Glossary
This section describes the alphabetical list of terms with definitions. These include only terms referred to or used in this User Guide.
Name of the Term | Definition |
|---|---|
| Accounts | Accounts are your organization's customers, partners and competitors. Each Account stores information such as name, address, phone numbers, loan details, contacts, investment orders and consolidated loan payments. |
| Account Statement | Account statement is a periodic summary of your account activity with details such as the Lending account, Loan amount, Loan product, Interest rate, Term and the Balance amount. It also contains the different transaction dates, the transaction amount, the Interest, the Principal and the charges applied. |
| Accounting Rules | Accounting rules are GAAP (Generally Accepted Accounting Principles) used globally. This is used to prepare, present and report financial statements for a wide variety of publicly traded, privately held companies and government authorities, with the FASB (Financial Accounting Standards Board) establishing rules for public and private companies and non-profit organizations. These rules are regenerated for the purpose of trouble-shooting. |
| Accrual Start Basis | Accrual Start Basis is used to arrive at the Accrual Start Date of a Lending product, after a successful Loan Disbursal Transaction. |
| Accrual Start Date | Accrual Start Date is the date from which the Interest accrual begins. |
| Accrual Stop Indicator | Accrual Stop Indicator indicates if the Interest accrual has to be stopped. |
| ACH | ACH (Automated Clearing House) is a nationwide EFT (Electronic Funds Transfer) system that provides for the inter-bank clearing of credit and debit transactions and for the exchange of information among participating financial institutions. It is a batch processing system in which financial institutions accumulate ACH transactions throughout the day for later batch processing. ACH Network transactions are transmitted electronically. This leads to faster processing time and cost savings. |
| ACH Parameters | ACH Parameters are the parameters required to configure ACH for your organization. |
| ACH Recurring Transaction | ACH Recurring Transaction is based on the ACH Frequency (Weekly, Monthly to name a few), the system will automatically post the regular installment to the drawer’s account and the installment will be debited from that account. |
| Active- Bad Standing | Active- Bad Standing indicates that there is an amount that is overdue on this loan. |
| Aging | Aging is the process of inquiring a company's accounts receivables based on the duration of the outstanding individual invoices. |
| Amortization Schedule | Amortization Schedule is a table which has details of each periodic payment on a loan |
| Amortized Fees | Amortized Fees are fees that can be distributed over a period of time. If the Payment Frequency on the related Loan Product is specified as Monthly, the Amortized Fees would be charged on a monthly basis. Each Amortized bill has a part of the Pre-Paid Fees, if the Pre-Paid Fee is 10 and the Term is 5, the Amortization Fee would be 2. |
| Amount calculated as % of disbursement amount | Amount calculated as % of disbursement amount is a type of Fee Calculation Method where the fee can be defined as a percentage of disbursement amount. |
| Auto Compute Payment Amount | Auto Compute Payment Amount means the system will calculate the payment amount based on the outstanding Principal, current Interest rate and the remaining loan terms. |
| Amount for Disbursal Remaining | Amount for Disbursal Remaining is the difference between the amount for disbursal and the amount disbursed. For a fully disbursed loan, the Amountfor Disbursal Remaining is 0. |
| Amount to Current | Amount to Current is the amount that needs to be paid, to change the status of the loan from Active- Bad standing to Active- Good standing. |
| Approved | Approved is a status on the Lending Account which indicates that the loan has been sanctioned |
| Approval Process | An Approval Process is an automated process your organization can use to approve the records in CL Loan. |
| Auth Token | Twilio uses two credentials to determine the account from which an API request is coming from. The Account SID, which acts as the username, and the Auth Token which acts as the password. |
| Automatic Spread | Automatic Spread is a type of payment where the payment amount is spread across P, I and F based on the spread order defined at the lending product level. |
| Balloon Payment | Balloon Payment is a heavy payment at the end of a loan repayment schedule. |
Broker | Broker serves as a trusted agent or an intermediary between a buyer and seller in commercial negotiations or transactions, in return for a commission. |
