In LMS, Charges are fees added to a loan—think late fees and convenience fees. Charges can be assessed in many ways, and some of which are designed for specific purposes. In LMS, you can
Charges can be configured to be paid either by payments made after the charge date or by payments made within the same payment period as a charge. You can also set up the waterfall application for payments inside LoanPro to determine how payments should apply to charges. However, it's important to note that charges exist outside of the normal payment schedule.
Knowing how charges work can help you do some unconventional things with our software. For example, lenders will often schedule recurring charges to assess a fee in each payment period. While it is possible to do this, the fees won’t actually be assessed until either a specific day of the month or within some number of days of when each payment comes due. This means that you won’t be able to see a payment schedule that shows a fee in each period since each fee will be assessed in the future.