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 and enhanced funding tool lets you fund the 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).
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.
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:
- 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.)
- Customer – Any customer linked to the loan.
- Payment Profile – The payment profile connected to the customer. 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.
- 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:
Finally click Finish to add funding.
If you choose to fund the customer through a source company, the process is similar. It brings up a window like this:
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.