---
title: "Loan Product Setup"
canonical: "https://bizcore.refined.site/space/BCKB/1776680977/Loan%20Product%20Setup"
format: markdown
---
> Macro (toc)
# **Overview**
In Biz Core, the Loan Product defines the loan settings, fees, documents, and templates the system uses across the different stages of loan origination and management.
The Loan Product Setup process has two main stages. First, users open the Creation Wizard and enter the high-level details for the Loan Product. Once the product has been created, users can further configure it by adding additional properties.
---
# **Creating a New Loan Product**
The first stage of setting up Loan Product(s) is to use the Creation Wizard in order to enter the high-level details.
## **Launch Create New Product Wizard**
Loan Products can be created using the Wizard, first use the Sidebar to navigate to **Settings **→ **Lending Module →** **Loan Products**.
Next, hover over the **Actions** icon on the bottom right, and click **Create New Loan Product**.
## **Using the Creation Wizard**
From within the Wizard users can input the initial information about the Product they are creating. These details can be edited at any time:
- **Product Name**: This is the name of the Loan Product.
- **Short Name**: Create an acronym or shortened version of the Product Name.
> ℹ️ The Product and Short Names are both shown to users of the Biz Core Portal. Use names that are recognised internally.
- **Description**: Input a brief description of the loan, the amount or its features.
- **Loan Product Type**: Choose from the dropdown box if the Product is a Personal or Business Loan.
- **Loan Amount**: Enter the Minimum, Maximum and Default Amount of the Loan.
- **Loan Term (Weeks)**: Input the Minimum, Maximum and Default Term of the Loan.
> ℹ️ When an applicant first opens the [Application Form](https://bizcore.refined.site/space/BCKB/1776615437/Application+Form+Setup), the Default values will determine the initial settings for each segment.
Using the Toggles, continue setting up the new Loan Product:
- **Send Bank Statements Link When Lead Is Converted Without Bank Statements?**:
When enabled, an email will be automatically sent with a bank statement request link if an application form is received with no bank statement files attached.
- **Refresh Bank Statements When Transaction Is Declined?**:
If toggled on for the Loan Product, bank statements will be re-gathered any time a payment declines on the loan. The borrower must have initially provided bank statements through the request link for refresh to work.
> ℹ️ Integration with Illion or Credit Sense Bank Statements required, and incurs a cost.
- **Assets Required?**: Enabling this will require Biz Core users to provide asset details before they can approve the loan application.
- **Include loans in Loan Disbursement Files?**: When enabled, any loans associated with this Loan Product that are in **Ready** status will be automatically included in [Loan Disbursement](https://bizcore.refined.site/space/BCKB/1857880159/Loan+Disbursements) Files. These files can then be generated by users to support and streamline bulk disbursement processing.
- **Allow manual loan disbursements?**: If enabled a *Funds Disbursed**** ***button will appear on records from this Loan Category once their Status is set to Ready. Users can click the button to indicate the funds have been manually disbursed to the borrower.
- **Send loan statements?**: Enable this to automatically send loan statements to borrowers on a monthly basis.
- **Choose your Arrears Mode**: Switching the toggle between modes will show a description of each.
- Standard: The Loan Product will move into the Arrears status automatically if the arrears balance goes into positive.
- Payment: Regardless of the amount in arrears, the user defines a minimum payment amount that will trigger the loan to go from Arrears to Active.
Once the user has input the values and adjusted the toggles for their new Loan Product, they click the **SUBMIT **button to create it.
---
# **Editing**** a Loan Product**
In this stage of the process users can add additional properties to the Loan Product. Remaining in the same area of the Biz Core Portal, navigate to the Loan Product and click the **Pencil **✏️ icon associated with it:
After opening the Edit Wizard, users can use the tabs along the top of the screen to switch between each property:
---
## **Fees**
Fees are the charges associated with the loan product, *(for example: establishment fee, dishonour fee, reschedule fee)*. Users can also access and edit them during the loan setup stage of the application.
