# Payment Information

### General

The payment information section of the payment wizard is for the information specific to the payment you are logging. The information you enter here will determine when and how the payment will apply.

#### Options

The following options are available when logging a payment:

**Type of Payment** – This option will dictate the waterfall application of a payment. Typically, payments apply to fees, then interest, then principal. The waterfall application of the payment type you choose will appear under this selection box. To customize your list of payment types, go to Settings > Loan > Payment > Types.

**Amount** – This is the amount of the payment.

- This is a drop-down menu that gives a list of amounts that the customer is likely to pay. Making a selection from this drop-down will update the amount field.
- Due – This is the total amount past due on the loan.
- Next – This is the amount of the next payment that will come due on the loan.
- Full – This is equal to the due amount plus the next amount.
- Payoff – This is equal to the payoff amount for today on the loan.

**Payment Method** – Here you can select the method used to make the payment. You can customize the list of payment methods in Settings > Loan > Payments > Methods.

**Date** – This is the date that LoanPro will use to apply the payment. In the case of between periods interest application, that doesn’t necessarily mean that payments will be applied on this date. In a between periods application, the payment applies on the day the payment was due if the payment was made on time or early. If the payment was made late, it will apply on the date entered in this field. There is also an icon for a drop-down menu with quick access to frequently used dates.

**Info** – This field lets you enter information about the payment to help you remember specifics about the payment. Companies often use this to log check or money order numbers. This field defaults to show today’s date and the method used for the payment.

**Extra Towards** – This option will be different depending on your interest application. This option lets you choose how any amount paid above the amount due on the loan will be applied.

- Between Transactions – When a payment is applied to a loan or lease account, depending on the payment type and the associated waterfall application, portions of the payment may apply to the different payment components (e.g. fees, interest, principal).
- Principal Only – This option will apply the extra amount towards principal, but it will not affect the amount past due or the next due payment amount.
- Principal – This option will apply the extra amount towards principal, and the application of this amount will decrease the amount past due. Additionally, this could also decrease the next due payment amount.
- Classic – This option will apply the payment first towards any due amounts on the loan with a waterfall application based on your chosen payment type. This amount will include any interest that has accrued since the last payment came due through the payment date. The next due payment will have its interest amount reduced by this accrued interest amount. Any amount in excess of the amount due on the loan will next be applied to the next payment that is scheduled to come due. If there is anything left over after the next payment is made it full, it will apply towards principal ONLY. For example, if $128.00 is due on the loan and the next payment amount is $280.00, if a $500.00 payment is made, it will apply first to the $128.00 that is due, next to the $280.00 that hasn’t come due yet, but is the next scheduled payment. This will leave $92.00 that will be applied as a principal-only payment. The principal-only portion will not affect the amount past due. If any interest has accrued between the time the last payment came due and the date the payment is made, the numbers will be different, but the net result will be the same. For example, if $25.00 has accrued in interest since the last payment came due, the $500.00 payment will apply first to the sum of the $128.00 and the $25.00 in accrued interest ($153.00), then towards the next due payment of $280.00 minus the $25.00 in accrued interest ($255.00), then $92.00 will go towards principal ONLY. If there is no amount due on the loan, the payment will apply to accrued interest, then the next payment, then principal ONLY. In our example it would apply to the $25.00 amount first, then the $255.00 amount ($280.00 – $25.00) and the balance of the payment ($220.00) would apply as a principal-only payment.
- Classic v2 – This option works like Classic with one change: A borrower can get ahead by two periods instead of just one. If the customer has already prepaid two periods, then any additional payments will apply directly to principal, and a regular payment will be due three periods down the road. For instance, if $80 is due but the borrower pays $300, then $240 will go to the due payment and the next two, and $60 will go towards principal. Allowing a customer to pay off many months at a time might introduce a risk of losing contact with them, so this option limits how far in advance they can pay off.

Between Periods

- Next Payment – This option will apply the extra amount to the next payment on the next payment due date.
- Principal Only – This option will apply the extra to principal and neither the amount past due, nor the next due payment amount.

**Cash Drawer** – If the agent user logging the payment is associated with a Source Company and has checked out a cash drawer, then it will be shown here. Any cash payments made will be tracked on their cash drawer.

**Early Payment** – This option is only present if interest application is set to between periods. If you choose Yes for this option then the borrower will pay less interest if the payment is made before the due date.

You can also choose to log your payment as a payoff payment which will let you pay off the rest of the loan balance. You also have the option to enter a custom payment application.

This page also includes information about the waterfall application. To view it, click Waterfall Application. Some loan information is also shown to aid in determining what you want to do with the payment you are logging.