequency
       3. Enter the % of Principal Outstanding 
       4. Enter Minimum payment - if there is a minimum payment requirement use this field to list this requirement

          ​

13. Verify Borrower Fee Settings are what you would like to see

    ​

14. Enter your Initial Disbursement 
    Note - This is no longer a required field for LOC and can be listed at a $0 balance

    ​

15. Add any additional Owners/ Funding Sources that should be tracked for this loan

    ​

16. Board Loan
     

Boarding as Existing Line of Credit

Use this option when you have a Line of Credit that is already being processed in another system, and you want to board it from a point in time forward.

1. Select Existing Loan
2. Verify Amount Financed
3. Select the checkbox for Line of Credit (Revolving) 
4. Confirm Interest Paid to Date
5. Verify the Next Payment Due date
6. Maturity Date and Revolving Term Ends are not required. However, if you have this information, you can enter them.
   Special Note - If NO Maturity Date is provided, Ventures will automatically use a date 60 months from the payment calculation date as the maturity date when setting up a loan with Principal and Interest as the Payment Type

   

   
   ​
7. Enter Interest Rate information starting with Rate Type:
   1. Fixed
      Enter Fixed Rate Amount

      ​

   2. Variable
      1. Variable Rates Enter Spread
      2. Enter Base Rate
      3. Enter Rate Index

         ​

8. Confirm your Basis is accurate
9. Select Interest Rounding
   • Half Round Up
   • Floor
10. Select Per Diem Precision
    • Full
    • Two Decimals
    • Three Decimals
    • Four Decimals
    • Five Decimals
11. Enter Payment Details starting with Payment Type
    Note: Board the payment account as of the first payment type (ie if the first payment is Interest Only, and the remaining payments are P&I, you would board your payment account as an Interest Only Payment Type). 
    1. Principal & Interest
       1. Select Principal & Interest
       2. Select Payment Frequency
       3. Enter Payment amount OR Use Calculate Payment
       4. Verify the Final Payment should be Due On Regular Due Date or change to Due On Maturity
       5. Optional Fields: Ballon Payment, Next Reamortization date and Reamortization Frequency 
          Note Reamortization fields are for internal use to track actions and do not perform any functions without lender's involvement.

          ​

    2. Interest Only
       1. Select Interest Only
       2. Enter Payment Frequency
       3. Verify the Final Payment should be Due On Regular Due Date or change to Due On Maturity
       4. Enter First P&I Payment Date - If you know when the First Principal & Interest payment day will be, enter it here
       5. Enter First P&I Payment Amount - If you know what the amount of the First Principal & Interest payment should be enter it here
       6. Optional Fields: Ballon Payment, Next Reamortization date and Reamortization Frequency 
          Note Reamortization fields are for internal use to track actions and do not perform any functions without lender's involvement.

          ​

          
           
    3. Fixed Principal 
       1. Enter Fixed Principal 
       2. Enter Payment Frequency
       3. Enter Fixed Principal Amount
       4. Verify the Final Payment should be Due On Regular Due Date or change to Due On Maturity
       5. Enter Payment Amount OR Calculate Payment Amount
       6. Optional Fields: Ballon Payment, Next Reamortization date and Reamortization Frequency 
          Note Reamortization fields are for internal use to track actions and do not perform any functions without lender's involvement.

          ​

    4. % of Principal Outstanding
       1. Select % of Principal Outstanding
       2. Select Payment Frequency
       3. Enter the % of Principal Outstanding 
       4. Enter Minimum payment - if there is a minimum payment requirement use this field to list this requirement

          ​

          
           
12. Verify Borrower Fee Settings are what you would like to see

    

    ​

13. Review the Prior History details
    1. Enter Principal Balance 
    2. Enter other fee and past due amounts if necessary 

       

       ​
14. Add any additional Owners/ Funding Sources that should be tracked for this loan

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15. Board Loan