Down payment against a loan

Fusion Cash Management (FCM) Commercial Loan service allows clients to make payments against its obligations.

To make a down payment

1. Navigate Accounts >> Loans >> Transaction Summary.

2. Click Paydown.

3. Select the relevant Obligor ID. The loan account number is the obligor ID.

4. Select the Obligation ID. The loan note number is the obligation ID.

5. Specify a unique request reference to identify the transaction.

6. The following summary details are auto-displayed:

• Principal Balance

• Interest Balance

7. Specify the account details for the debit account:

• Financial Institution: The financial institution is auto-displayed.

• Debit Account: Select the required debit account to make a payment against the loan.

• Currency: The relevant account currency is displayed.

• Loan Payment Type: Specify whether the payment type is Full or Partial.

• Effective Date: Select the effective date.

• Principal: Specify the principal amount to pay, if the partial amount must be paid.

• Interest: Specify the interest amount to pay, if the partial amount must be paid.

• Amount: The total amount is auto-displayed and is non-editable

8. To specify the recurring transaction, select the Recurring Transaction check box and specify the details:

• Start date: Specify the date from which you want the payment to start.

• End date: Select the end date for the recurring transaction.

• Type of date: Select the type of date.

• Frequency: Select the required frequency for the recurring transaction. The available options are:

– Daily: Select daily and specify the period for which you want the recurring transaction to recur. The Reference Day is displayed.

– Weekly: Select weekly and specify the period for which you want the recurring transaction to recur. You can also specify the day of the week on which you want the recurring transaction to recur using the Reference Day field.

– Monthly: Select monthly and specify the period for which you want the recurring transaction to recur. Using the Reference Day field, you can specify the exact date when you want the recurring transaction to recur.

– Specific Day: Select and specify the day for which you want the recurring transaction to recur. Using the Reference Day field, you can specify the exact day when you want the recurring transaction to recur.

• Holiday action: Specify whether the recurring transaction must be executed on the Previous Business Day or Next Business Day, if the execution date of the recurring transaction falls on a holiday. You can also choose to skip the recurring transaction if the execution date falls on a holiday.

• Next date: Next execution day for the recurring transaction is displayed.

For Partial loan payment type and recurring transaction, specify the Amount.

9. Click Next to navigate to the Verify and Submit page.

FCM displays the verification page based on the configuration of Loan service during client on-boarding.

10. Click Submit to set the paydown request for approval.

Following is example of Paydown:

To approve a down payment request

1. Navigate to Accounts >> Loans >> Transaction Summary.

2. Select the required request.

3. Click Approve.