---
title: "Loan Application Process"
canonical: "https://bizcore.refined.site/space/BCKB/1779826689/Loan%20Application%20Process"
format: markdown
---
> Macro (toc)
# **Overview**
The loan application process breaks down each step of assessing and disbursing a loan to customers. After finalising the loan, servicing it will be managed through the **Loans** workspace.
Any loan application records within Biz Core will initially have their status set to **New**, meaning the application hasn't been actioned yet. In some instances the application record may not be available in the **Applications** workspace, this is due to the [Application Form not being set](https://bizcore.refined.site/space/BCKB/1776615437/Application+Form+Setup) to automatically convert leads to applications. Users should be sure to check the **[Leads](https://bizcore.refined.site/space/BCKB/1776975877/Lead+Management)**[ workspace to view any unconverted applications](https://bizcore.refined.site/space/BCKB/1776975877/Lead+Management).
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# Step 1 - Find and open an Application
To find **New** loan applications, use the sidebar and navigate to **Workspaces → Applications**:
Click the **SEARCH **button, this will load all the loan applications in order of recently created:
Optionally, before clicking **SEARCH** users can employ the Filters pane to set a search criteria to only return loan applications with a **New **status, these still require user actions to create, filtering out any that have already been converted to open loans:
To begin actioning an application, navigate to an application returned in the search results and click the **Open Details** **⍐ **icon on the top-right:
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# Step 2 - Change the Application status and review documents
## Change Application Status
Once the Application is opened, use the **Arrow ⇆** icon in the Application Summary to switch the loan status from **New **to **Processing **to unlock the application steps:
## Review the document Pane
The right-hand side of the application record contains the documents pane, use the dropdown box to navigate through any documents already attached to the application:
By default Biz Core will generate a document containing the applicants responses to each question in the application form. Any documents uploaded during the uploads step will also be available to access from the documents pane.
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# **Step 3 - Completing each Assessment step**
The application assessment process is broken into steps, each represented by an icon:
The assessment process is also shown on the application record in the search results, denoted by each corresponding step icon, so users can quickly see how far an application has progressed during a search:
> ⚠️ Initially, each step starts with a red tick. As you complete each assessment step, click the red tick. Once clicked, the tick will turn green.
> ⚠️
> ⚠️ The progress of an application will save, so if users leave the portal during an assessment they can resume it from the same step at any time. If a step is marked complete, and the Application is still in Processing status, but changes need to be made to a step users can click the green tick to turn it red again to make additional edits.
> ⚠️
> ⚠️ To successfully finish the loan assessment, all steps must be marked complete before the application can move to a Complete status, even if certain steps aren't relevant to the loan being processed. Once Complete, the application is finalised and locked from further edits.
Click each step in the assessment process to open the widget:
Several steps offer an import feature, allowing users to prefill information from the associated lead record, that was provided by the customer during their application. Click the **Import ⍈** icon any time it is available during the assessment to check for existing information that can be used to complete the step:
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## ID
Any ID’s the applicant provided during the application process, or that are existing on their Customer record will be available to import to the ID step. Users can import them by clicking the **Import **button:
Users can also manually add additional ID documents to the application process by clicking the **Plus **:plus: icon and using the popup wizard, before clicking **SUBMIT**:
The following specific ID types available are listed below, use the Generic option if the ID provided isn’t listed:
- Passport
- Drivers License
- Medicare Card
- Generic
### **GreenID Integration**
Biz Core supports an integration with [GreenID](https://gbg-greenid.com/) for conducting background checks and identity document verification. See the [GreenID Integration documentation](https://bizcore.refined.site/space/BCKB/2144862216) for more information.
> ℹ️ Integration with GreenID required, and incurs a cost.
---
## **Affordability**
In the affordability step, users can enter an applicants income, expenses, and commitments to assess their net remaining income available to service loan repayments. This step helps determine the borrower's financial capacity to comfortably manage the new loan.
### **Send Bank Statements**
> ℹ️ Integration with Illion Bank Statements or Credit Sense required, and incurs a cost.
Users can request bank statements from the applicant by clicking the **SEND BANK STATEMENTS LINK **🏛️ button:
Any statements that are provided will be visible in the Document Pane to assist with completing the Affordability step.
### **Manually adding Income, Commitments and Expenses**
Click the **Plus** :plus: icon next to each option to launch a wizard to add any income streams, existing financial commitments or expenses, before clicking **SUBMIT** to apply it to the application:
Users can add multiple expenses, commitments or sources of income to the application:
### **Calculate Affordability**
The affordability calculator at the top will calculate the net affordability as users add in new income, expenses and commitments.
Use the empty amount field located at the top-right to enter the expected repayment amount for the new loan, and press the **Calculator** icon:
The affordability calculator will then recalculate and display the new net remaining amount, taking into account the repayment amount the user entered.