| Business Accounts | Business Accounts represents the companies with which your organization does business. |
| Business Activities | Business Activities are the economic activities carried out by a firm during the course of business. These are ongoing activities and are aimed at creating value for the shareholders. The business activities can include operations, marketing or administration, to name a few. |
| Buy Rate | Buy Rate is the rate at which you buy the loan from the broker. This means that your profit is the Buy Rate and the remaining goes to the Broker. |
| Change Payment Amount | Change payment amount feature allows you to change your loan's repayment amount and the maturity date. |
| Charge Off | Charge off is a debt that has been determined as uncollectible by the lender, usually after the borrower has become delinquent. |
| Chart of Accounts | Chart of Accounts is a listing of the names of the accounts that a company has identified and made available for recording transactions in its General Ledger |
| CL Contract | CL Contract is a contract between borrowers and lenders governed by the mutual promises made by each party involved. Here, the lender usually a bank or a financial institution, sets out the terms and conditions under which a loan or a contract is made available to a borrower. |
| Closed- Obligations Met | Closed- Obligations Met is a status on the Lending Account which indicates that the loan has been paid off |
| Closed- Rescheduled | Closed- Rescheduled is a status on the Lending Account which indicates that the loan has been rescheduled |
| Closed - Written Off | Closed- Written Off is a status on the Lending Account which indicates that the loan has been written off |
| ConsolidatedLoanPayment | ConsolidatedLoanPayment involves taking out one loan to pay off another. It is used to make a loan repayment transaction across multiple loans. |
| Commission Plan | Commission Plan is a set up where you can define the amount of commission to be given to a Broker, thus acting as a template for the commission. |
| Contact | Contact is someone you have a business relationship with, someone you know. |
| Credit Limit | Credit limit is the maximum advance amount that can be given to the customer at any point of time. |
| Credit Pull | Credit Pull is the process of extracting credit history from a potential client through credit reporting agencies such as Equifax, Trans Union and Experian. |
| Current Due Day | Current Due Day is the day on which the loan payment is due |
| Custom Settings | Custom Setting is useful when you have to store information that will be accessed from the Apex code, quite often. |
| Custom Report | Custom Report types allow you to build a framework in the Report wizard. Here, users can create and customize reports. |
| DataImport | DataImport is a feature which allows processing of records for various payment transaction interfaces such as Consolidated Loan Payment Transaction Interface and Loan Payment Transaction Interface |
| Days Past Due | Days Past Due is the number of days for which there has been an overdue on the lending account. |
| Default Commission Hierarchy | Default Commission Hierarchy provides a hierarchy for the Commission Plan. |
| Delinquent Amount | Delinquent Amount is the total overdue amount on the lending account. |
| Delinquency Payment Plan | Delinquency payment plan is when an already delinquent borrower promises to pay certain amount (For example, 50% of the reinstatement amount) and when you receive it, you keep your end of the promise by spreading the remaining reinstatement amount over remainder of the loan (the maturity date remains the same) or by attaching the remaining reinstatement amount to the end of the term (thus moving the maturity date). |
| Delinquency Grace Days | Delinquency Grace Days are the number of days for which the system will wait before categorizing the account as a delinquent account. |
Declining Balance | Declining Balance is based on the outstanding loan balance. It is the balance of the money that remains in the borrower’s hands as the loan is repaid during the loan term. As the borrower repays installments, the remaining loan balance declines over time. The Interest is then charged only on the loan amount that the borrower still holds. |
| Delinquent Payment | Delinquent Payment is the payment that is not made by the specified due date. This can incur hefty fees and interest charges, depending on the type of account it is associated with. This can also be seen as a blemish on your credit report; lowering your credit score and making it less likely for your loans to be approved in the future. |
