Create a commercial lease application

A commercial leasing agreement is a process wherein the assets are leased out for commercial purposes. Most businesses choose to rent assets instead of buying them because it requires less capital. A commercial lease can be extended to both individuals and businesses.

Creating a commercial lease comprises of creating a contact, a party, and subsequently, creating the lease application. The parties allow you to define the people involved in the lease. For example, lessor, lessee, vendor, dealer, guarantor, the insurance provider. You can create multiple parties for an application.

You can create a commercial lease application in the following two ways:

• Convert a quick quote into an application using the Convert to Application option on the Quick Quote page.

  Note:

  This creates a lease application with the details you specified while creating the quick quote. 
  If needed you can edit the application details while the conversion.

• Create a commercial lease application.

Prerequisites

Before creating a commercial lease application, ensure that the following prerequisites are met:

• A contact or an account is set up.

• The parties are set up.

• The CL Product is defined.

• The vendor setup is defined.

Steps

To create a commercial lease application, perform the following steps:

1. Log in to your Salesforce account.
   

2. Select ( App Launcher).
   

3. Search for Q2 Origination, and then select it.
   

4. Go to Applications and select New.
   

5. Select the Select a record type as Lease.
   

6. On the New Application page, go to the Select Product section and specify the  CL Product to identify the lease product.
   

   For example, Vehicle Lease. Your organization may have defined lease products for vehicles, equipment, or commercial vehicles such as trucks.
   

   The Asset Class Name is displayed identifying the type of loan.
   

   For example, Commercial (Unsecured), Commercial(Secured), or Commercial (Real Estate).
   

7. In the Borrower Information section, do one of the following:
   

   1. Select the New Account checkbox if the borrower is a new customer.
      

   2. For existing customers, select on the search icon in the Account field and select the account or business name.
      

      For an existing account, you can modify the displayed information, if needed. 
      

8. If you have selected the New Account checkbox, specify the field values as described in the following table:
   

   Field Name	Action and Information
   Record Type of new record	The lending product for which you are creating the application. This can be a Lease, Line of Credit, or Loan.
   Select Product section
   CL Product	The type of loan or lease being applied for. This is based on the record type selected. For example, if the Record Type is Loan, you may have products such as Business Loan, Online Loan, or Education Loan. This is a mandatory field.
   Asset Class Name	A grouping of products with similar characteristics. For example, you may group Lease for purchase or construction of commercial properties such as hotels or hospitals, or renovation of business complexes under asset class Commercial Real Estate.
   Borrower Information section
   New Account	Select this checkbox to indicate whether the applicant is a new account or an existing customer of the lending organization.
   Account	The name of the applicant. In case the lease is for an organization, this indicates 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).
   Business Entity Information section
   Account Name	The name of the account holder.
   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 an individual relationship.  Based on the legal entity, the system determines the fields that are displayed in the borrower management wizard.
   Account Fax	The fax number of the business.
   Account Phone	The phone number of the business.
   Tax ID	An identifying number used for tax purposes.
   Business Legal Name	The business legal name of the entity.
   NAICS Code	The North American Industry Classification Code of the business entity.
   NAICS Description	The description of the NAICS code selected in the NAICS code field of the business entity.
   Organization ID Number	The organization Identification number.
   State of Incorporation	The state of incorporation of the business.
   Doing Business as (DBA) Name	The doing business as name.
   Date Business Established	The date on which the business was established.
   Non-Profit Organization	Select this checkbox if the entity is a non-profit organization.
   Required Number Of Signers	The required number of signers for the business.
   Business Address section
   Billing Street	The billing address details.
   Billing City
   Billing State/Province
   Billing Zip/Postal Code
   Billing Country
   Shipping Address section
   Shipping Street	The shipping address details.
   Shipping City
   Shipping State/Province
   Shipping Zip/ Postal Code
   Shipping Country
   Add to Credit Line section
   Parent Application	Specify the parent application if you have created any credit line application.
   Lease Information section
   Lease Type	The type of the lease account. The supported options are: Operating Lease Finance Lease Loan Undefined Close Ended Open-Ended
   CL Purpose	The loan purposes. You may define multiple loan purposes to categorize your loan products for defining the documentation requirements, applicable credit policies, and other lending terms.
   Secondary Purpose	The lending purpose.  You can define a secondary purpose in the Leading Purpose page for CL Purpose.
   CL Company	The company processing the loan application. This is the name of your organization through which the lease application is processed.
   Sales Division	The sales division for the lease application. Supported options: Dealer Direct
   Term	The leasing team.
   Pricing Method	The Pricing Method is used to calculate lease payments. This can be the Rate Card or Manual.
   Days Convention	The Days Convention. For example, 365/365, or 30/360. This is the model used for calculating the interest. If you select 30/360, the system always considers 30 days in a month and the year as 360 days. If you select 365/365 the system always considers February as 28 days and the year as 365 days. If you select Actual days the system always considers the actual number of days in a month or the actual number of days in a year. Suppose, the year is a leap year (29 days in the month of February) the number of days in a leap year will be 366. In such a scenario, the Actual Days would be 366.
   Status	The status of the lease application.
   Expected Start Date	The expected start date of the lease application.
   Expected Close Date	The expected closing date of the lease application.
   Expected Commencement Date	This field represents the date on which the lease contract is expected to start. It might be the same as the Expected Start Date, or you can change it as per the requirement. Note: The Expected First Payment Date on a Pricing tab of a lease application is displayed based on the Expected Commencement Date field.

9. Select Save.
   

   An application is created with the status as New-Entered. Note the application ID at the top left of the page.

   Note:

   Once you create the commercial lease application, you must perform the underwriting tasks and credit decisioning for the lessee. You can collect the documents required to process the lease application through the Deal Room, and create the application processing workflow by defining the Deal Flow through the Lease Dashboard. See subsequent chapters for information on how to set up and complete the application processing.

• To add Equipment, see Equipment.