Creating an investor
An investor is a person who commits capital with the expectation of financial returns. The investor must have sufficient funds before investing in a loan.
You set up an investor as an account in CL Loan. The investor may invest in loans serviced by the lender in part or full, and in a single loan or across a portfolio. The rate at which investors get the return on their investment is called the certificate rate. Different lenders may invest at different certificate rates. Similarly, taxes and fees may be applicable on the investments, and these are configured as part of setting up an investor and fees.
You create an investor through the Accounts tab in CL Loan. You can also access that page through Service Configuration, Product, Product Management, Fractionalization, Create New Investor. The Investor checkbox in the account creation page identifies an account as an Investor.
The fields specific to investors are explained below.
Field reference
| Field Name | Description |
|---|---|
| Account Name | Name of the investor. |
| Investor | If selected, this check box indicates that the account is an investor. |
| Collect Service Fees On |
The value selected here overrides the values in Fractionalization Parameters. However, the values specified within an individual investment order overrides all other values. You can collect service on Principal, Interest, or Fees or all of these. No Fees means no service fee is charged. |
| Total Invested Amount | The total funds invested in various contracts. This includes the amount in investment bookings and investment orders. |
| Total Invested Principal Remaining | The total invested amount yet to be recovered from borrowers. |
| Available Funds | The amount remaining with the investor. All principal recovered from borrower payments is added to the available funds. |
| Auto Invest | If selected, the investor's funds are invested automatically by the platform based on predefined criteria. |
| Additional Information | |
| Maximum Loan Term | The maximum loan term up to which the investor wants to invest. Loan contracts beyond this term are not shortlisted for investment. |
| Reinvest Interest | If selected, the interest component of the ILT created for the investor payout is reinvested. |
| Reinvest Principal | If selected, the principal component of the ILT created for the investor payout is reinvested. |
| Borrower Exposure Percentage | If selected, the interest component of the ILT created for the investor payout is reinvested. |