Lending Cloud
Level 1 Agriculture Training Guide
Module 4 Loan Menu > Debt Schedule
NOTE
: Screen captures displayed may not always match each individual financial institution.System configurations and user roles will affect functionality and appearance.
2. When a customer record is open, an expanded menu bar is displayed: 1. Open a customer record using:
File > choose an option from the drop list
or
Locator > use any of the search options on thepage -
Lending Cloud
Level 1 Agriculture Training Guide
Module 4 Loan Menu > Debt Schedule
Loan Menu > Debt Schedule
Debt Schedule allows you to enter loan information once and then use that loan information in the following areas of Lending Cloud:
Balance Sheet
Income/Expense
Repayment (DSCR)
Collateral Analysis
Credit Actions forms
Select Loans > Create New Debt Schedule or click on an existing Debt Schedule.
1. Enter a Loan Balance Date. 2. Enter a Description.
3. Select the Balance Sheet to associate with this Debt Schedule. 4. Select the Income/Expense to
associate with this Debt Schedule. 5. Click Save.
NOTE: It is recommended you
attach both a Balance Sheet and an
Lending Cloud
Level 1 Agriculture Training Guide
Module 4 Loan Menu > Debt Schedule
Your System Administrator determines the Debt Schedule fields to be displayed. Below are the most common selections:
New/Existing/Related – select the appropriate loan type. Loan # - enter the financial institution’s defined loan number.
Creditor – select from the drop list of available creditors or create a new creditor. o Create a New Creditor
Select the Creditor link.
Enter the Name, Abrv, Type, ID, City, and State. Select Add.
Select Save & Back. Loan Type
o Current - typically an operating loan or debt that matures in less than one year.
o Intermediate – generally a debt that matures between one and ten years (for example farm equipment or breeding stock).
o Long Term (L.T.) – generally a debt that matures in more than ten years (for example land or buildings).
Principal Balance - enter current principal balance for the loan. Interest Rate – enter the interest rate percentage for the loan.
Accrued Interest – accumulated interest amount on the principal loan. o NOTE: this field is inactive on a new loan.
Payment Method – if the Loan Type selected is Intermediate or Long Term, these options will be available.
o Equal – loan payment amounts (including principal and interest) remain constant for the life of the loan. If the payment method in Lending Cloud is set to Equal and the
payment amount is provided, Interest Payment/Year and Principal Payment/Year will be calculated.
o Fixed Principal – loan payments that consist of a constant principal amount and a diminishing interest amount for the life of the loan. If the payment amount in Lending Cloud is set to Fixed and the principal payment per year is provided, the payment amount will be calculated.
o Open – allows the flexibility to control the principal and interest payments when the equal payment and/or fixed principal processes do not apply. If the payment amount in Lending Cloud is set to Open and the principal per year and interest payment per year are provided, the Payment Amount will be calculated.
o Re-Amortize (ReAm) – process used to project a different payment schedule than originally set up for the loan.
Lending Cloud
Level 1 Agriculture Training Guide
Module 4 Loan Menu > Debt Schedule
o Refinance (Refi) – paying off an old loan with a new loan.
NOTE: with this payment method, the principal and interest for this loan does not flow to the Balance Sheet; however, the loan pay-off amount will flow to the Pro Forma balance.
Payment Method – if the Loan Type selected is Current, these options will be available. o Revolving LOC – advancing payment or paying down loans based upon monthly cash
flow allocations.
o Non-Revolving LOC – advancing payment or paying down loans at a specified point in time.
o Refinance (Refi) – paying off an old loan with a new loan.
NOTE: with this payment method, the principal and interest for this loan does not flow to the Balance Sheet; however, the loan pay-off amount will flow to the Pro Forma balance.
Payment Amount - available only when a customer is set to the Total Annual Payment or Total Annual Payment-Operating and Term Detail. The principal and interest amount paid on the loan, either annually or based upon the number of payments per year. This payment method does not allow debt information to flow to the Balance Sheet.
o NOTE: this payment method is available for every Loan Type. Payments/Year – enter the number of payments made annually.
Interest Payment/Year – this may be calculated per Payment Method selected or entered manually.
Principal Payment/Year – this may be calculated per Payment Method selected or entered manually.
To I/E – check to send loan payment information to the Income/Expense statement selected. To BS – check to send loan information to the Balance Sheet selected.
To CR – check to send loan information to the Credit Relationship tab of the Debt Schedule. o The Credit Relationship tab is a quick reference for showing the new and existing loans
that belong to your institution, as well as exposure to other creditors (if data is entered).
