Manual payments
Learn how to manually log payments across different account types with ease, accuracy, and efficiency.
Logging manual payments in LoanPro’s LMS allows lenders to record and track offline transactions, such as cash or physical checks, directly within a borrower’s account ledger.
This article provides a step-by-step breakdown of how to log payments—both single and split transactions—on loan and line of credit accounts. It also includes important information on how to select dynamic payment amounts and configure advanced settings that align perfectly with your system's interest application rules.
Logging a loan payment
There are three ways to log a payment within an individual loan account:
1. On the Summary page, select the 'Make a Payment' button in the middle right side of the page.
2. Navigate to Servicing > Payments.
3. Select the “Log” dropdown menu in the upper right side of the page and then click Payment.
On the payments page, click Log Payment. Two options will then appear: Log Payment and Log Recovery Payment. For a general payment, select Log Payment. If an account has been charged off, choose Log Recovery Payment.
Payment information
After selecting the type of payment you will make on the loan, the payment wizard will appear. On the Payment Information tab, you can configure the following settings:
| Field | Description |
|---|---|
| Type Of Payment | Dictates the waterfall logic of a payment. The selected type tells the LMS how to distribute funds across principal, interest, fees, and escrow. To customize your payment types, navigate to Settings > Loan > Payments > Types. |
| Amount | The total dollar value of the payment. You can manually enter an amount or select a dynamic option from the dropdown menu. Dynamic options include:
|
| Payment Method | Identifies how the payment is being made. You can customize the list of payment methods allowed in Settings > Loan > Payments > Methods. There are two categories for payment methods: 1. Manual/Unprocessed Payments: If the payment was made via a method that does not require electronic processing (e.g. cash or check) or if it is being recorded as a log-only payment that is processed outside of LoanPro, leave the payment profile unselected. 2. Processed Payments: If the payment was made via a bank card (e.g., credit card or debit card), an e-check (ACH), or another method that requires electronic processing, you must choose a payment profile. |
| Date | The transaction date of the payment—when it applies to the account. On this date, interest adjusts for the remaining balance on the loan. You can access frequently used payment dates in the dropdown menu, which includes: AutoPay Dates, Next Due Date, and Regular Due Date Payment. However, if the Interest Application setting is set to Between Periods, the payment date may vary.
|
| Info | An optional memo/notes field. This field defaults to today's date and the chosen payment method, but you can overwrite it by entering different information. |
| Extra Towards | Controls how extra funds—if any exist—are applied to the loan balance. This autofills with default values set by the lender. The available options vary depending on the Interest Application setting on the loan, which can be set to Between Periods or Between Transactions. If the Interest Application on the loan is set to Between Periods, you have two options: 1. Principal Only: Applies the extra amount directly to the principal. This will not affect the past due calculation or the next payment amount on the loan. 2. Next Payment: Applies the extra amount to the next due payment. The application date of the extra amount will be the same as the next scheduled payment date. If the Interest Application is set to Between Transactions, you have seven options: 1. Principal: The extra amount will apply directly to the remaining Principal Balance. This will affect the past due calculation and when the next payment is called for on the loan. 2. Principal Only: The extra amount will apply directly to the remaining Principal Balance. This will not affect the past due calculation or when the next payment is called for on the loan. 3. Next Forecasted: The extra amount will apply first to the amount due, then to the next forecasted amount and then as Principal Only. This option will consider the next forecasted amount regardless of when it's due. 4. One Period Forecasted: The extra amount will apply first to the amount due, then the next forecasted amount, and finally as Principal Only. This option will only consider forecasted amounts that are due within the next singular period. 5. Two Period Forecasted: The extra amount will apply first to the amount due, then the next two forecasted amounts, and finally as Principal Only. This option will only consider forecasted amounts that are due within the next two periods. 6. APD then Principal Only: The extra amount will apply first to the amount past due and then as Principal Only. 7. Full then Principal Only: The extra amount will apply first to the amount past due, then the next scheduled amount, and finally as Principal Only. |
Not all of these settings will appear when logging a recovery payment.
Payment profile information
If you are making a payment that requires processing, you must select an existing payment profile associated with the customer or create a new one. Once you have selected a payment profile, you can set the payment processor, authorization type, and convenience fee.
Convenience fee for a loan
The convenience fee setting only appears when logging a payment that requires processing. It defaults to the configuration you set in Loan Settings > Settings > Convenience Fee, but you can change it. Convenience fee options include:
- Waive Convenience Fee
- Flat Fee
- Fee %
- Greater of Amount or Percentage of Payment
- Lesser of Amount or Percentage of Payment
When you're done here, click Next. If the account is linked to another loan in the system, a Split Payments tab will appear in the payment wizard. If you do not have linked loans configured for split payments, you will be taken to the Preview & Confirm tab.
Preview & confirm
The final tab of the payment wizard for loan accounts is Preview & Confirm. It shows how the payment will be applied and provides the text for customer authorization. To customize this text, go to Settings > Loan > Payments > Authorization Text.
If the payment application is what you expect, click Process Payment to finish logging the payment. Otherwise, go back to the Payment Information tab and modify the payment settings.
Logging a line of credit payment
Logging a payment for a line of credit account is slightly different from logging a loan payment. Navigate to Lines Of Credit Manager > select the line of credit account. From there, you can log a payment in one of two ways:
1. On either the Summary or Statements page, click the ‘Make a Payment’ button on the middle right side of the page
2. Select the “Log” dropdown menu in the upper right side of the page and then click Payment.
First, fill out the basic payment information: payment amount, date the payment will be applied, and the payment type. You can enter a payment amount or click the arrow to the right of the Amount field to select from preset options: Remaining Payment Amount, Total Balance, Amount Past due, or Statement Balance.
