Investments on Multiple Disbursements of an FIT Loan

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Investments on Multiple Disbursements of an FIT Loan

Overview

With the Hydrogen release, when a loan is disbursed in tranches, investors can also invest on each disbursement by associating an investment order with it.

While disbursing, you can specify an investment order that contributes to that disbursement. If you do not specify an investment order for a disbursement, the system assumes that the disbursements from each of the investment orders are in proportion to their commitment percentage.

Key Concepts

  • The investment amount is recalculated based on the transaction value entered at the time of disbursement, and is based on the commitment percentage defined.
  • While disbursing or changing a disbursal amount, the sum of all the investment amounts of different investors must be less than or equal to the disbursal amount.
  • Investor cannot invest more than the commitment amount.
  • When the disbursal amount is changed, the investment orders must be regenerated.
  • Interest accrued is calculated based on the remaining investment amount for each investor.
  • When there are subsequent disbursements, new investors can also fund on a disbursement tranche, and their interest accrual starts from the investment date.

Invest on Multiple Disbursements

Prerequisites

Before investing on multiple disbursement amounts, ensure that the following prerequisites are met:

  • Investor has available funds.

  • Loan is approved.

  • Lending product has FIT enabled.

Steps

To invest on multiple disbursement amounts: 

  1. Log in to your Salesforce account.

  2. Click the (App Launcher).

  3. Search for CL Loan, and then click it.

  4. Create a Contract and approve it.

  5. Make a partial disbursement.

  6. Create an IO with or without multiple investors. 

    Note:

    For more information on creating an IO, see Manually Setting Up an Investment Order on a Contract.

  7. While creating a second or multiple disbursements, click Regenerate Investment Distributions before you change the Investment Amount as shown in the following image:

    Note:

    You must Regenerate Investment Distributions before you can change the investment amount.

  8. Change the investment amount if required.

    • The sum of all investment amount must be less than or equal to the disbursal amount.

    • The default value is the commitment percentage of the default disbursal amount.

    • If the commitment percentage is not defined, the system divides the disbursal amount by the number of investors and displays that value in the investment amount.

  9. Click Validate, and then click Save.

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