On this page a user can add, edit and remove fees related to the loan product.
> ⚠️ Please be aware that any alterations made to fees will solely impact new loans. Existing loans will continue to maintain the fee structure that was established during their creation.
### **Add Fee**
To add a fee:
- Click **Plus **:plus: icon at the bottom-right corner of the page, this action will generate a new row where the user can enter the necessary details for the fee:
- After providing the fee details click the **Tick **:check_mark: icon to confirm the creation of the new fee, or the **Cross **:cross_mark: icon to discard it.
- For a detailed explanation of each fee field, consult the Fee Fields Explained table provided below.
### **Edit or Delete Fee**
To edit a fee:
- Click the **Pencil **✏️ icon attached to the fee and make any adjustments.
- Click the **Tick **:check_mark: icon to confirm, or the **Cross **:cross_mark: icon to discard changes.
To delete a fee:
- Click the **Bin **:cross_mark: button and confirm in the popup window by clicking **YES**.
Users can also deactivate a fee using the toggle. In this case it will no longer be applied to Loans. However, the fee will remain associated with the Loan Product in case the user decides to utilise it in the future.
### **Fee Fields Explained**
| **Field** | **Description** |
| --- | --- |
| **Name** | Assign a name to the fee, such as "Establishment Fee" or "Dishonour Fee," ensuring that the name of the fee reflects its purpose for being imposed. |
| **Amount Type** | Choose one of the options provided in the dropdown menu:
**Amount**: This represents the specific dollar value that will be charged.
**Percent**: This will impose a percentage based on the loan amount.
Users have the flexibility to input either a whole number or a decimal value. |
| **Min.** | Lowest amount that a user can set when establishing a loan. |
| **Max.** | The highest amount that a user can increase the fee to when setting up a loan. |
| **Default** | This is the pre-filled amount that will be automatically populated when a user sets up a loan. |
| **Fee Type** | Categorise each fee created by assigning it a Fee Type. Users can add multiple fees of the same type. Check the Fee Types section for more information. |
| **Use Hierarchy (Upfront Fee)** | When a user selects Upfront Fee from the Fee Type dropdown menu a toggle will become accessible. Enabling it will add the Upfront Fee into the Payment Hierarchy, as explained below.
Conversely, leaving the toggle disabled for any Upfront Fees will mean they are paid off as part of the principal in the loan ledger and the Hierarchy splits won’t apply. |
| **Payment Hierarchy** | The payment order for outstanding fees on the loan follows a numerical hierarchy, where '1' indicates the first fee to which funds will be applied. If no fees are outstanding, the funds will be allocated to the remaining principal amount.
To set the hierarchy for a fee, users need to save it first. After saving, edit the fee, and the hierarchy dropdown will then become accessible for the user to make the desired adjustments. |
### **Fee Types Explained**
| **Fee Type** | **Description** |
| --- | --- |
| **Upfront Fee** | Added to the principal and becomes part of the total amount of credit. Is paid off as part of the principal or payment hierarchy. |
| **Monthly Fee** | Is charged monthly, on the anniversary of the loan start date. In months where the anniversary date is not present (e.g., the 31st), the fee will be charged on last valid day of that month. For example, if the anniversary date is the 31st of a month, the fee for April will be charged on April 30th.
> ℹ️ To apply this fee, users need to select "Amount" from the Amount Type dropdown menu. |
| **Annual Fee** | Charged annually on the anniversary of the loan start date.
> ℹ️ To apply this fee, users need to select "Amount" from the Amount Type dropdown menu. |
| **Monthly Flat Rate Fee** | Calculated based on the loan amount and charged monthly on the loan start date anniversary. In months where the anniversary date is not present (e.g., the 31st), the fee will be charged on last valid day of that month. For example, if the anniversary date is the 31st of a month, the fee for April will be charged on April 30th.
