Enhanced Funding

This article covers the new Enhanced Funding tool that was added with LoanPro's latest release. For info on the old process, see our Fund a Loan article.

When you set up a loan, one of the most important tools available in LoanPro is funding, which keeps track of how you actually gave the money or collateral to the customer. The new, enhanced funding tool lets you fund a loan in one or more transactions, either to the borrower directly or through a source company. This article covers the process from start to finish in the UI.

You can also make funding transactions via the API (see API – Enhanced Loan Funding).

Funding Page

First, you'll need to navigate to the funding page. From the Loan Manager, select a loan, then navigate to Account Setup > Setup Tools. Click the icon with the three horizontal bars to select the Enhanced Funding tool.

The funding page lists funding transactions, and each entry tells who was funded how much, the payment method and the date, as well as some basic info like a transaction ID, category, and whether it was successful.

Create a New Fund

To add funding to a loan, click the New Fund button in the top right. You'll be asked to select either Borrower or Source Company.

  • Borrower refers to the customer themselves. You're giving the money to them directly.
  • Source Company refers to another business (or even just another location) that you'll fund, who will then provide a good or service to the customer. For instance, you might send funding to a car dealership, who then give a vehicle to the customer. For more info on Source Companies, see our article on the Source Company Manager.

Borrower

If you select Borrower, you'll be directed to this screen, where you can enter transaction information.

For each transaction, you'll enter the following information:

Field

Description

Funding Method

How the transfer will be made. Selecting Bank Card, Bank account/ACH deposit, or EFT Transfer will add a field for a Merchant Processor Group. You can also select Cash Drawer or Paper Check if you have checked out a Cash Drawer. (To set up a paper check, see the Source Company Manager Info Tab.)

For more information on how to fund loans with printable checks, read our Funding with a Physical Check article.

Customer

You can select any customer linked to the loan.

Payment Profile

After selecting a customer, you'll be able to pick any of their payment profiles. This is required for Bank Card, Bank account/ACH deposit, or EFT Transfer.

Merchant Processor Group

If you've selected a bank card, bank account, or EFT transfer, there will be an option to select a Merchant Processor Group who will process the transaction. Make sure, though, that the group you've selected includes processors capable of funding. LoanPaymentPro, for instance, can fund both bank accounts and bank cards.

Authorization Type

When using a Bank account/ACH deposit, you'll use this field to select how the transaction was authorized. You can select a Company Signature (CCD), Individual Signature (PPD), Telephone (TEL), or Web (WEB).

Category

You can assign a category label to help keep track of different types of funding transactions. For more info, see our article on Creating a New Funding Category.

Amount

The amount you are funding in this transaction.

Once you've entered all the information on the transaction page, click 'Next' in the bottom right corner to see a quick confirmation of those details.

If you enter an amount greater than the total loan, you'll get this warning:

Warning label that tells users they are attempting to fund an amount greater than the total loan.

Finally, click 'Finish' to add funding.

Source Company

If you choose to fund the customer through a source company, the process is similar. However, the loan account will have to first be assigned to a source company. To assign one, navigate to Loan Settings > Settings > and then click 'Edit' within your loan. Once you have a source company assigned, you can select 'New Fund' to create a new transaction. It brings up a window like this:

The payment profiles will be pulled from the Info Tab of the Source Company Manager.

Funding Details and Options

Once you've added a funding transaction, it'll appear back on the funding tool page. Clicking the drop-down arrow will give you information about the transaction, including the transaction and batch ID used in Secure Payments.

Clicking "Reverse" will bring up this window, allowing you to cancel a funding transaction:

There are a few fields you'll need to enter before you can reverse the payment:

  • Reversal Reason – Why you're reversing the transaction. The options are Check Bounced, Clerical Error, NACHA Error Code, Insufficient Funds, or Other.
  • Reverse Merchant Transaction – This box is checked by default. If it's checked, the payment will be reversed in LoanPro and Secure Payments. If you uncheck it, it will be reversed in LoanPro, but the Secure Payments transaction will be untouched.
  • Reversal Comment – Here you can add a little more information about why you're reversing the transaction, like the NACHA Code you received, or what error was made.

Auto Reversal

Secure Payments and LMS communicate with each other to ensure your records match. If a funding transaction fails in Secure Payments, its status will be updated in LMS to reflect this. You can view the status of a transaction in LMS by clicking it.

LMS and Secure Payments also feature transaction auto-reversal; if transaction is reversed in Secure Payments, it will automatically be reversed in LMS as well. However, this only occurs if auto-reversal is turned on for the specific payment processor, and each individual processor within a category needs to be updated. You can turn this setting on by navigating to Settings > Company > Secure Payments and selecting the appropriate processor type header. Here, you can take a glance at which processors have auto-reversal turned on and which don't. To turn the setting on or off for a specific processor, locate the specific payment processor and select the pencil icon to edit its settings. Then, under the "Settings" section, change the Auto Reversal option to "Yes".

Once auto-reversal is turned on for the specific processor, funding transactions that are reversed in Secure Payments will have their status in LMS automatically updated as reversed.


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