---
title: "How to Manually Create a Loan"
canonical: "https://bizcore.refined.site/space/BCKB/2004156427/How%20to%20Manually%20Create%20a%20Loan"
format: markdown
---
> Macro (toc)
# **Overview**
Biz Core will automatically create a [loan record](https://bizcore.refined.site/space/BCKB/1783890004/Records+%26+Statuses#Loan-Record) after a user [assesses and approves](https://bizcore.refined.site/space/BCKB/1779826689/Loan+Application+Process) an application or [lead](https://bizcore.refined.site/space/BCKB/1776975877/Lead+Management) received through the [customer-facing form](https://bizcore.refined.site/space/BCKB/1776615437/Application+Form+Setup), however subscribers can also manually input new loans whenever required. With the creation wizard users can skip the origination process and immediately create a loan record to begin the servicing life-cycle.
> ℹ️ Subscribers must still configure their [Loan Products](https://bizcore.refined.site/space/BCKB/1776680977/Loan+Product+Setup) before they can manually create a loan in Biz Core.
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# **Loan Creation Setup Wizard**
To manually create a new loan, use the sidebar to navigate to **Workspaces → Loans**:
From here, hover over the **Actions ≡ **icon on the bottom right and select **Create New Loan **to launch the creation wizard:
Users can now follow the steps in the creation wizard to manually create a new loan.
---
# **Step 1 - Select Customer Type**
Use the radio buttons to select between a new customer or searching for a customer record that already exists within Biz Core:
## **Loan for a New Customer**
To create the loan for a customer that does not already have a record in Biz Core:
- **Customer Type**: Select from the dropdown menu if they are an individual or a business:
Based on the user’s selection, relevant fields will become visible. Input the individual or business customer’s information then click **NEXT** to continue.
> ℹ️ Although Biz Core creates its own unique reference numbers for each record, users can also add an ID into the External Reference field while entering a customer's details. This will be stored along with their personal details in the record, useful if they have an ID from a different CRM.
## **Loan for an Existing Customer**
To add a customer that already exists as a record in Biz Core, start typing an individual’s first-name, last-name, full-name or customer reference, alternatively for a business begin entering their company name, trading name or customer reference. The system will start searching as users enter these details and provide a list of results in a dropdown menu, users select the correct result by clicking on it:
After the existing customer has been located users click **NEXT** to continue.
# **Step 2 - Payment Details**
Users are required to select how the loan repayments will be serviced by clicking an icon:
- **Bank Account**: Choosing this option will require users to input the details of the customer’s bank account that will be debited through Biz Core’s inbuilt facility. If the loan is for an existing customer and they already have a bank account stored in the system, users can select it from the **Use an Existing Source** dropdown menu.
> ℹ️ Only certain kinds of bank accounts support direct debit, be sure to [confirm that the account entered meets the requirements](https://bizcore.refined.site/space/BCKB/1955430408/What+Type+of+Accounts+Can+Be+Used+for+Direct+Debit%3F).
- **Credit/Debit Card**: Selecting this option will not require users to manually enter the customer’s card information. Once the loan creation is finalised the customer will receive an email and SMS with a link to provide their card details through a secure gateway, Biz Core will then debit the loan repayments from their nominated card.
> ℹ️ Card payment integration is required. To enable this feature, please contact [support@fsoft.net.au](mailto:support@fsoft.net.au)
- **Manual**: If the customer will be manually making repayments, either by transfer to a bank account external to Biz Core, through BPay, cash, cheque or other arrangements, users should select this option.
> ℹ️ Consult the [How Manual Loan Repayments are Handled](https://bizcore.refined.site/space/BCKB/2009628719/How+Manual+Loan+Repayments+are+Handled) for more information.
After selecting the appropriate repayment option and providing the required information, users click **NEXT **to continue.
# **Step 3 - Loan Details**
Users configure the loan during this step, each field is explained below:
> ℹ️ Any loan details are limited by the configuration of the loan product being used. For example: the loan principal cannot exceed the maximum set on the loan product.
- **Loan Product**: Select the loan product that will be used as the framework for this loan. Users can consult the [Loan Product Setup guide](https://bizcore.refined.site/space/BCKB/1776680977) if the appropriate loan product is not already configured.
- **Loan Reason**: Use the dropdown menu to provide a reason for the loan, and use the optional details field below to provide additional information about the reason for the loan.
- **Add Tag**: Users can add a tag to the loan in order to categorise the record. These are searchable from the filters widget in the loans workspace, so users can apply specific tags to assist their workflow.
- **Loan Amount**: Specify the dollar amount of the loan principal.
- **Loan Term**: Input the loan term in weeks.
- **Loan Start Date**: Users can input the start date of the loan, or click the **Calendar **📆 icon to launch the date picker and select one. Funds can only be disbursed on or after the specified date.
- **First Repayment Date**: Users can input the date of the first repayment or click the **Calendar **📆 icon to launch the date picker and select one. This will configure the date on which 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 repayment frequency from the dropdown menu, each subsequent repayment after the first will be processed at the chosen intervals.
- **Risk Category**: If there are risk categories configured on the selected loan product, users will be able to select the applicable one here from the dropdown menu.
- **Loan Fees**: Any fees that have been applied to the loan product are displayed here, along with their minimum and maximum amounts. The field will be pre-populated with the default percentage or amount value, or users can adjust them if required.
## **Consolidate Loans**
Users can add external loans to be consolidated, and any internal loans already existing in Biz Core that can be refinanced.