The Info field is required and can be used to record more information about the payment, such as a receipt or payment number.
Payment method details
In the Payment Method Details section, the ‘Payment Method’ field appears by default. If your Program settings default to a payment profile, the ‘Payment Processor’ and ‘Authorization Type’ fields will also be displayed.Click the arrow to the right of the field to open the dropdown menu, which contains two sections: Payment Profiles and Offline Processing.
Payment Profiles: Select an existing tokenized account from the customer's stored payment profiles or add a new one by clicking Add Payment Profile +.
Offline Processing: Choose from a variety of options if the payment was processed outside of the LMS, including cash, check, and direct deposit.
Depending on the payment method chosen, additional fields may appear that ask you to select a payment processor and an authorization type.
- If the payment was made via cash, check, or another method that does not require electronic processing, leave the payment profile unselected.
Custom fields
This section lists any custom fields that are applicable to your payment. Review custom fields for configuration instructions.
Convenience fee for line of credit
If you chose a payment profile as the payment method, a Convenience Fee section will populate, and you will be required to select an option from the list. You can choose:
- Waive Convenience Fee
- Fixed Dollar Amount
- Percentage of Payment
- Lesser of Amount or Percentage of Payment
- Greater of Amount or Percentage of Payment
When you are finished, click Next. If you previously selected the Split Payment checkbox and you are using a custom payment split type, a Split Payments tab will appear. Otherwise, you will be taken to the Preview & Confirm tab.
Review
Once you have entered all the required fields, you will have a chance to review the payment information before finishing the process. If everything is correct, click Finish to log the payment.
Split payments
Split Payments allow you to process a single payment and distribute the funds across multiple linked accounts in LoanPro. Whether you are managing linked loan accounts or a parent-child line of credit (LOC) structure, split payments streamline multi-account servicing by eliminating the need to log separate transactions for each account.
Depending on your portfolio's setup, payments can be split automatically using pre-configured allocation rules or manually adjusted during payment entry.
Payment Split Types
Payment Split Types are configurable defaults that determine the logic for how split payments are allocated across linked accounts. Once created, they can be referenced for default-based or custom split amount allocations.
1. Default-based Splitting: Payment amounts are automatically distributed based on your pre-configured settings.
2. Custom Splitting: Payment amounts are manually distributed by the user.
Note the following regarding payment Split Types:
- A configured payment Split Type is required before allocating split payment amounts. Without first configuring a Split Type, payments will only apply to the parent line of credit account.
- A Split Type configuration can be set up to allow default-based or custom allocation—but not both. However, you can create multiple payment Split Types within your environment, allowing you to have both a default-based and custom type.
- Split Types are used for both one-time payments and AutoPays.
Configure payment Split Types
To configure a default-based payment Split Type, navigate to Programs > select program > Transaction Properties > Split Payment Types.
Custom payment Split Types must be configured by LoanPro's team. The ability to create your own Split Types is coming in the future. For now, reach out to your LoanPro representative for help with this one-time setup process.
Split payments for loan accounts
When logging a payment for a loan account, you may elect to split the payment between linked loans. If your loan is linked to other accounts, an additional tab will appear when logging a payment, allowing you to split the payment amount between them.
In the Split Payments tab, you'll see a list of loans, including the loan you're logging the payment on and all the loans linked to it. You can enter any amount to go toward each loan—a running tally will display beneath.
You can also choose how the convenience fee should be charged to each loan if the payment method is a bank card or ACH transaction. The base loan refers to the loan you are actively logging a payment on. The convenience fee options include five choices.
| Convenience Fee Option | How It Works |
|---|---|
| Charge the convenience fee on this loan (base loan) ONLY. | This charges the convenience fee that was entered in the Payment Profile Information section to the current loan only, resulting in the base loan having a fee but not the linked loans. |
| Charge the convenience fee on this loan (base loan) and EACH loan this payment is split across. | This charges the convenience fee that was entered in the Payment Profile Information section to each loan that the split payment applies to, resulting in every loan being charged the same fee. |
| Pull and charge the default convenience fee from EACH loan across which the payment is split. | This pulls the default convenience fee amount from each loan that the split payment applies to and charges that amount on for the respective loans. This may result in each loan being charged a different convenience fee. |
| Waive the convenience fee on this loan (base loan) ONLY. | The base loan will not have a convenience fee, but the linked loans will be charged their default convenience fee. |
| Waive the convenience fee from on this loan (base loan) and EACH loan this payment is split across. | No convenience fees are logged on the base loan or any of the linked loans. |
Once you have entered the amounts as they should apply to each loan (do not enter anything if the whole payment will apply to the current loan only), click Next again. This will take you to the Preview & Confirm tab.
Split payments for line of credit accounts
When executing a split payment on a line of credit (LOC) account, you can process a single payment at the parent level and distribute it across both the parent and any linked child accounts—loans and LOCs. Follow these steps to split a payment:
1. *Select the Split Payment checkbox located below the Payment Type field.
2. In the Log Payment tab, define the amount that should be allocated toward each account. The calculated total will automatically display underneath.
LoanPro also supports custom payment waterfall applications for specialized distribution rules.
*The Split Payment checkbox will only appear if an account has linked accounts.
How manual payments are processed
After submitting a payment, LMS handles payment processing—if required. Payment processing follows this flow:
1. LMS sends the payment request to Secure Payments, which forwards the request and the borrower's payment profile to your chosen processor.
2. The processor moves the funds from the borrower’s account to your bank account.
3. When a payment succeeds or fails, the processor sends an update back to Secure Payments and LMS. In both systems, you can review the payment in the borrower's payment history.
4. LMS automatically updates the loan's calculations during daily maintenance.
In the event that a payment fails or needs to be reversed, we recommend contacting the payment processor directly.