When you fund a loan, you can either loan money in the form of cash or check to the customer. You can also fund the customer electronically. You may also want to fund advancements after giving the initial loan. This article goes over the process of funding a loan.
Funding can be done from two different areas inside a loan. Both of these are inside the Account Setup tab of a loan. The first is in Setup Terms, the second is in Setup Tools. Inside of Setup Terms, you should have a Fund button.
Click the fund button and you will be taken to a new page where you can add a new funding request.
Note: This button is only available if the loan is in a Inactive state.
The Funding tool can also be accessed in the Setup Tools. Navigate to Account Setup > Setup Tools, then select the menu button in the top left to access the Funding tool.
Regardless of where you are starting from in the software, you can begin the funding request process by clicking .
This will take you to the process for creating a new funding request. The first step of the process is the User step. Here you will choose who to send funding to, either a customer directly, or a source company. Click either User or Source Company and then select the user or source company you want to fund from the selection box below. Once you have made your choice, click .
The next step is the fund step. In this step, you will choose the method of funding. You can send funds through ACH, EFT, or NACHA. Make sure you specify the correct payment process by selecting it from the “Payment Processor” drop-down. In order to create an ACH or EFT processor, you will need to have an account with an appropriate payment processor. You can also choose to fund the loan from a cash drawer. Click the option you want and then click .
The Account step is where you will choose which account the money will be sent to. Choose an option from the Payment Profile drop-down. You will have the option to choose any of the accounts that are already saved for the borrower or source company. If you need to enter a new payment method for the customer or source company, you must do so directly inside that customer or source company.
You can choose from the Authorization Type drop-down, which method is being used to authorize this funding transaction. The options are Company Signature (CCD), Individual Signature (PPD), Telephone (TEL), or Web (WEB). Since you are using the Internet to create this funding request, Web (WEB) is probably the right choice. You may have a different authorization type on file with your eCheck/EFT provider, and the selection should match that. Choose/enter the account information, choose an authorization type and click .
In the details step, enter the amount you are funding. This field will default to the loan amount. You can also select an amount from the quick amount drop-down by clicking the icon adjacent to the Fund Amount field. Options include: Loan Amount, Loan Amount - Discount Fee, Principal Balance, and Payoff. You can also enter the date on which the loan should be funded. Click .
Finally, you will see a summary of the funding transaction. Make sure the information is correct and click Save . This will complete the funding request and the money will be transferred from your account to the account you selected.