The amounts entered here will be deducted from the disbursement amount if the loan disbursement feature is being utilised. The loan amount must also 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 Consolidation**
Any open loans can be refinanced upon activation of the new loan. Users can click the **Internal **button then select an existing loan from the dropdown, and click the **Plus** :plus: icon to refinance:
If there are multiple internal loans each of these can be added by following the same process. The **Internal **button will only be available if there are any existing loans in Biz Core for the borrower.
> ℹ️ Once the new loan is activated, a payment ledger entry will be created for the existing loan balance, and the status of the existing loan will be updated to **Refinanced**.
### **External Consolidation**
Users can add any external loans being consolidated here by clicking **External **then entering the **Lender Name** and **Outstanding Amount **into the fields, before clicking the **Plus **:plus: icon:
Users can add multiple external consolidations by continuing the same process. External consolidation will require the subscriber to contact the loan provider and finalise the loan settlement with them.
Once the user has finalised the **Loan Details** they can click the **CHECK FOR OPEN LOANS **button:
The system will display a summary of any internal loans set to be consolidated, any remaining unconsolidated internal loans, as well as external loans that are set to be refinanced.
If the configuration is correct the user can click **NEXT **to proceed to the final step.
# **Step 4 - Loan Summary**
The Loan Summary step displays a rundown of the loan, fees, payment and customer details. Prior to finalising the loan the user has several options:
- **Send Loan Contract**: Checking this box will automatically send the contract supplied in the loan product to the borrower after the loan is created. Leave unchecked if the contract is not required to be signed through Biz Core’s E-Signature facility.
- **Send Direct Debit Authorisation**: Checking this box will automatically send Direct Debit Authorisation forms to the borrower after the loan is created. Leave unchecked if the authorisation is being managed externally to Biz Core, such as through verbal recording. This box is only available when the user selects Bank Account during **Step 4 - Payment Details**.
- **Requires Loan Disbursement**: Checking this will create the loan without the disbursement recorded in the ledger, allowing users to use [Biz Core’s disbursement features](https://bizcore.refined.site/space/BCKB/1857880159/Loan+Disbursements) to fund it, or record a manual disbursal at a later date. Leaving this unchecked will add a ledger entry for the disbursal on the loan start date.
Users can check either of these options to confirm they want to use these features on the loan they have created:
Once these options have been checked or left unchecked and the user is satisfied with the loan configuration they can click **CREATE LOAN **to complete the process, or **PREV** to return to the previous page.
From here depending on the loan configuration, several actions may occur:
| **Loan Configuration** | **Initial Status** | **Next Steps** |
| --- | --- | --- |
| Send Loan Contract and Requires Loan Disbursement | Contract | Borrower signs contract (consult **Contract** section below), then [user disburses](https://bizcore.refined.site/space/BCKB/1857880159/Loan+Disbursements) funds. |
| Send Loan Contract only | Contract | Borrower signs contract (consult **Contract **section below). |
| Requires Loan Disbursement only | Ready | User is required to [disburse the funds](https://bizcore.refined.site/space/BCKB/1857880159/Loan+Disbursements). |
| Neither Send Loan Contract nor Requires Loan Disbursement | Active | The loan creation is complete, a ledger entry will also be created for the loan advance. |
Borrowers who are servicing the loan through through card payments will be sent an email and SMS with a link to a secured payment gateway to enter their details. More information is available in the **Card Details** section below.
Additionally, if the borrower is servicing the loan through direct debit the Agreement Record associated with the loan will only switch to Authorised and be debited after the [agreement forms have been signed or the user manually authorises the source in the Agreement record](https://bizcore.refined.site/space/BCKB/2009366547/Types+of+Payment+Agreement%C2%A0Authorisations). These will be included in the same link the customers are provided if a contract is being sent or if no contract is being sent the borrower will receive just the DDA forms if the **Send Direct Debit Authorisation Forms** box is checked during **Step 4**. If the user wants to service the loan through direct debit after the loan is already configured, they can [update the payment source](https://bizcore.refined.site/space/BCKB/1953693697/How+to+Update+Payment+Details) on the Agreement Record.
# **Contract**
If the user checked the **Send Loan Contract** option during **Step 4 - Loan Summary **the borrower will receive an email and SMS with a link to sign their loan contract. In addition, if they are servicing the loan through their bank account, the same link will contain a Direct Debit Agreement form:
## **After Signing**
Once the borrower checks the boxes, consenting to the document/s and affixes their E-Signature, several actions will immediately occur:
- 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.
- If the user check the **Requires Loan Disbursement **box during **Step 4 - Loan Summary** the loan status will transition from **Contract **to **Ready**, signifying that the loan is prepared [for disbursement](https://bizcore.refined.site/space/BCKB/1857880159/Loan+Disbursements).
- If the loan was created without checking **Requires Loan Disbursement **the loan status will transition from **Contract **to **Active**.
- if the loan is being serviced through bank account direct debits the link to the contract will also contain a direct debit agreement form. 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.
- If the borrower is servicing the loan by card they will receive an additional email and SMS with a link to a secured card gateway to enter their payment details. More information can be found in the **Card Details** section below.
# **Card Details**
In any configuration cases where the borrower is servicing through card payments the system will automatically send a link to a secure payment gateway for the customer to provide their card details.
> ℹ️ Card payment integration is required. To enable this feature, please contact [support@fsoft.net.au](mailto:support@fsoft.net.au)
After providing their details through the gateway the payment agreement status will transition from **Pending **to **Authorised**, confirming that the customer has agreed to the terms and conditions and authorised their card to be debited.
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