Disbursement of funds for a finance agreement

A disbursement / payout is the payment of money for a finance agreement. When an application is purchased to become a finance agreement, the funds for the finance agreement can be disbursed to one or multiple parties.  

When an application becomes a finance agreement, a disbursement is automatically created for the balance of the finance agreement to the default party. The balance is the funds that  that have not already been allocated to disbursements / payout. 

Example.

If the application amount is $10 000

If on the application 2 disbursements have already been created namely

a) a disbursement to go to an approved payee for $2000

b) a disbursement to go to the originator for $500

then when the application is purchased to become a finance agreement the balance (10000 - 2000 - 500) = 7500 will be disbursed to the default party as per the business rule. If that party is the borrower then $7500 will be disbursed to the borrower

To adjust the full or part of the disbursement / payouts of an application:

1. Find the application. The application can be found by using the search function in the top right hand corner in Clearmatch:

From the drop down list, select the Applications option, and type in the application number into the search field before pressing the magnifying glass icon

2. Once the application has been found, click on the link to the application number:

3. Select the Actions Panel   > Pay Out. All the disbursement options will be available

4. Enter the amount to be paid in the Amount field and any other additional details depending on the payout type selected.

5. In the "Premium Funding" asset class, the following additional prompts will be appear on the page:

If the “Finance Agreement Disbursement Takes Place” value on the finance agreement business rule on the originator group product is set to “On an insurance policy premium payable date”, indicating that the disbursement of funds will not take place when the application becomes a finance agreement but instead the disbursement of funds will take place on the premium payable dates of insurance policies, the user will be able to:

1. Supply an alternative disbursement payment date which can only be >= to the start date of the application.
   
2. Select the specific insurance policies to be paid.
   

Add additional proportionate disbursement for invoice: If an invoice is selected, the invoice amount will be split to each insurance policy amount. The split will be the invoice amount proportionate to the total amount of all insurance policies.

Policy to Pay: select the insurance policies that are included in the premium payable date

Disbursement Date: the date that the disbursement will take place

6. Click on the button to apply the payment or the button to exit out of the screen without saving any changes.

7. To view all disbursement on an application , select the Disbursements tab either from the drop down list or quick link (if enabled):

8. If a disbursement is incorrect it can be removed by selecting the Actions Panel  > Pay Out > Remove:

9. Select the disbursement that you would like removed from the drop down list:

Click on the button to remove the disbursement or the button to exit out of the screen without saving any changes.

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