NetLoan - Enter a New Loan (General)
NAVIGATE TO THE LOAN RECORD FORM
Use Case: These steps can be followed to review and obtain information on an existing loan or as a starting point to enter a new fixed installment loan.
Prerequisite: All setup & configuration activities need to be complete.
Navigation
- In order to review an existing loan, you can navigate to the Loan Register (NetLoan > Loan Management > Loan Register) in the menu ribbon to search for or select an existing loan record.
- Otherwise, to create a new loan record, select NetLoan > Loan Management > New Loan
STEP BY STEP PROCESS
- A blank, new NetLoan Loan Form appears, from which you can create a new loan
- Manually update the Primary Information form section and fields as indicated below
Field Name | Required | Description | Example |
Loan ID | Auto-generated | A unique ID for the loan and the primary identifier within NetLoan for the loan record. | LN0037 |
Loan Name | Yes | Free-form input for NetLoan users. This can be used for the lender’s contract # or other identifying information for the loan. | 17 Cherry Tree Lane, London KY |
Loan Type | Yes | Assign the loan type from the drop-down list, which are defined as part of the NetLoan settings. | Real Estate |
| Borrower | Yes | The borrower for the loan. This is the borrower to whom loan invoices will be sent. Note that this field is only populated for loans with "Lender" entity type Loan Types. | Aarron Abbott |
| Lender | Yes | The lender for the loan. This is the lender to whom loan bills will be paid. Note that this field is only populated for loans with "Borrower" entity type Loan Types. | McGeever Properties |
Subsidiary | Yes | The subsidiary where the loan will reside. | Company, Inc. |
| Department | No | The department where the loan will reside. | Marketing |
| Class | No | The class where the loan will reside. | Service |
| Location | No | The location where the loan will reside. | US - West |
Currency | Yes | The contract currency for the loan, typically the currency in which payments will be made. This defaults to the lender’s primary currency. | US Dollar |
| Schedule Calculation Type | Yes |
If a default is set on the NetLoan Type, it will automatically populate the field when that type is selected on a loan record. | Calculate Payment |
Loan Notes | No | A text area field to include any relevant notes or loan-related information. | Contact Linda for details |
- Also update the Schedule Information section and fields as indicated below
| Field Name | Required | Description | Example |
|---|---|---|---|
Status | Yes |
| Commenced |
Origination Date | Yes | The date on which the lender makes the funds available to the borrower. NOTE: NetLoan uses a full month convention to generate schedules; i.e., mid-month dates will not result in partial month calculations. | 01-Jan-2019 |
Initial Payment Date | Yes | Input the date the first payment will be paid. Must be on or after the Origination Date. The "Initial Payment Calculation Type" setting on the "Loan Origination" tab of the "NetLoan Setup" page impacts when this field is automatically updated. | 01-Jan-2019 |
| Maturity Date | Calculated | The anticipated ending date of the loan, which is calculated (origination date + loan term). | 31-Dec-2021 |
Loan Term | Yes | The anticipated duration of the loan. The unit measure for this field depends on the "Loan Term Unit" setting selected on the NetLoan Type of this loan.
| 36 |
| Initial Loan Balance | Yes | Input the initial balance of the loan. This can include or exclude the down payment depending on the "Apply Down Payment to Loan Balance" setting selection on the "Loan Origination" tab of the "NetLoan Setup" page.
| $400,000 |
Initial Monthly Payment | Yes | Input the monthly payment for the loan. This will be calculated by the system if "Calculate Payment" is selected as the "Schedule Calculation Type". | $1,500.00 |
| Payment Day | Yes | The day of the month to book payments for the loan. The "Initial Payment Calculation Type" setting on the "Loan Origination" tab of the "NetLoan Setup" page impacts when this field is automatically updated. If a default is set on the NetLoan Type, it will automatically populate the field when that type is selected on a loan record. | 31st |
| Business Day Convention | Yes | Affects which days loan payments post (and therefore affects interest calculations) when the expected payment day falls on a weekend or a holiday.
A Business Day Calendar will need to be set up to inform the system of what holidays should be considered. | Unadjusted |
| Day Count Convention | Yes | The Day Count Convention determines how many days are assumed to be in each month and year for interest calculation.
| 30/360 |
| Annual Percentage Rate | Yes | Input the annual percentage rate on the loan up to 4 decimals. Additional decimals can be utilized when enabling the "Precision APR" setting on the "General" tab of the "NetLoan System Setup" page. | 5.2534% |
Down Payment | Yes | Input the down payment on the loan. | $8,000.00 |
Balloon Payment | Yes | Input the balloon payment amount on the loan (to be paid in the final period), if it differs from the monthly payment. | $1,000.00 |
| Loan Origination Fees for Capitalization | Yes | Input the net of loan origination fees minus direct loan origination costs for the loan. | $8,000.00 |
| Loan Discount / Premium | No | Input the discount or premium on the loan that should be held on the balance sheet and amortized over the term of the loan. The amortization method is determined by the selection in the "Fee Amortization Method" field on the loan type for this loan. This feature is only available when the "Discount Premium Amortization" feature is selected on the "System Features" tab of the "NetLoan System Setup" page. |
- Fill out any of the additional sections on the Accounting tab as needed:
- Variable Rate Information: This section is used for loans that track variable rate indices and need to be updated automatically.
The NetLoan Rate Index tables will need to be setup prior to entering a variable rate loan and need to be managed on an ongoing basis to be effective. Rates can also be uploaded via csv import.Field Name Required Description Example Variable Rate Index No Select the NetLoan Rate Index that this loan will track. SOFR Variable Rate Spread No Enter the the spread that should be applied to the index rates for this loan. If the index rate is 6% and your spread is entered as 2 the resulting rate that will be applied to the loan would be 8%. 2 Variable Rate Loan No Check the box if this loan is a variable rate loan. This can be used as an identifying criteria for those loans that track a rate index. This checkbox is purely informational. ✔ - Payment Timing: This section is used to enter payment and billing information that affects the schedule calculations and how NetLoan automatically generates bills when the "Automated Billing" feature is enabled on the "System Features" tab of the "NetLoan System Setup" page.
Field Name Required Description Example Default Payment Terms No Select a term option determines the terms used to set the due date for all NetLoan generated bills when "Automated Billing" is enabled.
The terms will need to be set up in your NetSuite instance prior to being available in this dropdown field.
If a default is set on the NetLoan Type, it will automatically populate the field when that type is selected on a loan record.Net 15 Default Payment Time of Day No Select a time of day that determines whether interest on the day of payment is included or excluded from the payment. - Beginning of Day: Indicates that the payment is applied to the loan prior to interest calculation for that day.
- End of Day: Indicates that the payment is applied to the loan after interest is calculated for that day.
This is defaulted in from the option selected on NetLoan Type when a type is selected on the loan record.
Beginning of Day Billing Day No Select the day of the month that all NetLoan auto-generated bills should be created when "Automated Billing" is enabled.
If a default is set on the NetLoan Type, it will automatically populate the field when that type is selected on a loan record.Business Day Calendar No Select a Business Day Calendar when a Business Day Convention other than "Unajusted" was selected. This informs the system of what holidays should be considered.
A Business Day Calendar will need to be set up prior to being available in this dropdown field.
If a default is set on the NetLoan Type, it will automatically populate the field when that type is selected on a loan record. - Interest Timing:
- Variable Rate Information: This section is used for loans that track variable rate indices and need to be updated automatically.
- Click Save to establish the loan and generate a Loan ID
- The completed loan record header details may appear as follows