Working with a Credit Line
Credit Line. User Guide
1. Description
A credit line is a legally formalized obligation of a company to provide a client with credit in a certain amount over an agreed period of time.
Credit lines are divided into two types:
- Non-revolving – funds are issued in parts, as needed. There is a limit on simultaneous debt.
- Revolving – provides for the restoration of the company's debt limit if the previously issued credit is repaid.
You can regulate the cash flow and, if necessary, increase the limit in case of an acute shortage of funds.
2. Creating a Credit Line
To create a credit line, you need to create a client. Then, in the client section, click the "Create" button and select "Credit Line".
The credit line creation screen opens.
The following settings are available to the user:
- Name – The name of the credit line (the name must be unique).
- Client – Specifies the client for whom the credit line will be available.
- Creation Date – The date the credit line was created.
- Availability Date – The date until which it is possible to create new loan applications.
- Credit Line End Date – this field is not functional and is used in reports.
- Credit Line Type - Non-revolving/Revolving
Explanation:
Non-revolving – funds are issued in parts, as needed. There is a limit on simultaneous debt.
Revolving – provides for the restoration of the company's debt limit if the previously issued credit is repaid.
Credit Line Amount – The established limit of the credit line.
Collateral – The ability to attach collateral (optional).
Note: If the application creation date is greater than the Availability Date, the user will receive a corresponding notification about this.
It is possible to attach collateral to a credit line. This collateral will be automatically attached to all applications/contracts created within this credit line. There can be multiple collaterals.
3. Working with a Credit Line
After creating a credit line, you can create a loan application within this line. To do this, click the "Create Application for Credit Line" button.
An application created from a credit line, and subsequently a contract, has an indication of which credit line it belongs to.
On the credit lines screen, there is a list of applications/contracts that were issued within this line.
Applications created from the client (not within a credit line) will not be displayed in the active credit line and will not fall under its restrictions.
A credit line can be edited. You can increase or decrease the validity period and available amount. To do this, click the "Edit" button, change the required parameters, and click "Save".
To delete a credit line, you need to delete all applications and contracts that were created within this line.
4. Credit Line Types
Non-revolving
Funds are issued in parts, as needed. There is a limit on simultaneous debt.
Example: A credit line has a limit of 100,000.00 rubles. That is, within this line, the client can open, simultaneously, before the line availability date, several contracts whose amount cannot exceed 100,000.00. If you try to exceed this amount, the user will receive a notification: You can issue no more than [amount specified] to this client under the credit line
Revolving
Provides for the restoration of the company's debt limit if the previously issued credit is repaid.
Example: A credit line has a limit of 100,000.00. The client takes the first loan for 100,000.00 and after some time makes a partial repayment of 50,000.00. Now they have the opportunity to take another loan (before the line availability date) for 50,000.00.
When creating a new loan application, the remaining limit is automatically calculated, and if an attempt is made to exceed it, the user will receive a corresponding notification, and the application will not be created.