What happens when a finance agreement receives a payment

What happens when a finance agreement receives a payment

When a finance agreement receives a payment, the following takes place:
  1. Finance agreement receives payment from the borrower.
  1. The balance on the finance agreement is reduced.
  1. The arrears balance on the finance agreement is reduced.
  1. If the payment has overpaid the finance agreement balance at the time, a "TransferFromBalanceToOverPay" transaction is created where the overpayment amount is transferred to the overpay balance pending clearance of the payment.
  1. Once the payment clears  (as per the days to clear funds business rule) 
    1. If the payment is to settle the finance agreement:
      1. The accrued interest, if any, that has not been capitalised yet will be capitalised.
      1. Any interest capitalised will have a "TransferFromOverPayToBalance" transaction created where the interest amount is transferred out of the overpay balance pending.
      1. If the balance on the loan is less than or equal to the small balance write off amount, the amount will be written off and the balance reduced to zero.
      1. The arrears balance is reduced to zero by way of an "Arrearsadjustment" transaction. Note this does not affect the balance of the finance agreement, it is to bring arrears in line with the settlement payment especially when the finance agreement has had additional payments and arrears is showing it is ahead of schedule.
      1. If the finance agreement is settled prior to the final payment date, the status of the loan is updated to “settled” and the investments status is changed to “Settled”. If the finance agreement is settled on or after the final payment date, the status of the finance agreement is updated to “matured” and the investments status is changed to “matured”
      1. If a document workflow has been created for a document to be generated when the status of the finance agreement changes to “settled” then the document will be generated. If the document template is setup to automatically email to the borrower then it will be emailed.
      1. If an email workflow has been created for an email to be generated when the status of the finance agreement changes to “settled” then the email will be generated and sent to the borrower.
      1. If a SMS workflow has been created for an SMS to be generated when the status of the finance agreement changes to “settled” then the SMS will be generated and sent to the borrower.
      1. If a task workflow has been setup to be generated when the status of the finance agreement changes to “settled” then the task will be created and assigned to a staff member. If the task has been setup to email then a email will be sent to the staff member.
      1. if the “Account Settled – Borrower” note category has been setup, the note will be generated and depending on the settings it could appear on the notice board for the borrower on the portal, be emailed etc.
      1. if the “Account Settled – Investors” note category has been setup, the note will be generated for each investment and depending on the settings it could appear on the notice board for the investor on the portal, be emailed etc.
    1. The investor fund account is increased with the payment amount less withholding tax less management fees (if the fee type charged are “RM Fees” or “management fees”).
    1. The withholding tax portion is allocated to the tax control account.
    1. The management fee portion is allocated to the manage fee control account.
    1. Any overpayment balance will be transferred to the borrowers fund account (which they can then be withdrawn from the portal).