Moneylender Professional - Loan Servicing Software

The Loan Record

Loans are composed of many pieces of information. Some you enter when you create or edit a loan, while most is computed by Moneylender automatically. Changes to loan records are done using the Loan Wizard. The Loan Wizard is a series of dialogs structured to ensure a loan is not edited in a way that makes it invalid. For example, changing a loan's maturity date to a date before the open date could cause major problems when calculating the loan's balance.

As records like payments, rates, regular payment changes and third party fees are created for a loan, the Loan Wizard automatically recalculates to incorporate this data into the balance and other computed values.

If you want to open the Loan Wizard with a new loan record (add a new loan to your portfolio), click New Loan from the Loan menu, or click the New Loan (New Loan button) button on the toolbar.

If you want to edit an existing loan, you have two options:
  • Select it in the list of loans and click Edit Loan from the Loan menu.
  • Right-click the loan, and click Edit Loan from the pop-up menu.
There are eleven dialogs in the loan wizard. Depending on the settings of your loan and your portfolio's Metro2 settings, you may not see all screens. When Moneylender has enough data to handle your loan, the Finish button will be available. Any subsequent screens contain support information for Moneylender's non-critical features.

The Loan Wizard
Loan Wizard Account NumberAccount Identification
To get started, a loan needs an identifying account number. Enter any combination of letters, numbers, or other characters as the account number.
Principal, Interest, Late Fees dialogPrincipal, Interest, and Late Fees
Enter the amount of the loan as principal. Enter the annual interest rate as a percentage.

In some cases, you might be using an interest rate that is not annual. If you charge a monthly rate, multiply that by twelve to get the annual rate. For example, you might charge 20% of the outstanding balance each month. To properly compute this interest, you need to enter 240 (20 x 12) as the annual interest rate.

For the late fee, you can enter a flat fee amount or a percentage of the regular loan payment.
Loan Wizard DatesDates
When selecting dates for your loan, enter the first date that you started working on the loan as the Created date.

Enter the date the loan funds — the date interest begins accruing — in the Interest Applies field. If interest is computed on its own schedule, this is the basis for determining the interest cycle.

If a loan is a regular fixed-term loan, and the interest applies with the payments — as with mortgages — the period between the Interest Applies date and the First Payment date is specially computed.

The number of days between these dates is used as the basis for how much interest to assess. For instance, if 45 days elapse from Interest Applies to First Payment, interest is assessed for the full 45 days, not one month. Thereafter, interest is computed using the standard formula for the payment schedule.

The First Payment date is used to determine the expected payment cycle. If payments arrive on a variable schedule, this date is still used for some calculations and should be set to the earliest date a payment might arrive.
Loan Wizard Loan TypeLoan Type
The type of loan determines which interest calculation algorithm is used to figure interest. Most loans are Fixed Term. Auto loans, mortgages, and many other installment loans are based on the idea of a payment arriving on a regular schedule. Interest applies on the same schedule.

Scenarios where payments arrive at irregular intervals are handled with the Variable Payment/Variable Schedule setting.

Handle pre-computed interest by selecting Interest Up Front. In the Interest Up Front scenario, you cannot change the interest rate or the regular payment amount during the course of the loan. The timing of payments affects only the addition and repayment of late fees and third party fees. Using a negative payment amount to add principal to an Interest Up Front loan does not affect the amount of interest charged.

If you are charging interest on any unpaid interest (compound interest), leave the Simple Interest box unchecked. If you only charge interest on the principal portion of the outstanding balance, check the Simple Interest box. In many places, simple interest is a legal requirement. Check with your local regulatory agency for the laws that apply to your loans.
Loan Wizard Payment SchedulePayment Schedule
In a Variable Payment/Variable Schedule scenario, the number of payments is disabled, but the arrival frequency can still be set. The loan remains in Paid status at all times, regardless of the date the last payment was made.

In all other scenarios, Moneylender requires a specific number of payments in order to set a schedule to properly compute the loan.
Loan Wizard Loan MaturationLoan Maturation
Moneylender determines the date when the last payment should be made. To create a balloon payment scenario, change the Maturation Date to an earlier date. The balloon appears on the Amortization Table Report that applies to the loan.
Interest ScheduleInterest Schedule
In general, interest is computed on the payment schedule for fixed term loans. It may be separated for variable payment schedule loans.
Loan Wizard Regular PaymentRegular Payment
The Regular Payment amount can be set to a pre-set amortized repayment amount, an interest only payment, or any other schedule you like.
Loan Wizard BorrowersBorrowers
Add or select the borrowers associated with this loan. The primary borrower typically receives all correspondence.
Loan Wizard LenderLender
Create or select the lender that collects on this loan.
Loan Wizard Prepayment PenaltiesPrepayment Penalities
If there are prepayment penalities for a loan, enter the information into this dialog.
Loan Wizard Metro 2 ReportingMetro2 Reporting Information
If Metro2 is enabled from the Portfolio Settings dialog, this window gives you the opportunity to enter loan-specific reporting values.
Loan Wizard dialogCustom Information
You may wish to enter custom information into custom fields or describe collateral on a loan. A General Notes field is available for other information.

Each of these fields can be inserted into statements, so you may find it useful to record unique loan-specific information in one of the custom fields for inclusion on statements and other correspondence.

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