> ℹ️ All entry amounts are automatically converted to the selected loan repayment frequency displayed in the Application Summary. For example, if the user enters a monthly income while the selected frequency is weekly, the affordability calculator will convert the income amount to a weekly equivalent.
---
## **Collateral**
> ⚠️ Even if no collateral is being added to the loan, it is still necessary to mark this step as completed.
Click the **Plus **:plus: to launch a wizard and add the details of the asset to be encumbered, before clicking **SUBMIT**:
The following asset types available are listed below, use the Generic option if the specific asset isn’t listed:
- Vehicle
- Property
- Generic
Users can also add a valuation to the asset after adding it to the application by clicking the **Plus** :plus: icon attached to the collateral card:
---
## **PPSR Check**
> ⚠️ This step will still need to be marked as completed even if no PPSR check is performed.
Input the reference number of any encumbrance already existing against the asset, returned during the PPSR Check into the field and click **SAVE**:
> ℹ️ **What is a PPSR Check? (PPSR = Personal Property Security Register)**
> ℹ️
> ℹ️ This check looks for any existing encumbrances on the collateral asset through the PPSR database. If an encumbrance exists, the entity with the original encumbrance has priority in receiving payment if the asset is repossessed and sold.
---
## **Credit History**
> ⚠️ This step will still need to be marked as completed even if no credit check is being performed.
> ℹ️ Requires integration with Equifax Apply and/or Illion Credit Reports and incurs a cost.
Clicking the **CREDIT CHECK** button beneath Equifax or Illion, or both, allows users to perform a credit check on the customer:
To run the credit check, make sure the following details are provided in the customer account:
- Full Name
- Date of Birth
- Gender
- Address
- Driver’s Licence Number
Once run, the credit check report will be available in the Document Pane.
---
## **Payment Source**
Click the **Plus** :plus: icon to add the bank account or card the loan’s direct debit repayments will be processed from:
Once the details have been entered, click **SAVE**.
Alternatively, if the subscription is integrated with Illion Bank Statements or Credit Sense and the applicant has provided bank statements for the application, users can add the account details directly from the statement by clicking the **Bank **🏛️ icon:
Using the Illion integration helps prevent human error when manually entering bank details.
> ℹ️ **Tips:**
> ℹ️
> ℹ️ - BSB numbers are always 6 digits.
> ℹ️ - Bank account numbers should not be longer than 9 digits.
> ℹ️ - Most savings account do not allow direct debits, so ensure to use a transaction account.
> ℹ️ - Where there is an 'S' in an account number, only enter the number up to the 'S', for example: 123456**S**1 would be entered as 123456.
---
## **Loan Setup**
> ℹ️ Any loan setup details are limited by the configuration of the loan product being applied for. For example: the loan principle cannot exceed the maximum set during the loan product setup.
### **Loan Structure**
- **Loan Amount**: Enter the loan principle.
- **Loan Term** **in weeks**: Input the length of the loan in weeks.
- **Loan Start Date**: Funds can be disbursed on or after the specified date.
- **First Repayment Date**: The date the first repayment will be processed.
- **Interest Only Payment Period**: To enable an Interest Only Payment Period, first switch the toggle on. Next, enter the **Interest Only Start Date **and **Interest Only End Date **in the appropriate fields. This will set the dates where the borrower will only be making repayments towards the interest of the loan. Note that the interest only period must start on or before the **First Repayment Date**.
- **Repayment Frequency**: Select a frequency from the dropdown box. Repayments will be processed at this frequency from the **First Repayment Date**.
- **Risk Category**: Select a risk category from the dropdown box. This step is optional, if the loan product does not have any risk categories associated users will not be able to select one.
### **Refinance/Consolidate Loans**
> ⚠️ External consolidation will require users to contact the loan provider and finalise the loan settlement with them.
Users can add external loans to be consolidated, and any internal loans already existing within Biz Core that will be refinanced.
The amounts entered here will be deducted from the disbursement amount when utilising the loan disbursement feature. The loan amount must be greater than the total payout amount.
> *For Example:*
>
> *Loan amount: $3,000.00*
> *Internal refinance amount: $500.00*
> *External consolidate amount: $100.00*
>
> *Disbursement amount: $2,400.00*
#### **Internal (Refinance)**
Any open loans can be refinanced upon activation of this new loan.
1. Click **Internal**
2. Select an existing loan from the dropdown
3. Click the **Plus **:plus-icon: icon to refinance:
> ℹ️ Once the new loan is activated, a payment ledger entry will be created for the existing loan balance, and the status of the open loan will be updated to **Refinanced**.
#### **External (Consolidate)**
Add any loans being paid out to external companies here.