Credit Relationship will show the overall exposure of the borrower without affecting
the Balance Sheet.
Lending Cloud
Level 1 Agriculture Training Guide
Module 4 Loan Menu > Debt Schedule
Detail view includes tabs for Loan Detail, Payment Information, Loan Analysis,
Compliance, and FSA Guarantee. Click the minus sign (-) to return to summary view.
Loan Detail
Loan Purpose Code – select appropriate code from the drop list to identify the purpose of the loan from a list of codes set up by your System Administrator.
o NOTE: within Data Manager and the Risk Dashboard, users can filter data based on the loan purpose category and code.
Collateral Code – select a code from the drop list to identify the collateral code from a list of codes set up by your System Administrator.
o Present Commitment – enter amount that pertains to an operating loan or line of credit. Amount defaults to the current principal balance for existing loans or the requested amount for new loans.
o Increase-Decrease – enter value (
+
or-
) to affect the Proposed Commitment.o Proposed Commitment – will calculate from the Present default to value in the Present Commitment when Open is selected.
Calculated is the default selection and when Calculated is selected, Present
Commitment, Increase-Decrease, and Proposed
Lending Cloud
Level 1 Agriculture Training Guide
Module 4 Loan Menu > Debt Schedule
To Collateral Analysis – select from the drop list:
o Principal Balance o Present Commitment o Proposed Commitment
Fixed or Variable – select from the drop list:
o Fixed o Variable
o Other (enter additional information in the text entry box to the right of the drop list) Term (in Months) – enter a specific number of months between origination date and maturity
date.
Amortization (in Months) – enter the number of months over which the loan is being, or is to be, amortized.
Purpose of Loan – enter unique description of the loan.
Pro Forma Amount – to enter or change a pro forma amount, select Open and enter the pro forma interest amounts for the loan (principal can’t be edited).
o NOTE: Businesses are often asked to submit pro forma statements when making a loan application. Pro forma financial statements show income and expenses that may be recognized in the future.
o For example – a loan request for financing an inventory purchase would typically include a pro forma statement that shows the impact of the amount borrowed on current assets and liabilities using the most recent Balance Sheet. Type of Loan – open text field (default maximum of 30 characters).
Origination Date – enter calendar date the loan was made or approved. Original Amount – enter the loan amount at the time of origination Maturity Date – enter the calendar date the loan matures.
Past Due Amount – enter amount currently past due on this loan.
CCC Loan? – if Commodity Credit Corporation (CCC) Loan check box is selected, aslo select either the Cash or the Loan radio button.
SBA? – select checkbox for Small Business Association (SBA) loan. Class Code – Enter the code Number or description for the loan. Saleable – select checkbox to indicate the loan can be resold. Adjusted Liabilities
o BS Column – select Value or Adj. Value from the drop list. o Input – Calculated is the default selection.
When Open is selected, Principal Balance, Accrued Interest, and Principal
Payment/Yr. can be edited.
Open – when Open is selected Present
Commitment, Increase-Decrease, and
Lending Cloud
Level 1 Agriculture Training Guide
Module 4 Loan Menu > Debt Schedule
Payment Information
Identify payment information related to a debt on the Payment Information tab.
Payment Frequency – enter frequency at which payments are to occur. Payment Type - open text field (default maximum of 30 characters).
Pre-Payment Penalty – enter amount or percent of the penalty to assess if loan is paid off early.
Fees – enter fees associated with this loan.
Index – enter interest rate index used to calculate interest rate.
Ceiling – enter maximum interest rate possible for a variable interest rate. Floor – enter lowest interest rate possible for a variable interest rate.
Adjustment Frequency – enter frequency at which interest rate changes or resets.
Spread – enter the amount above or below interest rate index to establish interest rate to be charged.
Last Payment Date – enter calendar date of when the previous loan payment was made. Payment Date – enter calendar date of when loan payment is due.
Loan Analysis
Lending Cloud
Level 1 Agriculture Training Guide
Module 4 Loan Menu > Debt Schedule
Current Risk Rating – enter current risk rating. Proposed Risk Rating – enter proposed risk rating.
Credit Bureau Score – enter score obtained from a consumer credit bureau. Credit Classification – enter per your institution’s classifications.
Business Credit Bureau Score – enter score obtained from a business credit bureau. Fair Isaac Score – FICO Small Business Scoring Services (SBSS).
o NOTE: FICO SBSS is the approved scoring tool used by several government agencies and recognized as the premier predictor of creditworthiness. Tightly integrated with the Lending Cloud software, FICO SBSS provides objective credit scores enabling quick decisions to be made confidently.
