In line with our plans to move to real time, Agrolending are pleased to announce that two new repayment types have been added in to our real time capabilities:
Final Repayments
Interest Only Repayment with a PAST due date
Final Repayments:
With the introduction of Final Repayments into real -time users will now have the ability to repay a final repayment as soon as the funds are available via the bank statement. To do so, simply reconcile the bank statement to the Final Repayment and the system will automatically do the rest. Utilising the Bank Statement Date, or the Effective Date if one is input, the system will calculate the amount paid on the date the payment is made and will, if necessary, create either a client margin or shortfall depending on the details input. If the payment is exactly as expected and on the quoted repayment date, or overpaid the system will also automatically close the associated loan. Overpaid repayments will create a client margin which can be addressed by your businesses internal process.
Users Note: Quoting a final repayment assumes that the repayment will be paid in full on the day that it has quoted for. Variations to this process, either overpaying or underpaying, paying late or early or any combinations of the two that do not exactly match what has been quoted will see the system ignore the quoted amount and adjust the repayment according to the amount and date paid. For example, if $1000 is quoted as a Final Repayment to be paid on the 15th March 2025, but the customer pays the $1000 late, this will see the system ignore the quote and correctly calculate the shortfall owing to the additional interest accrued in the days since the payment was due. Likewise, if the customer pays the $1000 early, the system will calculate the client margin owed due to the overpayment of the interest and will close the loan.
Interest Only repayments with a past due date
In line with final repayments, Interest Only repayments (past due date) are also now being handled in real-time. This means that any interest only repayments with a past due date will allocate the repayment to the interest balance of the loan only (none to capital). Additionally, overpaid interest will create a client margin and short paid interest on the repayment will create a shortfall.
The addition on Final and Interest Only repayments to the real-time balances process is just the next step in the process of bringing Agrolending completely into real time, with loan balances updating according to cash movements immediately. Final repayments is in it's final stage of roll out and it is expected that customers will see it in action by Monday.
In other News…
Agrolending wish to advise that we are also adding two new repayment types to the current available options within the system. These two new repayment types will be both system generated and handled by the BATCH system owing to their nature. They are:
Interest Only - Forecast to Repayment Date
Interest Only Forecast to Period End Date
Interest Only Repayments - Forecast to Repayment Date
The addition of Interest only Forecast to Repayment Date allows users to specify that an interest only repayment is due to be paid as at a certain specified date. This repayment type is generally to be used by the system to apply the invoice in advance process or by the month end process to accommodate prepaid interest repayments. When the payment is made and the bank statement is reconciled against this repayment type users will see that only the interest portion of the balance will be affected. This repayment type will see the system utilise the repayment date balance for the interest portion of the loan unless the payment is received after the repayment date at which time the system will use the transaction date. If the amount paid is more than the repayment then the interest accruals will be allowed to go into negative and will work back to $0.00 and onwards from the date of the payment.
Users must be aware that utilising Interest Only Forecast to Repayment Date will only calculate interest until a repayment date if the repayment date falls WITHIN the current period. Should the specified repayment date fall beyond the period end date (eg. month end) then the system will only repay the interest balance up until period end and any surplus will see a client margin create.
Interest Only Repayments - Forecast to Period End Date
This repayment type is utilised as part of a repayment schedule and is used to calculate repayments for when a borrower only wishes to make interest only repayments. This repayment type will create when both the Interest Only and Advance options are selected in the schedule. This will use the period end balance for the period that the repayment falls due in. Interest balances may be sent into a negative balance depending on the transaction date/ amount processed for that period, but will, with time, work their way back to $0.00 and beyond.
Feedback
As we continue to introduce new features, customer communication and feedback is paramount. If you experience any difficulties with any of the real-time repayments processes outlined above or in previous correspondence, if you receive an error that you should not be experiencing, or if it simply doesn’t function as it should per the description in the release notes, we request customers to raise a support ticket immediately. It is only with actual real-time use of the system that we are going to be able to iron out any of the creases. Please rest assured that we have also enabled additional background monitoring to catch issues as they may arise.
As always, if you are new to our real-time roll out program, we recommend you view the Product Updates page on the website and review all the exciting improvements that have been released previously, or click here to be directed there immediately.
We look forward to your feedback, and will be moving forward with continued releases over the coming weeks/ months.