1. Click **External**
2. Enter the **Lender Name **and **Outstanding Amount** into the fields
3. Click the **Plus **:app-plus: icon.
Biz Core will now remove the consolidation amount from the applicant's disbursement:
### **Loan Fees**
> ⚠️ The Loan Manager role is required to be able to change the fees.
The fees for the loan will be automatically set based on the default amounts in the loan product configuration. The fees can be adjusted, but only within the minimum and maximum limits defined for the loan product:
### **Save Loan Setup**
Click the **CHECK FOR OPEN LOANS** button, this will display the internal loans set to be consolidated, any remaining unconsolidated internal loans, as well as external loans that are set to be refinanced:
From here users can save the current loan setup by clicking the **SUBMIT **button, confirming their decision to consolidate any existing loans or not:
---
## **Disbursement Method**
In the disbursement method step, users provide the bank account or PayID where the loan advance will be disbursed. There is the option to use the same details as the payment source or specify a different account for disbursement. More information about how [loan disbursements work can be found here](https://bizcore.refined.site/space/BCKB/1857880159/Loan+Disbursements).
Click the **Plus** :plus: icon, then select a source type from the dropdown box:
If a bank account or PayID exists for the customer, the user can select it from the dropdown. Once they have entered the details, click **SAVE**.
---
## **Decision**
Once users have marked the previous steps as Complete :check_mark: they can make a decision on the outcome of the loan assessment. Click **APPROVE**** **:check_mark:** **or **DECLINE**** **:cross_mark::
- **Approve **:check_mark:: A new loan record will be created, the application status will be changed to **Approved**, and all previous steps will be locked. The **Contract** step will be unlocked and ready for further action.
- **Decline** :cross_mark:: The application status will be set to **Declined**. The user will be prompted to provide a reason for the decision in a popup window, this will be recorded in the Application Summary.
---
## **Contract**
### **Sending and Signing Contract**
The contract step will show a summary of the loan application, including any refinanced amounts and the repayment schedule:
Users can view the associated loan contract by clicking **PREVIEW CONTRACT **or click the **SEND CONTRACT** button to email a link to the customer:
> ℹ️ The link to the documents will expire in 7 days.
> ℹ️
> ℹ️ Users can resend the contract at any time by clicking the **SEND CONTRACT** button again. The Contract Sent Date in the Summary will update based on the time it was last sent.
The link will allow the customer to affix their E-Signature to the contract and direct debit agreement:
The Summary will update to show the date and time the contract was signed.
### **Altering Loan after Contract Step**
If any errors were made during the application or loan setup, switch the application status to **Processing **from the Application Summary:
This will cancel the existing loan and unlock the application steps allow adjustments to be made. A new loan will be created when users approve the application reflecting the updated details.
### **After Signing**
Several actions will occur immediately after the applicant signs their loan contract:
- The signed documents will be automatically uploaded to the customer's application and loan record, ensuring they are securely stored for future reference.
- Signed copies of the documents will also be emailed to the customer, providing them with a convenient and easily accessible record of the agreement.
- The application status will transition from **Approved **to **Complete**, indicating that all necessary steps have been completed.
- The loan status will transition from **Contract **to **Ready**, signifying that the loan is prepared for disbursement.
- The payment agreement status will transition from **Pending **to **Authorised**, confirming that the customer has agreed to the terms and conditions of the payment arrangement.
- A ledger entry for the loan advance will be added to the loan ledger
---
## **PPSR Registration**
> ℹ️ Only complete this step when collateral is provided on the loan and has been registered on the PPSR.
Add the PPSR reference into the field and click **SAVE **button and mark as complete:
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# **Step 4 - Activate the Loan**
There are several options in Biz Core to disburse funds and activate a loan, depending on the loan product configuration.
## **Manual Disbursements**
Users can manually disburse loans to applicants externally, follow the [Manual Disbursement](https://bizcore.refined.site/space/BCKB/3074981890/Manual+Disbursement) guide. Once disbursed the loan status will change from **Ready** to **Active**.
## **Bulk Loan Disbursements**
Users can disburse loans in bulk using ABA Files or PayID, follow the [ABA Disbursement](https://bizcore.refined.site/space/BCKB/3073671169/ABA+Disbursement) or [PayID Disbursement](https://bizcore.refined.site/space/BCKB/3074555907/PayID+Disbursement) guide. Once successfully disbursed as part of the bulk action, the loan status will transition from **Ready** to **Active**.
## **Single Loan Disbursements**
Users can advance loans individually with either PayID or ABA Files, follow either guide to disburse. Upon successful disbursement, the loan status will switch from **Ready** to **Active**.
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> ✅ Congratulations, the loan application has been completed and the loan is active.