Q2 Originate offers a set of predefined commercial loan products and associated application templates that you can use to create commercial loan applications. You can create more products as per your business. Commercial loans may be offered to businesses or organizations for commercial activities and projects. For example, a loan for the purchase of a property that will be used as a business complex or a holiday resort. Or a loan to set up a vocational training institute.
Prerequisites
Before you proceed to create a commercial loan application, ensure that the following prerequisites are met:
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At least one CL Product with an asset class of Commercial exists for the company.
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An account exists.
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Document categories are associated with the CL product.
Steps
To create a commercial loan application:
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Log in to your Salesforce account.
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Go to Applications > New. Alternatively, select Create New, Application.
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Select the Record Type of New Recordas Loan and select Continue.
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On the New Applicationpage, go to the Select Product section and select a CL Product.
The Asset Class Name is displayed, identifying the type of loan. For example, Commercial (Unsecured), Commercial (Secured), or Commercial (Real Estate).
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In the Borrower Information section, do one of the following:
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Select the New Account checkbox for the new commercial account.
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Select the search icon in the Account field and select Account.
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For an existing account, you can modify the displayed information if needed.
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If you have selected the New Account checkbox, specify the field values as described in the Business Entity Information section of the Field Reference table.
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Specify the field values as described in the Business Address section of the Field Reference table.
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Specify the field values as described in the Shipping Address section of the Field Reference table.
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Specify the field values as described in the Add to Credit Line section of the Field Reference table.
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Specify the field values as described in the Loan Information section of the Field Reference table.
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Specify the field values as described in the Key Dates section of the Field Reference table.
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Specify the field values as described in the Interest Information section of the Field Reference table.
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Specify the field values as described in the Payment Information section of the Field Reference table.
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Specify the field values as described in the Loan Codes section of the Field Reference table.
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Select Save.
An application ID is generated, and the loan dashboard is created for the application based on the departmental approval workflow and documents associated with the loan product.
You can include additional details on this page.
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Specify the Auto Debit Account Information section field values as described in the Field Reference table.
Note
These section fields are available once the application is created.
See the subsequent sections for information on the fields on this page and steps to specify further details on the application.
To add Personal Identification information, do the following steps:
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Go to Documents > Application Documents.
If the document definitions are defined, then the respective folders are displayed under the Documents section.
To define a document, see Documents Configuration.
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For primary identification, select the Primary Identification folder and select
icon of the primary identification section.
For secondary identification, select the Secondary Identification folder and select
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Select Upload.
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Select the number of required documents from the local drive and select Add Documents.
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Select the required uploaded document and select
icon.
The Document Input window is displayed.
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Specify the required field values as described in the Field Reference table and select Save.
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Field Name |
Description |
|---|---|
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Record Type of new record |
The lending product for which you are creating the application. This can be Lease, Line of Credit, or Loan. |
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Select Product |
|
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CL Product |
The type of Line of Credit being applied for. This is based on the record type selected. This is a mandatory field. |
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Asset Class Name |
A grouping of products with similar characteristics. For example, you may group loans to purchase or construct commercial properties like hotels or hospitals or renovation of business complexes under asset class Commercial Real Estate. |
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New Account |
Checkbox to indicate whether the applicant is a new account or an existing customer of the lending organization. |
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Account |
The name of the applicant. In case the loan is for an organization, this signifies the primary contact person of that organization. While searching for an existing account, the system displays the Account Name with the Legal Entity Type name in brackets. For example, Raki(Association). |
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Account Name |
The name of the account holder. |
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Legal Entity Type |
The legal entity is used in Q2 Origination to determine whether a borrowing entity (Party) associated with a loan opportunity is a business or individual relationship. Based on the legal entity, the system determines the fields that are displayed in the borrower management wizard. |
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Account Fax |
The fax number of the Business. |
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Account Phone |
The phone number of the Business. |
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Business Legal Name |
The business legal name of the entity. |
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NAICS Code |
The North American Industry Classification Code of the business entity. |
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NAICS Description |
The description of the NAICS code selected in the NAICS code field of the business entity. |
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Organization ID Number |
The organization Identification number. |
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State of Incorporation |