> ℹ️ To apply, users need to select "Percentage" from the Amount Type dropdown menu. |
| **Compound Interest** | Interest is calculated based on the remaining gross loan balance and accrued on a daily basis.
Compound interest calculation is: `(Total Balance * (Annual Interest Rate ÷ 365.25))`
> ℹ️ To apply, users need to select "Percentage" from the Amount Type dropdown menu. |
| **Simple Interest** | Interest is calculated based on the reducing principal balance (the loan amount that decreases as repayments are made) and is accrued on a daily basis.
Simple interest calculation is: `(Reducing Principal Balance * (Annual Interest Rate ÷ 365.25))`
> ℹ️ To apply, users need to select "Percentage" from the Amount Type dropdown menu. |
| **Missed Payment Fee** | Charged automatically when a direct debit repayment is dishonoured or when the repayment due date elapses without payment. |
| **Manual Fee** | This Type should be applied to cover all other charges, such as enforcement fees, letter fees, and any additional fees not specified separately. |
| **Default Interest Rate** | Interest is calculated on any [Arrears Balance](https://bizcore.refined.site/space/BCKB/1809121281/In-Built+Loan+Behaviour#Arrears-Behaviour-and-Calculation) on the loan and accrued on a daily basis.
> ℹ️ To apply, users need to select “Percentage” from the Amount Type dropdown menu. |
| **Interest Only Simple Interest** | Used to calculate repayments during an Interest-Only Period. Requires a Simple or Compound Interest fee to also be present on the loan product. For more information about this Fee Type please see [Configuring and Applying Interest-Only Periods (IOPs)](https://bizcore.refined.site/space/BCKB/2583330822/Configuring+and+Applying+Interest-Only+Periods+(IOPs)).
> ℹ️ To apply, users need to select “Percentage” from the Amount Type dropdown menu. |
### **Payment Hierarchy Toggle**
If there is no preference for the order in which fees are paid, users can enable the Split Equally toggle located at the top. This setting will divide and distribute payments equally among each fee type and the principal amount.
---
## **Documents**
In this section, users can upload specific documents such as the loan contract, arrears letters, marketing content, and more. Documents will be attached to the loan during various parts of the origination process. These documents will also be available for inclusion in the templates and workflows that are built after the documents step.
> ⚠️ Importantly, every Loan Product must have an associated contract. If users do not intend to provide a contract through Biz Core, add a blank document marked as the contract.
### **Using Tokens in Documents**
Biz Core offers a [list of tokens](https://fsoftsolutions.atlassian.net/wiki/spaces/BCKB/pages/1797357573) that users can add into these documents. When documents are sent, each token is replaced with customer-specific information.
For instance, if {Text.LoanAmount} is added to a document, it will replace the token with loan amount of the current loan for that particular customer.
Refer to [How to Use Placeholder Tokens](https://bizcore.refined.site/space/BCKB/1960083457/How+to+Use+Placeholder+Tokens) for help adding them into documents effectively.
> ℹ️ Please note that for documents using tokens, it is necessary to upload a Word (.doc) file. PDF files are not compatible with token functionality.
### **Uploading Documents**
Documents can support a wide range of files types, such as Word or PDF (.doc or .pdf) files, image files (.jpeg and .png) or structured files (.csv or .xls). If the user tries to upload a non-supported file type, they will receive an error message.
To upload a document:
- Click **Plus **:plus: icon at the bottom-right corner of the page, this action will generate a new row where the user can enter the necessary details for the document:
- **Name**: Enter a name users will recognise.
- **Stage**: Select from the dropdown box Lead, Application or Loan. Each document is associated with a specific record type, and choosing one from the dropdown will specify under which record type the document will be accessible. If users need the document available during multiple records, they will need to upload it again and select each record type individually.
- **Document**: Users click **Choose File** to bring up the file explorer and select the document to upload from their computer, then click the **Upload** ☁️ icon.
- Once uploaded, click the **Tick **:check_mark: icon to confirm the addition of the document to the loan product, or the **Cross **:cross_mark: icon to discard it.
