How can I enter multiple payments and advances in a loan without having to enter them one by one? I have over 100 in one loan. I have the data in Excel.

Q: How can I enter multiple payments and advances in a loan without having to enter them one by one? I have over 100 in one loan. I have the data in Excel.

A: Very easily, in seconds with a simple 4-column Excel sheet.

Go to Tools > Post Payments. On the top of the window, far right, you will see the “Bulk Payment Import” button. Of the two options, choose “Import new payments” (payments can be actual paid payments, upcoming payments, advances (additional principal), etc.)

The window will then show you the required Excel file format with the 3 required data columns and others that are optional:

  • Column A is the loan ID (this can be the MLM ID or your unique ID)
  • Column B is the Date
  • Column C is the amount (always positive)
  • Column D, in this case required since you are importing payments and advances, will specify what the amount is (a payment, what type of payment or an advance)

You can add additional information such as a line comment, a check number, other data, even that the payment should be a fixed principal payment (see the ?).

For Column D of the Excel file, you would specify what the amount is:

A Paid Payment would be a 4 in column D, and an advance would be a 14. If an amount is due but not yet paid, then this would be a 1 (so something in the future, not in the past).

 

Here is a sample Excel sheet with 2 advances (12,000 and 15,000), 5 Paid payments and 10 Due payments in the future:

The result is all good since no errors are shown. Errors would be shown in red with descriptions of whey they are in error (wrong dates, illogical scenarios, loan is not Active, etc.): To import press on “Insert lines”:

 

See also: Importing batch payments in Margill Loan Manager (CSV, Excel)

Can Margill software be used for HOA (Home Owners Association) collections along with the interest calculation?

Q: Can Margill software be used for HOA (Home Owners Association) collections along with the interest calculation?

A: Yes, very easily without needing an agency to do these calculations.

Many law firms and accountants are tasked with collecting HOA assessments and find it time consuming with a risk or error when this is done by hand or in a spreadsheet.

Option 1 – Low volume

Margill Law Interest Calculator can be used to do these calculations when there is a low volume (less than 20-25). You can even import the assessment amounts and dates as well as the payments made with a very simple 2-3 column Excel sheet.

Example of a HOA collection table where assessments are included as well as payments and attorney fees:

Nice need reports can also be produced in PDF formats that show how payments are applied.

Option 2 – Higher volume 

If your volume if greater than twenty or so cases (and can go to the hundreds or thousands), then Margill Loan Manager would be a better solution since all data is stored in a nice-neat database in which assessments, payments, attorney fees and costs can be added in bulk though a spreadsheet. You can also manage payments and collect through ACH payments – so you can actually service the HOA assessments. Furthermore, you can instantly provide your client with balances for all outstanding assessments.

For more information, please contact us at 1-877-683-1815 or by email support@margill.com

 

Total Flexibility in your Payment Schedules

Loan servicing made easy

Completely adapt a payment schedule to your borrower’s needs and real life such as irregular payments, seasonal cashflow, interest-only, principal-only, partial, late, unpaid payments, lump sum, automatic fees, negative balances in intercompany loans, interest rate changes, residual value…

 

How can I see interest that accrued on unpaid payments?

Question:

I have a question regarding interest accruing on unpaid payments. We have a franchise that is working on their cash flow right now and we wanted to give them an updated statement on what is owed to us for their franchise loan. How can I see interest that accrued on unpaid payments? So for example if their payment was due back in March of last year and they want to make a payment. How can I show them the interest that accrued on that payment?

Answer:

This is found in the “Outstanding” columns:

The interest is a very close approximation since uses a slightly different way of calculating interest than the normal method (really not a big difference, so no need to worry about this).

In the reports see under the Outstanding theme:

 

 

Early payoff – How to do this in Margill Loan Manager

Q: How to do an early payoff in Margill Loan Manager

A: For example, the loan term was originally for 5 years or 60 months (so end date was in June 2020). The borrower calls you, the creditor, and wishes to payoff his/her loan early, on October 12, 2018.

Original payment schedule:

 

I first recommend to take a snapshot of the full 60 month payment schedule – this was we have an easy to consult original payment schedule. Click on “Attach”. A PDF will be attached to the Record.

Next change the date to October 12, change the payment to 0.00 so the payoff balance is now shown (64,297.75 in this case). Notice I also changed the 2018-11-01 payment date to 2018-10-13 to see my daily interest on the balance (4.92 per day).

Change the Payment to 64,297.75 (for Oct 12).

You can then delete the next lines that are no longer required (right mouse click).

You could also decide to add extra fees for an early payoff if the contract included this (use Column fees or Line status fees). This will increase the balance of course.

Also, you could create a special payment-type Line status to identify all your early payoffs. Could be interesting for your reports.

If the final payment is late, nothing stops you from changing this final date to enter the true payment date. Extra interest will accrue.

How to obtain the daily interest amount (per diem) in Margill Loan Manager

Q: How to obtain the daily interest amount (per diem) in Margill Loan Manager?

A: This can be added very easily through a simple Mathematical Equation. 

Go to Reports > Equation Management and click on  

  1. Name the Equation
  2. Select the two required fields (balance and interest rate) from the various themes on the left
  3. Add the operators with the  button
  4. Divide by 365 days with the  button
  5. Save

You can now use this simple interest Equation in various reports picking it up in the Equations theme:

Record List Customized:

Document Merge (DOCX., RTF, PDF) for your Invoices and Statements:

Interest-only: Regular monthly interest vs. Exact day interest

Question:

My company does interest-only 12 month bridge loans calculated in two ways.

  1. Payments are based on the number of days in a month with a balloon payment at the end (so payments change depending on the month)
  2. Each of the 12 payments is equal with a balloon payment at the end.

