Line Of Credit

Margill Loan Manager (MLM) allows you to follow a line of credit in which money is lent out and repaid at irregular intervals.

Create a new Record with "File" and "New Record". See also Creating the first Record and Data entry screen Basics.

Lets do an example...

On May 16, the line of credit is activated with a withdrawal on the same day of 1500. This could have been our starting principal but instead, we will leave Principal at 0.00 in order to see, in the schedule, each and every withdrawal and refund (including the first one). Below is the Data window with "Period of Payments" set to "Irregular". Minus (-) 1500 could also have been inserted as the first payment amount.

Press on "Compute" to produce a Results Table with only one line.

Enter for this line in the Payment column, the first loan amount of 1500. Minus 1500 should be entered.

A second loan or withdrawal of 2500 is made on June 1st (insert a line and enter as a negative amount).

A third withdrawal of 1750 is made on June 16.

The borrower then refunds 2000 on July 3 (a refund is a positive amount reducing the principal)

and so on...

The schedule may then be saved in the database and updated as time goes on.

You will notice in the window above that Line Status indicates the first three lines as Additional principal (could also have been Withdrawal) and the 4th line as a Paid Payment. See also Line status & Line comment.

Interest automatically recalculated

Compound interest is charged in between each of the payments/refunds. The interest is automatically calculated every day (as provided by the normal actuarial method) even if the compounding period is not daily.

MLM also allows you to choose, since the payments are irregular, simple interest that is compounded upon each payment. See Short & Long periods.