After saving the document, if it is a loan contract, it is important to tick the '**Is Contract**' checkbox on the left side. This step ensures that the document is appropriately attributed as a contract. Failure to do so will result in Biz Core not knowing which document to send when delivering a loan contract to borrowers.
### **Updating Documents**
If making a change to a document, users simply need to upload a new document to the existing row, by clicking **Choose File**, selecting the updated document from the file explorer and clicking the Upload ☁️ icon.
Users can click the **Pencil **✏️ icon to edit a document or delete it with the **Bin **:cross_mark: icon at any time.
---
## **Templates**
In this property section, users can manage email, SMS, and note templates. These templates are useful when users need to send messages to customers manually, eliminating the need to type or copy the same message repeatedly. These templates are also utilised from the workflows property. Email templates can even include attachments from the stored document library, this simplifies and streamlines communication with customers. Note templates are used to automatically add notes to a record that a user can see when accessing it.
### **Using Tokens in Templates**
Biz Core provides a [list of tokens](https://fsoftsolutions.atlassian.net/wiki/spaces/BCKB/pages/1797357573) that subscribers can incorporate into their templates. When are emails or SMS are sent, each token is automatically replaced with customer-specific information, tailoring a personalised message to each individual customer.
For example, when composing an email template, it can begin with "Hi {Text.CustomerFirstName}," and the token will be replaced with the customer's actual first name from the associated record.
When creating new templates, users will find a clickable menu that reveals a list of placeholder tokens specific to the stage they are working on. To use a token, drag and drop it into the subject line, title, or text body of the template:
When the template is generated for a record, the token will be replaced with the corresponding information automatically.
### **Add Template**
To add a template:
- Click the **CREATE NEW TEMPLATE** and use the fields that appear on the right-side of the page to build it:
- **Name**: Give the template a name users will recognise.
- **Stage**: Select a stage: Lead, Application or Loan from the dropdown box. This is choosing the stage of the loan process the new template can be used for during automated workflows. Or when manually sending SMS and emails from either the Lead, Application or Loan record, the template will be available based on the stage they pick.
- **Message Type**: Choose from the dropdown box which type of template to create; Email, SMS or Note. Depending on their selection users will need to fill out different fields, such as Subject.
- **Message Body Box**: Each message type option will launch a respective box where users can type the body of their message. Remember to use Tokens to add a personalised touch.
- Click **SAVE **once satisfied to create the new template card, or click **CANCEL **to discard it.
### **View, Edit or Delete Templates**
Templates users have created are stored as template cards, to view or manage them:
- Choose a stage from the dropdown box to view stage-specific templates, and message type widget to see the saved template cards for each message type:
- To **View** the template, click on the template card and it will expand on the right of the page.
- To **Edit** the template, click the **Pencil** ✏️ icon on the template card to edit, this will open the template on the right-hand side of the page, where users can make their changes. Click the **SAVE** button to apply the changes or **CANCEL** to discard them.
- To **Delete **a template, click the **Bin **:cross_mark: icon and confirm deletion by selecting **YES **in the popup window.
### **Add Attachment To Email Template**
Attachments can only be included in email templates, and users can only use documents they have previously added to the loan product. To add an attachment:
- Choose a stage from the dropdown box, based on which template the user wants to add an attachment to.
- Expand the Email Template widget and navigate to the specific template the user wants to add the document to.
- Click the **Attachments** **(0)** text to open the dropdown menu, and click the **Plus** :plus: icon:
- The user can now select a Document Template from the dropdown box, before clicking **SAVE** to attach it to the email template card.
Now each time this email template is sent the document will be attached.
Users can remove attachments from templates at any time by expanding the **Attachments **dropdown, clicking the **Bin **:cross_mark: icon and confirming deletion of the document by clicking **YES** in the popup window.
### **Send Test**
Users can also check to see how their templates will look by using the send test feature. This is only available for SMS and email templates.
