Logging payments should be a frequent activity for any lending company. Payment defaults are designed to make this process as efficient as possible. This article will cover setting the payment defaults.
To set the defaults for new payments, navigate to Settings > Defaults > New Transaction > Payments inside your company account.
You can set separate payment defaults for any loan type within any loan class. Select the loan class (Automobile, Real Estate, Consumer, Other) for which you want to set defaults. Now choose the Loan Type (Installment, Flooring, Credit Limit, Lease) that these defaults will apply to.
Your options for payment defaults are as follows:
- Payment Type – This defines the order of application among the different parts of a loan (interest, principal, fees, etc.)
- Extra Towards – Between Periods – This defines how any amount paid in excess of what is due an a loan with between periods interest application should be applied.
- Extra Towards – Between Transactions – This defines how any amount paid in excess of what is due an a loan with between transactions interest application should be applied.
- Service Fee – This lets you choose whether a service or convenience fee should be added to payments that are processed using merchant services through LoanPro’s payment integrations.
- Payment method – This lets you choose the medium by which the payment was made (e.g. cash, check, etc.).
- Authorization Type – This is specific to payments made via eCheck and lets you choose the method by which eCheck payments are usually authorized.
- Early Payment – This setting only applies if interest application is set to between transactions. This option gives your customer the benefit of less interest accruing if a payment is made early.
- Reset Past Due – This lets you choose whether to reset days and amount past due to 0 when a payment is made, even if there is actually still a due balance on the account.