| Draw Period Billing Method | Draw Period Billing Method is the billing method used to bill the customer when the customer is in the draw period. (The total amount is disbursed over a period of time and this is called as Draw Period). |
| Draw Period End Date | Draw Period End Date is the last day of the Draw period. No further funding will take place after this date. |
| Draw Term | Draw Term is the period during which the amount can be disbursed to the customer. |
| EOD (End of the Day) | EOD process begins after all the transactions for the day have been completed. This typically involves checking for loan maturity and Month end Interest accruals. |
| EOY (End of the Year) | EOY process involves closing the current Financial Year. This allows the financial institutions to complete the annual audit and make any adjustments that the accountant may suggest. |
| End User Languages | End User Languages are useful if the organization is multilingual or if your partners speak languages other than your company's default language. |
| Equifax Identifier | Equifax Identifier contains the unique identification number assigned by Equifax, a consumer reporting agency. |
| Experian Identifier | Experian Identifier contains the unique identification number assigned by Experian, a consumer reporting agency. |
Fee Income | Fee Income is the fee collected by financial institutions from account related charges to customers. The charges that generate Fee Income are non-sufficient funds fees, overdraft charges, late fees, wire transfer fees. |
| Fee Set | Fee Set is a combination of one of more Fees. |
| Fees Remaining | Fees Remaining is the sum of unpaid charges on the loan |
| Fiscal Year | Fiscal Year is a period that a company or the government uses for accounting purposes and for preparing financial statements. The fiscal year need not necessarily be the same as a calendar year. |
| FY (Fiscal Year) Closing Year Balance | FY Closing Year Balance is the remaining amount in an account within your chart of accounts, positive or negative, at the end of an accounting period or at the end of a year. This will be carried forward to the next accounting period. |
| Flat Rate Calculation Method | Flat Rate Calculation Method is a method in which the Interest is computed on the original amount every month. |
| Flexible Repayment | Flexible Repaymentis a method in which the Interest is calculated on the reduced Principal balance, with the change in Interest rate. |
| Floating Rate Index | Floating Rate Index is the interest rate that changes on a periodic basis |
| Funding in Tranches | Funding in Tranches is the disbursal of the total loan amount to the borrower in multiple disbursal transactions at different stages. These disbursal stages can vary depending on the loan product and other factors. |
General Ledger Account | General Ledger Account maintains an organization's accounting records. It includes accounts such as current assets, fixed assets, liabilities, revenue-expense items, gains and losses. |
| Interest Amortization | Interest Amortization allows you to book the unearned interest income at the end of the month, once the first payment date on the lending account is passed. The purpose of Interest Amortization is to ensure that the profit and loss statement follows accrual based income accounting, specifically for the end of month reporting. |
| Interest Only Period | Interest Only Period is the period during which only Interest is calculated. |
| Interest Remaining | Interest Remaining is the unpaid Interest till the last accrual date |
| Late Fee | Late Fee is a fee charged to the customer for late payments (if any) |
| Last Accrual Date | Last Accrual Date is the date when the Interest was computed and posted on the corresponding loan account. |
| Last Transaction Time stamp | Last Transaction Time Stamp contains the details of the date and time of the last transaction. |
| Loan Disbursal Transaction Update Job | Loan Disbursal Transaction Update Job creates Journal Entries corresponding to the loans that are disbursed. |
| Loan Extension | Loan extension or payment deferral helps to expand the duration of the installment due dates. This can be done at any point of time after the loan disbursement. This is typically carried out when a borrower is in Active-good standing, but wants to skip one or more future payments. |
| Loan Pay Off | Loan payoff refers to complete repayment of a loan. Your loan payoff amount includes the payment of any Interest that you owe and it may also include other fees you have incurred, but not paid. |
| Loan Payment Transaction Reversal Update Job | Loan Payment Transaction Reversal Update Job creates Journal Entries corresponding to the payment reversals |