Can these two calculation methods be done in Margill?

Answer:

Yes.

In Simple interest, Margill will usually use the exact number of days in a month and in a year to compute the interest. The Day count would be Actual/Actual (or Actual/365 or Actual/360).

If the interest is to be the same every month, the use the 30/360 Day count which simulates months that are of the same length.

For Compound interest (what is called the Effective rate method – the banking method), there is an extra  calculation method option that calculates using the exact number of days and another that splits payment in equal periods. The Day count does not have to be used to “artificially” simulate the equal periods.

A borrower missed a payment last month. This month he doubles up his payment to compensate. Doubling should get him back on track but I get a higher balance at the end of the loan? Help!

Question: A borrower missed a payment last month. This month he doubles up his payment to compensate. Doubling should get him back on track but I get a higher balance at the end of the loan? Help!

Answer: Your borrower will be CLOSE to back on track but there was accrued interest for the month he missed so this is why you are not back to the same end balance (0.00).

To get the exact payment that should have been paid to compensate, he will have to pay the outstanding interest. An easy way to get the exact payment is to highlight that payment line,  right click and do this:

Can I apply a payment only to principal even if there is outstanding interest?

Question: Can I apply a payment only to principal even if there is outstanding interest?

Answer:

Yes when this advanced feature is activated. In the Trial version, this is not activated by default since a more advanced feature.

To activate, go to Tools > Settings > User Settings > “Options: Interest-only and Fixed Principal” (blue link). The third option will allow you to pay principal first. You can set this as your default or have Margill give you the three options when you are in a loan. I would check “Offer the three option when creating a loan” for maximum flexibility.

Go back to your loan. Go on the payment that is to pay principal only. Right click with the mouse:

This window will appear allowing you to enter the amount of principal to pay back. I wish to pay $1000 in principal in this example:

This window will appear allowing to choose the third option that will pay back principal before paying any outstanding interest. Notice we write “NOT SUGGESTED”. We wrote this because it is not a standard refund order but we will be taking this off since we see in practice that this is in fact used quite often, particularly in inter-company loans.

Now you will see that this payment ($1000) pays principal even if there is outstanding interest.

 

How to enter loan number, Federal Tax ID, set up automatic late fees, create a line of credit, etc.?

Questions:

In Margill Loan Manager:

1) How/where do I enter my loan #? Can I change the identifier number automatically assigned by Margill?

2) Most of my clients are businesses, and I do not see a place to enter the Federal Tax ID number. I would also like to add fields for type of company, state of formation, year of formation.

3) When posting payments, most are not made on the exact due date, so I need to right click and post the payment into the schedule, is that correct?  Also, where can I enter the type of payment and identifier, like the check number?

4) How to set up a Line of Credit account where all the payments are interest-only except the last one

5) How to automatically set up Late Fees?

Answers:

1) How/where do I enter my loan #? Can I change the identifier number automatically assigned by Margill?

A unique identifier is created automatically for each loan. You an also enter your own under Data > General:

And your loan number can show up on top of the loan window (set this up under Tools > Settings):

 

2) Most of my clients are businesses, and I do not see a place to enter the Federal Tax ID number. I would also like to add fields for type of company, state of formation, year of formation.

You can create as many custom fields as you want. You would create these for the Borrower and others for the Loan – you tie the field to the closest – Borrower or Loan (and even Creditor but you may not need these custom fields).

Tools > Settings:

 

3) When posting payments, most payments are not made on the exact due date, so I need to right click and post the payment into the schedule, is that correct?  Also, where can I enter the type of payment and identifier, like check number?

You do not need to right click. You change you Line status column from a Due Pmt to a Paid Late Pmt. This small window will then appear to enter the true payment date – in this example Borrower was supposed to pay on the 1st but paid on the 22nd. The date can also be changed directly in the Pmt Date column.

The Post payment Tool (no screenshot below) allows you to post payments in batches as opposed to one by one. They can be Paid, Unpaid, Late, Partial and you can add the check number and add fees manually if you wish (or change the automatically added fees). Very flexible…

If you did not wish to charge extra interest if the payment was only a few days late, you could have entered the true payment date in the “True Pmt Date (Grace/EFT)” column without changing the “Pmt Date.” Transaction reports would pick up this special date.

You can also add a Comment to each payment line and multiple other elements that you customize.

4) How to set up a Line of Credit account where all the payments are interest-only except the last one

You would first create a Record type called Line of credit (Tools > Settings).

You then create a Record and in the Data tab enter this information. I advanced 50,000 on 9/5/17.

 

Notice “Irregular” payments (a screen will follow allowing you to enter advances and payments if this was an existing line of credit – ignore this window if this is a new line of credit – click on:

Once the payment schedule is calculated (one line schedule at first), you simply add lines at the end depending on whether they are Advances or Payments. Here there was a second $15,000 advance and a $3,000 payment. I also added an Information line in the year 2020 to keep the interest accruing.

You can add or insert line with the right mouse click or with these icons on the far right:

 

When a payment is made, column fees and then interest are paid first, then principal. In the example above, the $3,000 payment will pay principal. You could have had Margill compute the total interest to be paid (right mouse click).

If monthly payments MUST be made by the Borrower to pay interest, then you would have set up a line of credit with Monthly payments (not Irregular) and would have specified that these pay interest. This is a more advanced feature called “Line Behavior.” Let me know if this is what you want, and I can explain this in more detail.

5) How to automatically set up Late Fees?

You can create one or multiple Automatic fees.

Go to Tools > Settings > Column Fees: Automatic. You then select the Line status and create your own rules. You can charge an amount, a percentage of the balance, a percentage of the unpaid portion, etc.