To send a test:
- Navigate to the template card the user wants to test.
- Click the **Send Test** ✉️ icon on the card, this will launch a popup window:
- Depending on the message type being tested, enter an email address or phone number into the **Recipient **field and click **SEND**.
> ℹ️ During tests, placeholder tokens are not replaced with dummy data. As a result, when users receive the test template, they will still see the placeholder tokens rather than actual data.
---
## **Risk Categories**
Risk Categories are internal ratings used to classify loans based on different lending criteria and loan amounts for customers. They offer valuable data for reporting and provide insights to fine-tune subscriber’s lending strategy.
The usage of Risk Categories can be tailored to a subscriber’s business and lending model, providing flexibility in how they are implemented. Users will have the option to assign a Risk Category to a loan during setup, although it is not mandatory.
### **Add Risk Category**
To add a new Risk Category:
- Click the **Plus** :plus: icon on the bottom-right of the page, and use the empty fields that open to enter the details of the risk category:
- **Name**: Choose a name for the risk category.
- **Description**: Provide a description of the category, or how it can be applied.
- Click the **Tick** :check_mark: icon to save it, or the **Cross** :cross_mark: to cancel.
Remove risk categories at any time by clicking the **Bin **:cross_mark: icon or edit them by using the **Pencil** ✏️ button.
---
## **Workflows**
Workflows is where users can manage the automation of any SMS or email templates that they want to be sent or adding notes to the record with a note template. These automations are referred to as Actions. Currently only records in the application or loan phases can use the workflow feature.
Workflows are managed through the status of a record, meaning an action will be automatically undertaken, such as a template document being emailed, based on the status of a specific loan or application.
Users can choose either Pathway or Time-Based Actions:
- **Pathway Actions**: these actions can create SMS, emails or notes from templates when a record transitions from one status to another *(For example: when a loan status changes from Active to Arrears, send the Arrears Letter email template)*.
- **Time-Based Status Actions**: these can create SMS, emails or notes from templates when a record maintains a particular status for a duration of time the user has set *(For example: when an application status has been in Approved for 2 days, send the You Have Documents to Sign Reminder SMS template)*.
- Users can add as many actions as they like to a specific rule, or create as many individual rules as they want.
To create Actions, select either **Application **or **Loan **from the menu and click the **Pathway Actions** or **Time-Based Status Actions **bubble:
### **Add Pathway Actions**
To create a new pathway action:
- From the Pathways List, choose the specific status transition that should trigger the desired action, this will open a workflow action card on the right side of the page:
- Click the **Plus **:plus:* *icon to add a new action, then select the specific Action Type from the dropdown box. This is the action that will occur when the status transitions, such as Send SMS Message.
- Select a Template from the dropdown box to use for the action, and click **ADD**.
The user has now setup a pathway action. Any attachments in email templates will also be sent when the workflow is executed.
### **Add Time-Based Status Workflow**
To create a new time-based status action:
- From the Application Statuses, choose the specific status that will trigger a desired action, when the duration reaches a set amount of days. This will open a workflow action card on the right-hand side of the page:
- Click the **Plus** :plus: icon to add a new action, then select the specific Action Type from the dropdown box. This is the action that will occur when the status duration reaches the limit the user set.
- Select a Template from the dropdown box to use for the action.
- Enter the Duration in Days, with a minimum of 1. This is setting the amount of time a record remains in the specific status before triggering the action the user is creating.
- Optionally, give the action a name, and click **ADD**
The user has now setup a time-based action. Any attachments in email templates will also be sent when the workflow is executed.
### **Edit or Delete Workflow Actions**
- To **Edit** an action, locate it within the workflows and click the **Pencil **✏️ icon. To save the changes click the **Tick **:check_mark: icon, or use the **Cross** :cross_mark: icon to discard them.
- To **Delete **an action, click the **Bin **:cross_mark: icon and confirm deletion by selecting **YES **in the popup window.