Low Credit Amount – enter the low credit amount. High Credit Amount – enter the high credit amount.
Primary Source of Repayment – enter primary source of repayment.
Secondary Source of Repayment – enter secondary source of repayment as applicable. Tertiary Source of Repayment – enter tertiary source of repayment as applicable.
Compliance
Capture compliance-related information to meet your institution’s tracking and reporting needs.
Census Tract – enter geographic region defined for census purposes.
CRA – select Yes or No from the drop list when Community Reinvestment Act (CRA) applies to the loan.
o NOTE: CRA is a federal law requiring periodic review of federally insured lenders to help meet the needs of borrowers, including low and moderate income neighborhoods. HMDA – select Yes or No from the drop list when Home Mortgage Disclosure Act (HMDA)
reporting applies to the loan.
o NOTE: HMDA regulations require mortgage lenders to report specific information about commercial loan applications for residential structures.
FSA Guarantee
Lending Cloud
Level 1 Agriculture Training Guide
Module 4 Loan Menu > Debt Schedule
Existing Debt Schedules
Active Debt Schedule Summary
Principal Balance – total of all loans per Debt Schedule.
Payment Amount – total annual payment amount (per Total Annual Payment column below plus the Current loan principal balance).
Total Debt column displays the results of adding together the loans entered on the Our Debt (summary of borrower’s debt from your financial institution) and Other Debt (summary of borrower’s debt from other financial institutions) tabs.
To I/E for Debt Service (DSCR) – summary of borrower’s debt from designated Income/Expense records per the Debt Schedule setup selections.
To Balance Sheet – summary of loan amounts sent to Balance Sheet per the Debt Schedule setup selections.
Credit Relationship – summary of loan amounts sent to the CR tab for Credit Action.
Active Debt Schedule Loan Details
Our Debt - see loan balances from your institution in Existing, New and Related sections. Other Debt – see loan balances from other institutions in Existing, New and Related
sections.
Lending Cloud
Level 1 Agriculture Training Guide
Module 4 Loan Menu > Debt Schedule
Credit Relationship – provides a summary of the Debt Schedule totals that you want to show in a Credit Action.
TIP: You must expand the loan detail on the Credit Relationship tab for details of the loan to
Lending Cloud
Level 1 Agriculture Training Guide
Module 4 Loan Menu > Debt Schedule
To configure the layout of the Credit Relationship: o Select the
↕
next to the row to move.o Drag and drop the selected row to the desired location within the section.
o After clicking Save & Stay, the results are displayed in Credit Action forms, such as Credit Presentations and Decisioning models, and in reports.
Lending Cloud
Level 1 Agriculture Training Guide
Module 4 Loan Menu > Debt Schedule
Additional Information
To delete a loan, select the checkbox next to the appropriate record and click on the red
X
.To makes changes to an existing Debt Schedule click the sprocket and select from the drop list:
Edit – select to modify the Debt Schedule Setup Delete – select OK or Cancel in the “Are You Sure You
Want to Delete Record(s)?” message box to delete the selected record.
Duplicate – select to copy the Debt Schedule record into the existing debt schedule record. The new schedule is labeled “duplicate”.
Unlock – select OK or Cancel in the “Are You Sure You Want to Unlock This Record?” message box to make the record accessible to other users.
Lock – select OK or Cancel in the “Are You Sure You Want to Lock This Record?” message box to make the record inaccessible to other users.
Track – select to view the list of whom locked/unlocked the record.
Each Debt Schedule created must have a unique Balance Sheet and
Income/Expense. If creating
multiple Debt Schedules for the same period, duplicate the Balance Sheet and Income/Expense to be able to attach to the new Debt Schedule.
For example: FY Sample 1 Debt
Schedule B would attach Balance Sheet 12/31/2101 FYE Sample 1 Dup and Income/Expense 1/1/2101-12/31/2101 FY Sample 1 Dup.
Lending Cloud
Level 1 Agriculture Training Guide
Module 4 Loan Menu > Debt Schedule
Debt Service Coverage Ratio (DSCR)
NOTE: Your System Administrator will create the Debt Coverage Ratio Model(s) for your institution.
To select a Debt Coverage Ratio
Model:
Income/Expense > Chart of Accounts
If your institution has multiple DSCR models, select the Debt Coverage Ratio Model from the drop list.
Lending Cloud
Level 1 Agriculture Training Guide
Module 4 Loan Menu > Debt Schedule
Income/Expense Trends > Repayment Capacity will display the Debt Coverage Ratio information per the model selected.