| Loan Purpose | Loan Purpose is the underlying reason for the borrower to apply for a loan. |
| Loan Write Off | Loan write off refers to an investment for which a ROI (Return on Investment) is highly unlikely or impossible. |
| Loan Write Off Update Job | Loan Write Off Update Job creates Journal Entries corresponding to the lending accounts which have been written off |
| Late Charge Grace Days | Late Charge Grace Days is the number of days the system waits before applying late charge on the loan. |
| Last Disbursal Amount | Last Disbursal Amount is the amount of the most recent disbursal transaction. |
| Last Due Date | Last Due Date is the date when the latest bill was generated. |
| Lending Product | Lending Product acts a template from which the lending account receives default values |
| Line of Credit | Line of Credit is a credit arrangement in which a financial institution agrees to lend money to a customer up to a specified limit. Generally, line of credit is arranged before the funds are actually required, thus providing flexibility to the customer. It ensures the ability to meet short-term cash needs when the need arises. |
| LIFO | LIFO (Last In First Out) Methodology is to be followed while reversing a loan repayment transaction, where you must you must reverse all the payments one by one, starting from the latest payment. |
| Maturity Date | Maturity Date is the final payment date of a loan, at which point all the interest remaining and the principal is due for payment. |
| Mark Suspended After Days | Mark Suspended After Days are the number of days overdue for payment, after which a loan account is suspended. |
| Maximum Draw Amount | Maximum Draw Amount is the maximum amount that can be disbursed to the customer at once. |
| Maximum Financed Amount | Maximum Financed Amount is the maximum credit limit to be disbursed for this lending product. |
| Minimum Financed Amount | Minimum Financed Amount is the minimum credit limit to be disbursed for the lending product of the record type, Line of Credit. |
| Minimum Draw Amount | Minimum Draw Amount is the minimum advance amount which can be drawn by the customer. |
| Metro2 | Metro2 format is the current standard electronic data reporting format for credit. Its purpose is to assist banks, credit card companies, retailers in correcting and updating consumer credit history information. |
| Modal Window | Modal windows are windows that float above a page. It retains your focus by drawing attention to vital pieces of information. |
| NACHA | NACHA is a non-profit membership association charged with overseeing the ACH (Automated Clearing House) system. This operates the largest electronic payment network in the world. |
| Next Due Generation Date | Next Due Generation Date is the date on which the next bill would be generated. |
| Oldest Unpaid Due Date | Oldest Unpaid Due Date is the date of the oldest bill for which Payment Satisfied flag is unchecked. It remains the same when a bill is generated. However, it gets updated when a bill is fully paid. |
| One Time ACH | One Time ACH transaction is a transaction in which for a single selected date, the system will automatically post the installment to the drawer’s account and the installment will be debited from that account. |
| Partial Application | Partial Application is a status on the Lending Account which indicates that the loan application is in process |
| Pay-Off Fees | Pay-Off Fees is a fee charged to the customer for paying off the loan early. |
| Payment Frequency | This decides the frequency of installments. It can be Weekly, Bi-weekly or Monthly. |
| Payment Amount | Payment Amount is the loan amount that needs to be paid. |
| Payment Tolerance | Payment tolerance is the permissible amount of tolerance provided by a financial institution to clear the bills. You are expected to satisfy your bills, but there are cases where you may request the financial institution if you could pay just 70% of your regular payment for the next 3 months and the remaining 30% for the three months that you did not pay will be spread over a period of time. |
| Pending Approval | Pending Approval is a status on the Lending Account which indicates that the loan is pending for the approval. |
| Periodic Fees | Periodic fees are posted to the customer's lending accounts on a routine basis (typically, weekly, monthly, bi-weekly, semi-monthly, monthly, bi-monthly, quarterly, semi-annually, annually or on a single payment basis). Also, you can apply this fee for specific dates. |
| Permission Set | Permission Set is a collection of permissions and settings that gives users the access to various tools and functions. The settings and permissions in Permission Sets are also found in Profiles, but Permission Sets can extend the users functional access without changing their Profiles. |
