Setting Up Auto Investment

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Setting Up Auto Investment

Some setups are required from the lender and the investor to enable and use the automatic fund investment functionality:

A lender needs to define the following:

  • Auto investment option at the org level.
  • Investment queue amount.

An investor needs to specify the following:

  • Auto invest option
  • Borrower exposure percentage or Borrower exposure amount
  • Maximum loan term
  • Percentage in Credit Bank Allocation

Enabling Auto Investment at the Org Level

Prerequisite

None.

Steps

Perform the following steps to set up the custom settings to activate auto investment:

  1. Log in to your Salesforce account.
  2. Click your Username.
  3. Go to Setup, PLATFORM TOOLS, Custom Code, Custom Settings.
  4. Go to Org Parameters.
  5. Click Manage.
  6. Select Auto Invest Functionality. 
  7. Click Save.

Auto investment is now activated for your organization.

Defining the Investment Queue Amount

Investment queue or tokens allow investors to invest in loan applications in lots. This is most useful when there are multiple investors available to invest in a loan, or when an investor wants to partially invest in a loan. Investors can invest multiple tokens into a loan.

Prerequisites

None.

Steps

Perform the following steps to define the queue amount:

  1. Log in to your Salesforce account.
  2. Go to Setup, PLATFORM TOOLS, Custom Code, Custom Settings.
  3. Scroll to Fractionalization Parameters.
  4. Click Manage.
  5. Click Edit.
  6. Specify the value in Queue Amount. For example, 500. If the investor wants to invest 3000 in a loan, then the investor would invest 6 tokens.
  7. Click Save.

Enabling Auto Investment for the Investor

As part of enabling auto investment for the investor, you must update the investor's details with a few settings and values, as described below.

Prerequisites

The following is a prerequisite for enabling auto investment for an investor:

  • The investor is set up as an account in CL Loan and CL Marketplace.

Steps

Perform the following steps to enable auto investment for an investor:

  1. Log in to your Salesforce account.

  2. Click Accounts.

  3. Click the investor's account for which you want to enable auto investment. The Account Detail page is displayed.

  4. Click Edit.

  5. Select the Auto Invest checkbox.

  6. Define the Borrower Exposure Percentage or Borrower Exposure Amount.

    Note:

    You can either define Borrower Exposure Percentage or Borrower Exposure Amount, and not both.

  7. Specify the Maximum Loan Term for which the investor would want to invest in a loan. Loan applications matching the specified loan term are considered for auto investment.

  8. Select all the components to Collect Service Fees on. 

  9. Specify the Service Rate on Investment. If the investor opts for auto investment of funds, the system first checks for the service fee rate specified at the account level. Else, the service fee set up on the loan application is used. This rate is applied on the components selected in step 8 above. 

  10. Define the credit band allocation:

    1. Scroll down to the Credit Band Allocation related list.

    2. Click New Credit Band Allocation.

    3. Specify a Name for the credit band. For example, A.

    4. Select the Credit Rating Matrix that maps to the credit band.

    5. Specify the Percentage of funds to be invested in the credit band. For example 100. You can specify any percentage for each credit band, not exceeding 100. For example 100 for band A, 100 for band B and 20 for band C. This means that based on loan applications in each credit band, the specified percentage of the investor's funds would be available for investing in each band. This value is 0 by default.

    6. Click Save, or Save and New to create more credit bands. 

  11. Click Save.

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