Glossary
This section describes the alphabetical list of terms with definitions. These include only the terms referred to or used in this user guide.
Name of the Term | Definition |
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Account | An account is a business entity. Within an account, multiple contacts can be created. |
Amortization |
Amortization is the process of paying off a debt over a period of time through regular payments. A portion of each payment goes towards paying off the interest, while the remaining amount is applied towards the principal balance. |
Amortization Schedule | An Amortization Schedule is a table that has details of each periodic payment on a loan, as generated by the Calculator. |
Application Configuration Wizard |
The Application Configuration Wizard is used to define the loan origination process workflow as per your requirement. This is applicable for the non-Skuid enabled version of Q2 Origination. You can dynamically manage all of your business credit requests faster and with more consistency. |
Auto Decisioning |
Auto Decisioning is the process of systematic decision-making without human intervention. Based on configured tasks and evaluation criteria, the system is able to evaluate an application and provide the credit decision. The decision status is either Declined or Approved and is based upon objective factors that, if met, allow the decision to be made. |
Balloon Payment | Balloon Payment is a large, lump-sum payment scheduled at the end of a series of smaller periodic payments. |
Binders |
Binders can be used to view, share, collect and store all your important information in a single, centralized location. These Binders can hold documents, images, audio, and video clips in any format from different sources such as your mobile phone, files from remote desktop, or cloud storage service such as Dropbox. |
Binder Shelf | Binder Shelf allows you to bind all the conversation elements in a container for easy access and retrieval. |
Black Book |
Black Book provides new and used retail and trade-in values and also provides information on the models of vehicles that are the most popular in various regions. It provides information on three used car conditions, namely, Clean, Average, and Rough. |
Calculator |
After the creation of a loan application, financial Institutions can negotiate the terms with the customer by making use of the Calculator. This generates the Installment Schedule and provides the details such as the Due date, Contract date, Amount, Principal, Interest, and Balance. |
Collateral | Collateral is the asset pledged by a borrower to secure a loan; these assets can usually be forfeited by the lender in the event of a default. |
Collateral Value | Collateral Value is the estimated value of an asset that is pledged as collateral to obtain a loan. |
Contact | Contact is someone you have a business relationship with, someone you know. |
Checklist | Checklist displays any missing information in the Application. This missing information can hamper the conversion of an application to a loan application. |
Closing Balance | Closing Balance is the balance of a bank account at the end of a period, such as a month or a year. If this is listed on a bank statement, it indicates the closing balance on the date the statement was printed. |
Credit Reporting Agency |
Credit Reporting Agency collects information on an individual's borrowing and bill-paying habits from various sources. For example, adequate credit information could facilitate lenders in screening and monitoring borrowers, as well as avoid giving loans to high-risk individuals. |
Credit Decisioning | Credit Decisioning enables standardized and consistent credit decisions to be made on a centralized platform throughout the organization. |
Credit Limit | Credit Limit is the maximum advance amount that can be given to the customer at any point in time. |
Credit Pull |
Credit Pull is the process of extracting credit history from a potential client through credit reporting agencies such as Equifax, Trans Union, and Experian. Financial institutions are required to report the credit history of their borrowers to these bureaus every month.