The state of incorporation of the business. |
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Doing Business as (DBA) Name |
The doing business as name. |
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Date Business Established |
The date on which the business was established. |
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Non-Profit Organization |
Select this checkbox if the entity is a non-profit organization. |
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Required Number Of Signers |
The required number of signers for the business. |
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Billing Street |
The billing address details. |
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Billing City |
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Billing State/Province |
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Billing Zip/Postal Code |
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Billing Country |
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Shipping Street |
The shipping address details. |
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Shipping City |
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Shipping State/Province |
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Shipping Zip/ Postal Code |
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Shipping Country |
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Parent Application |
Specify the Parent Application if you have created any credit line application. |
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Loan Amount |
The Loan Amount. |
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Company |
Displays the selected Company. |
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CL Purpose |
The primary purpose of the application. |
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Primary Source of Repayment |
The primary source from which the borrower is expected to repay the loan. |
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Secondary Source of Repayment |
The alternative or additional source from which the borrower may repay the loan. |
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Status |
The status of the loan. |
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Days Convention |
The number of days convention of the loan. Options supported:
NoteThe value of this field is copied from the product in the application. |
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Expected Start Date |
This field represents the date on which the application is created or started processing(for backdated applications) |
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Expected Close Date |
This field represents the date on which the application processing is expected to complete |
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Expected First Payment Date |
The expected first payment date of the loan. |
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Interest Calculation Method |
The interest calculation method. Options supported:
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Maturity Date |
The date of the maturity of a loan. |
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Participation Date |
This is the date on which another financial institution may contribute to a loan. In participation, several banks may contribute to fund, say, a large commercial loan and share the returns and the risks. |
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Disbursement Date |
The Disbursement Date of the loan amount. |
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Interest Rate |
The Interest Rate of the loan. |
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Spread |
This is the difference between the average yield received by the organization from loans and other interest-generating activities and the average rate paid on deposits and borrowings. |
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Margin |
This is the fixed percentage rate added to an index value to determine the fully indexed interest rate for a variable-rate loan. |
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Payment Frequency |
Select the loan Payment Frequency. Options supported:
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Interest Only Period |
The Interest Only period, if any. |
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Discount Rate |
Any Discount Rate that applies to the current interest rate. |
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Discount Rate Based On |
Select the criteria the Discount Rate is Based On. This can be the Number of Payments or the Ending Date. |
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Term |
The loan term. |
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Amortized Term |
The Amortization Term over which the borrower payments can be spread. If this is shorter than the loan term, the last payment is a balloon payment. |
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Balloon Payment |
Any Balloon Payment that the borrower is making. |
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Payment Amount |
The Payment Amount on loan. |
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APR |
The annual percentage rate (APR) is the annual rate charged for borrowing or earned through an investment. APR is expressed as a percentage representing the actual yearly cost of funds over the term of a loan. |
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Rate Floor |
The rate Floor for a loan. NoteThe value of this field is copied from the product in the application. |
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Prepayment Penalty |
Select the Prepayment Penalty checkbox if a penalty must be applied in case the borrower prepays the loan. |
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Prepayment Penalty Description |
Provide the Prepayment Penalty Description if the prepayment penalty is applicable. |
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Rate Ceiling |
The rate ceiling for a loan. NoteThe value of this field is copied from the product in the application. |
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Call Code |
The call code for CRA reporting. |
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Class Code |
The class code to identify the loan or lending product type. |
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Portfolio Code |
The portfolio code if the loan is included in a portfolio of related loans. |
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Primary Collateral Code |
The primary collateral code, if any, to identify the type of collateral. |
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Bank Routing Number |
The bank routing number is the routing number used in the payment gateway for initiating direct debit /ACH debit. |
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Bank Account Number |
The bank account number to capture the bank account number. |
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Bank Account Type |
The bank account type from the drop-down list. |
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Bank Account Owner Name |
The bank account owner's name. |
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Primary/Secondary Identification Details |
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Identification Type |
The type of the document. Options supported:
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Identification Number |
The unique identification number of the document. |
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State of Issuance |
The present state of the document. |
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Date of Issuance |
The date on which the document was issued. |
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Expiration Date |
The expiry date of the document. |