Enhanced Funding
How to disburse funds to borrowers through LoanPro's integrated payment processors.
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. LoanPro's Enhanced Funding tool lets you fund a loan in one or more transactions, either to the borrower directly or through a source company, which allows you to print a physical check. This article covers the process from start to finish in the UI, and also covers a legacy version of the tool which we still support.
You can also make funding transactions via the API (see API – Enhanced Funding).
Enhanced Funding Page
First, you'll need to navigate to the funding page. From the Account 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 Tracking, see our article on the Sources.
Customer
If you select Customer, you'll be directed to this screen, where you can enter transaction information.
For each transaction, you'll enter the following information:
| Field | Description |
| Enhanced 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 | 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. |
| 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. |
| 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.
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 with a Physical Check
LoanPro's Loan Management System (LMS) offers users the ability to fund loans with physical checks. In this article, we explain the process of creating and printing each physical check within the LMS UI, but you can also print checks via the API. This topic requires some background knowledge of source companies, so make sure to take a look at our Sources article if needed.
Setup with source companies
Before you can begin printing physical checks, you will need to ensure a few preliminary tasks have been taken care of. (This is where your knowledge of source companies will come in handy.) Funding with a physical check is achieved through a source company cash drawer. As such, the source company that will be funding the check needs to be set up. Once you have selected the Source Company that will be funding the check, you will need to fill out the Physical Check Funding Account information located under the INFO tab of the individual Source Company page.
As seen above, the Physical Check Funding Account settings includes multiple settings. Here, you can input check information. You can also upload logo and signature images on this page, and these images will be printed on your checks. For the best image results, we suggest uploading images that are rectangular and similar to a 5:1 aspect ratio.
Next, the user who is creating the check needs to be assigned to both the source company and a cash drawer. To do so, navigate to the EMPLOYEES tab of your selected source company; here, you can determine which users are assigned as employees to the source company. Once on the EMPLOYEES tab, simply select 'Manage Users' to add or remove users as source company employees.
Once the user is set as an employee, they can be assigned to a cash drawer. Head to the CASH DRAWERS tab on the source company page. Here, you can see the available cash drawers. If your source company does not already have a cash drawer set up, our Source Company – Cash Drawers and the Vault article explains how to do so. Next, assign the agent user to the cash drawer they'll be working from. Select the edit button, highlighted in red in the image below.
Simply add the desired user, and you're ready to create physical checks.
Logging the funding transaction
To create a physical check, begin by navigating to the loan receiving funding via the account manager. Once you are on the Loan Summary page of your selected loan, use the animation below as a reference to navigate to the enhanced funding tab of the loan page.
Select 'Print Check' from the Funding Method dropdown menu. Doing so will display a preview check. Notice that the check information is comprised of the information you set on the page for the Source Company. Here, you simply need to select which customer the check will be made out to, the amount, and the category. Once you are finished, click 'Next' to review and confirm the transaction information.
Once you have confirmed your transaction information, you will be redirected back to the Enhanced Funding page. Your check has now been created.
Printing a Physical Check
To print your check, scroll down on the Enhanced Funding page; scrolling down on this page allows you to see the history of funding for the loan account. Locate the funding instance that involves your physical check and select it to expand. Select 'Download PDF' to have a printable .PDF file created. Once downloaded, your printed check and receipt will look similar to the example shown below.
Before generating your PDF, ensure your browser enables pop-ups from LoanPro's domain. Otherwise, your PDF will be blocked from your view, and you won't be able to generate it again.
As a security measure, once your physical check PDF is generated once, it cannot be generated again. In other words, each physical check can only be generated one time, so it's important to plan accordingly. Once a physical check PDF has been generated, a tooltip will display who generated the check as well as the date and time. Simply hover over the 'Download PDF' icon to see this information.
While LoanPro's LMS can control how many times a check PDF is generated, it can't control how many copies of the check your personnel decides to print. However, if a user decides to print multiple copies of the same check, they will all be identical—including the reference and check number. A check deposited multiple times will likely be flagged for fraud, and the funds will either be returned or unavailable from the beginning.
Enhanced 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.
This article is about the original funding tool that was in place before a more recent release added the Enhanced Funding tool, which allows funding through source companies or printed checks, and generally improves the process. This older funding tool still works, but will likely be phased out in a future release.
Legacy funding tool
LoanPro still supports our legacy funding tool, which we explain here.
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, there should be 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 that this button is only available if the loan is in an 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 the “Add” button.
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” button.
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 “Next” button.
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 the “Next” button.
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 inverted caret 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 the “Next” button .
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.
Line of credit funding
Line of credit funding is also available in LoanPro. This tools was designed to support initial funds disbursements and line of credit draws.
To use the funding tool, open a line of credit account and navigate to Tools > Funding. Here, any previous funding transactions will be displayed.
To start funding a line of credit, click ‘New Fund’. Input the following information, then click ‘Save’.
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