NetLoan — Set Up a Dutch Line of Credit
Overview
This article covers how to configure a Dutch Line of Credit in NetLoan — a Line of Credit structure where interest is calculated on the full credit limit amount rather than just the amount drawn. Use this setup when a lender charges interest on the total committed credit, regardless of the outstanding balance. The key configuration is the Interest Calculation Basis field on the Loan Type record, which controls how the interest calculation basis is determined.
Prerequisites
- The Line of Credit feature must be enabled on the NetLoan Global Settings record.
- A Loan Type must exist or be created. See NetLoan — Loan Type Configuration.
- A NetSuite role with edit access to the Loan Type record.
Setup Options
Navigation
- Top navigation: NetLoan > NetLoan Setup > Loan Types
Global Settings
Navigate to the Global Settings record and locate the System Features subtab.
| Field Name | Field Type | Description | Dependencies | Options / Example | Field ID |
|---|---|---|---|---|---|
| Line of Credit | Checkbox | Enables the Line of Credit feature globally. Must be checked before Line of Credit fields appear on the Loan Type and Loan records. | None | Checked / Unchecked | custrecord_da_gbl_line_of_credit |
Loan Type
| Field Name | Field Type | Description | Dependencies | Options / Example | Field ID |
|---|---|---|---|---|---|
| Credit Limit Type | List/Record | Determines whether the line of credit is revolving or non-revolving. Must be set before updating the Interest Calculation Basis field. | Line of Credit global setting must be enabled. | Revolving — available credit replenishes as payments are made; Non-Revolving — available credit does not replenish with payments. | custrecord_da_type_credit_limit_type |
| Interest Calculation Basis | Select | The basis (e.g. loan balance) which the monthly interest rate is applied to when calculating month end interest. Setting this to Credit Limit enables Dutch Line of Credit behavior. | Credit Limit Type must be set to Revolving or Non-Revolving | Credit Limit — interest calculates on the full credit limit amount; Average Daily Balance — interest calculates on the drawn balance only (standard Line of Credit behavior). | custrecord_da_type_interest_basis |
Use Case Specific Setup
Use Case: Dutch Line of Credit (Interest on Full Credit Limit)
For lenders that charge interest on the total committed credit limit, regardless of the drawn balance:
| Field | Setting | Notes |
|---|---|---|
| Line of Credit (Global Settings) | Checked | Must be enabled before any Line of Credit fields are available. |
| Credit Limit Type (Loan Type) | Revolving or Non-Revolving | Choose based on whether payments replenish available credit. |
| Interest Calculation Basis (Loan Type) | Credit Limit | Causes interest to calculate on the full credit limit, not the drawn balance. |
| Credit Limit (Loan Record) | e.g., $100,000 | Set to the total committed line of credit amount. |
Example: A lender extends a $100,000 line of credit. The borrower draws $75,000. With Interest Calculation Basis set to Credit Limit, interest accrues on the full $100,000 — not just the $75,000 drawn.
Use Case: Standard Line of Credit (Interest on Drawn Balance Only)
For lenders that charge interest only on the amount actually drawn:
| Field | Setting | Notes |
|---|---|---|
| Line of Credit (Global Settings) | Checked | Must be enabled before any Line of Credit fields are available. |
| Credit Limit Type (Loan Type) | Revolving or Non-Revolving | Choose based on whether payments replenish available credit. |
| Interest Calculation Basis (Loan Type) | Average Daily Balance | Causes interest to calculate on the drawn balance only. |
| Credit Limit (Loan Record) | e.g., $100,000 | Set to the total committed line of credit amount. |
Example: A lender extends a $100,000 line of credit. The borrower draws $75,000. With Interest Calculation Basis set to Average Daily Balance, interest accrues only on the $75,000 drawn.