| Person Accounts | Person Accounts represents the individual consumers with whom your company does business. |
| Platform Only Language | Platform Only Languages are useful to change the labels of Salesforce. However, to change Cloud Lending Solutions' labels, you have to contact Cloud Lending Solutions. |
Pre-bill Days | Pre-bill Days are the number of days for the bill to be generated before the due date. |
| Pre-Paid Fees | Pre-Paid Fees are fees which is charged to the customer before disbursement. This fee amount is reduced from the disbursal amount and is used only for amortization. |
| Prepayment Penalty Fee | Prepayment penalty fee is the fee that a lender may assess when a borrower repays the loan before the scheduled maturity date; in order to gain advantage of lower Interest rates. |
| Prepayment Penalty Periods | Prepayment Penalty Periods determines the number of payment periods for which the prepayment penalty is applicable. For example, if a loan payoff occurs before the number of periods in this field has passed by, a prepayment penalty will be charged for the loan. |
| Principal or Advance Paid | Principal or Advance Paid is the Principal or advance that has been paid already. |
| Principal/ Advance Remaining | Principal/ Advance Remaining is the remaining amount that needs to be paid for the loan taken. |
| Prepayment Penalty Method | Prepayment Penalty Method is the method in which an additional fee is imposed by a lender if the loan is paid off before its scheduled payoff date. The prepayment penalty is used to discourage early payment of loans because it deprives the lender of future interest payments. |
| Profile | Profile determines the tasks that can be performed by a user and the amount of data that is visible to that particular User. |
| Repayment Schedule | Repayment Schedule is the detailed outline of a borrower's loan application with the original loan amount, showing when the payments are due and how much of the payment goes towards the interest and principal repayment |
| Reserve Amount For Next Due | Reserve Amount For Next Due is the amount that can be applied automatically to the next bill when it is generated. For example, if you were supposed to pay 100$ as a part of your monthly installment, but you decide to pay 120 dollars. Now, 20 dollars becomes the reserve amount for next due. |
Run Diagnostics | Run Diagnostics is a Loan Diagnostics utility that can diagnose potential problem with loan data. Any record in “Error” state will not be picked by daily bank jobs. |
| SOD (Start of the Day) | SOD is a process which must be carried out by each before making any transactions on the given day. This typically involves Daily accruals, Checking loan delinquency, ACH file generation and Due generation. |
| SpreadManually | Spread Manually is a type of payment where the user can override auto spread and provide Principal, Interest and Fees manually. |
| System Date | System Date represents the date for Cloud Lending Solutions' Loan Management System, CL Loan. This is useful for managing payments, contracts or any other feature that is time dependent. This date generally moves forward automatically as various nightly jobs are run in the system, it can be moved backwards as well. |
| Time Counting Method | Time Counting Method determines how interest is accrued over a period of time for a variety of investments, loans or mortgages. CL Loan has three Time Counting Methods namely, Month and Days, Actual Days, and Actual Days (366).
|
| Today's Payoff (approx.) | Today's Payoff (approx.) is the pay off amount as per the system's date |
| Total Due Charges | Total Due Charges is the sum of all the fees that are due for each installment. |
| Tranche | Tranche is the French word for Slice. Disbursal in Tranches indicates that the loan amount is funded in various portions to the borrower |
| User Roles | User Roles can control the reporting structure of your organization and also, the accessibility of data. Users at any given role can view, edit, and report all the data owned by or shared with the users below them in the hierarchy. |
Write off Suggestion Days | Write Off Suggestion Days defines the number of days overdue, after which the system will automatically start suggesting lending accounts for write- off. |
| Write off Tolerance amount | Write off Tolerance amount is the 'short' amount which allows the system to close a loan. For example, if the tolerance amount is 50, and after a payment is posted on the loan, the principal remaining is less than 50 (with Interest and Fees remaining as 0), the system will mark the loan as 'Closed - Obligations met' |