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Custom Settings |
Custom Settings are useful when you have to store information that will be accessed from the Apex code quite often. Custom settings are similar to Custom Objects and enable application developers to create custom sets of data, as well as create and associate custom data for an organization, profile, or a specific user. |
Days Convention |
Days Convention determines how interest accrues over a period of time in a variety of transactions. This can be 30/360, 365/365, or Actual Days
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Deal Room |
Deal Room is a self-service portal where different parties involved in the processing of applications can upload and exchange documents. Documents can be arranged by categories, and access can be provided to these documents to relevant parties. You can configure tasks around the upload, update, and verification of the documents and also include the documents in the due diligence checklist. |
Declining Balance | Declining Balance is based on the outstanding loan balance. It is the balance of the money that remains in the borrower’s hands as the loan is repaid during the loan term. As the borrower repays installments, the remaining loan balance declines over time. The Interest is then charged only on the loan amount that the borrower still holds. |
Draw Term | Draw Term is the period during which the amount can be disbursed to the customer. |
Equipment | Equipment is a tangible asset that is peripheral to a company's operations but is nonetheless necessary. Equipment is generally moveable and may be more or less expensive than other equipment-for example, trucks, transport materials. |
FMV | (FMV) Fair Market Value is the price that a given property or asset would fetch in the marketplace. |
Flat Rate Calculation Method | The flat Rate Calculation Method is a method in which the Interest is computed on the original amount every month. |
Flexible Repayment | Flexible Repayment is a method in which the Interest is calculated on the reduced principal balance, with the change in Interest rate. |
Funding | Funding verifies the contract documentation, records the contract details, modifies the contract for approved changes, verifies that the documentation is complete before turning over to account, and requests funds to be released to the vendor. |
Kelly Blue Book | Kelley Blue Book is a vehicle valuation and automotive research company that is recognized by both consumers and the automotive industry. |
Loan Dashboard | Loan Dashboard provides a snapshot of the approval workflow and status of a given application. You can view the different departments and the sequence in which they must process the application, the tasks that each department must perform, and their completion status. Any exception tasks set up outside of the defined workflow can also be viewed. |
Lending Product | Lending Product acts as a template from which the loan account receives default values. |
Line of Credit | A line of credit is a credit arrangement in which a financial institution agrees to lend money to a customer up to a specified limit. Generally, a line of credit is arranged before the funds are actually required, thus providing flexibility to the customer. It ensures the ability to meet short-term cash needs when the need arises. |
Make | Make is the manufacturer or the trade name of the vehicle. |
Notes and Attachments | Notes and Attachments are used to enhance the Quick Quote information. |
Opening Balance |
Opening Balance is the amount of funds in a account at the beginning of a period, especially a month or a year. For example, if you have a bank account with a balance of $2000 at the end of the month of August, this becomes the opening balance for the beginning of the month of September. |
Open Ended Loans |
Open-ended loans are similar to credit card loans, where the limit of the loan is decided. The borrower can keep withdrawing funds until the agreed-upon limit is reached. If the borrower repays any portion of the principal, the difference between loan balance and limit can be withdrawn. The key operative factor for this type of loan is funding limit, where funding limit is the time till when this facility is available, and there is no pre-defined repayment schedule to bring the loan balance to zero. |
Parties | Parties allows you to define the people involved in the lease. For example, lessor, lessee, vendor, dealer, guarantor, and the insurance provider. |
Pricing | Pricing is the process of determining what a company will receive in exchange for its product or service. |
Profiles | Profiles contain user permissions and access settings that control what users can do within your organization. |
Quick Quote | Quick Quote is a type of lease sales quote which can be used to estimate pricing for leads based on existing pricing policies. Quick Quotes do not require you to identify a prospect. The sales representatives or dealers may generate a Quick Quote for any customer or asset to provide sample payment amounts and lease term options available before pulling a customer’s credit. |
Rate Card |
Rate Card is a document that lessors maintain for pricing leases. A rate factor is defined for each variation to determine the monthly rental payment on the financed amount. On a given date, only one Rate Card is effective. |
Rate Factor | Rate Factor is defined for each variation to determine the monthly rental payment on the financed amount. |
Record Type |
Record types allow you to offer different business processes, values in drop-down menus, and page layouts to different users. Some of the available record types are Lease, Loan, and Line of Credit. |
Residual Amount | Residual Amount is the value of an asset at the conclusion of a lease. |
Roles | Roles help to determine the levels of access users have to the data of your organization. |
Role Based Application Configuration | Role-based Application Configuration, if enabled, allows you to limit access and visibility of application content based on the user profile. |
Scorecard | Scorecards are used to evaluate the applications based on predefined criteria and assign a score to the application. |
Social Security Number | Social Security Number is a nine-digit number assigned to citizens, temporary residents, and permanent residents in order to track their income and determine benefit entitlements. It consists of nine digits divided into three parts, with each part usually separated by a hyphen. |
Start Meet | Start Meet is integrated with Moxtra and can be used to invite anyone from your contact lists to view, edit, and engage in a group conversation through a simple chat interface. Primarily, this can be used to organize tasks, collaborate with any group or a team on various projects, assign tasks, receive status updates and discuss in real-time. |
Term Residual | Term Residual is the expected market value at the end of the lease term. This is expressed as a factor of the periodic payment amount. |
VIN |
VIN (Vehicle Identification Number) is a unique code including a serial number used to identify the vehicles. It is a combination of letters and numbers. |
Valuation Source | Valuation Source is the source from where you can evaluate the asset. Here,you can choose from Black book, Kelly Blue Book, and Manual. |
Yield | Yield is the income return on investment. This refers to the Interest received from a security and is usually expressed annually as a percentage based on the cost of the investment or its current market value. |