How to extend a loan once the loan has reached a maturity? Term is to be extended by 48 months.

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Question:

How to extend a loan once the loan has reached a maturity? Term is to be extended by 48 months.

Answer:

As you may know, Margill Loan Manager is probably the most visual software on the market so this kind of change takes a second.
In the payment schedule, simply click on the icon to the right of the window or right click with the mouse > Add > Add Many Lines.

Then specify 48 Payments and the Payment Amount. Add other specifications such as the payment frequency (monthly or other) and when the next payment (after the initial loan end date) is to be paid.

You can also go one step more by selecting your 48 lines, right click and have the payment recomputed to give 0.00 as the final balance or another residual amount.

Even the interest rate could be changed for the next 48 payments (as always with the right mouse click):

Can you walk me through how I would update MLM to the latest version on the Cloud?

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Question:

My Margill Loan Manager is installed on a server on the Cloud.  It wants to have me input a path and so on, and I was not comfortable starting it. It also said to back up MLM data first, and I am not sure if that is necessary for me given that we have the server back-up every night.

Answer:

When all goes smoothly, an update should take 3-4 minutes.

If not already done, download the full update (for existing clients) at www.margill.com/get. Download from the remote server, not from your personal computer. This way, the installer will already be on the Cloud, as opposed to being on your PC.

Run the Margill Installer. It will ask for the path for the software installation. The default setting will usually be the last installation path or the C: drive which is where Margill is usually installed on the Cloud.

The Data (so where the database resides), when installed on C:\Program Files (x86) will usually be under C:\Program Data\MLM_Data.

If it is not there (as it usually should be), then an error will appear, and you will have to find the proper Data path. Search for the “DB” folder using the Windows search tool. Depending on who did the installation, data could be anywhere, so let’s hope the person who installed did a good, clean job!

ALWAYS do a backup. Everything should go smoothly with the update, but never take the chance; do a backup.

You will need basic knowledge of Windows to do this unless your paths are all properly configured.

Can Margill Loan Manager do progressive Advances to my clients?

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Question:

Can Margill Loan Manager do progressive Advances to my clients?

For example, my borrower was authorized for a $100,000 loan but this will be disbursed in stages. So 15,000 one day, 10,000 another and so forth…

Answer:

Short answer… very easily…

You first create a new Record. In this case the first advance of 15k is on 06/06/2017 with regular payments on the first of each month starting July 1. To be repaid over 5 years (60 months).

You can Compute and the following preliminary schedule is created. If we were to leave it at that, we would have 60 payments of $305.59.

For information purposes, let’s enter that the loan is for a maximum of 100,000 (General tab):

Now for the next draws. Do you know when they are to be paid of not? If so, you can enter them on the set Advance dates as Additional Principal (Loan). Notice below there are 2 more Advances, the first for 10k and the second for 25k. We include these as negative amounts to increase the Balance.

I also used the right mouse click to recompute the payments to get 0.00 as my ending balance after 60 months.

So the new payments become 1099.54. You could recompute the payments to give 0.00 at any time or stretch out the loan (add more payment months). As you wish….

If you do not know when the money is to be advanced to your borrower, then you enter the Additional Principal as the information comes in and your recompute your payments (increase them) as more principal is advanced.

Margill Loan Manager – Principal and Interest forecast

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Question: 

I need to break down the due payment for the next fiscal into Due payment interest portion total and Due payment principal portion.

Answer:

If you are on version 4.3 and above (go to https://www.margill.com/get to download) go to Reports > Personalized Reports > Record List (Customized) with Period Breaks.

1) Report template

Click on New, name your report and select the fields from the left.

In the example below I selected the Borrower Business and Loan ID to identify each loan.

Then I selected, under the “Interest” theme, the “Interest Accrued (for period)”. We call it “Accrued” but in fact, for projections it is TO BE accrued. I will rename my column header to “Interest – Forecast” (see below).

Finally, select, under the “Principal’ theme “Principal Accrued (including any transaction on the report Start Date)(for period)” – renamed to “Principal – Forecast”.

Report template is now complete.

2) Actual report

First select the desired Records from the Main window and go to Reports > Personalized Reports > Record List (Customized) with Period Breaks.

This report will break down the principal and interest by month, quarter or year. So you can do short and long term projections – short term for 12 months broken down by month and short/medium/ long term over 5 years.

Now run the report which may take  few minutes (thousands of calculations are done!). You then get results that can be shown in a variety of ways (horizontal, vertical and summaries). You can even show Totals.

Summary view below:

 

If a client makes a payment, how do I feed that into the program?

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Question:

Hi – I’ve been giving your software a trial, and really like it.

The only thing I haven’t been able to do is feed information into the ledger. For example, if a client makes a payment, how do I feed that into the program? How does it know when a payment hasn’t been made? And if someone makes a partial payment, does it automatically adjust the remaining payments?
Answer:
You will notice that when a schedule is created, the “Line status” for each line is “Due Pmt.” You then manage the payments as they are paid (or not paid) by changing this Line status to Paid, Unpaid, Partial payment, etc.

You can do this loan by loan. Or, a much much faster way, is to use the Post payment tool, probably the most important tool in software where you can batch update payments.

Post payment tool to batch update Due payments

The software usually does not recompute payments – it recomputes the interest for the remaining of the loan automatically. Fees can also automatically be added for unpaid payments for example – you create the rules (Tools > Settings > Administrator settings > Column Fees Automatic).
When a borrower does not pay, the loan will show a balance. You could also decide to recompute the payments, or you can extend the loan (after an agreement with the borrower). This can all be done with the powerful right mouse click.

Margill Loan Manager – General Ledger (GL) Accounts

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Questions:

1. In terms of the accounting report and accounting identifiers, are these captured at the borrower level,  or the record level? How is this selection made and where is it used/displayed on the accounting report?

2. In our accounts we split interest accrued and other fees by product type, i.e. a separate GL account by product, is it possible to do this in the accounting report or would we need select and run it for each product type?

Answers:

1. You can have as many General Ledger (GL) accounts as you want in Margill and report for  each. These can be assigned to the Loan (Record), the Borrower and/or the Creditor.

These can be included as Custom fields by checking the “#GL” column. You can even create a scroll menu if there aren’t hundreds of these.

You can populate these very quickly with the Global changes (select Records in the Main window, right click with the mouse).

The GL accounts created are then used in the Accounting Entries report (only one Record has an account below…).

When you run the report, the GL number will show up here:

This detail can then be exported to Sage, QuickBooks, Excel, CSV, TXT. Or you can get a summary – “By Account” tab.

2. Yes you can have a GL account by product type. If each Record (or loan) is for one product type, then you would create a scroll menu for the GL by product type and assign to each Record individually. You can then run one report with all your records and the proper GL number will be assigned for each debit and credit.

How to setup weekly or biweekly payments

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Question:

How to setup weekly or biweekly payments in Margill Loan Manager?

Answer:

When creating a new record, set up the Period of Payments at ”By day(s)” and input 7 for weekly or 14 for biweekly payments.

We also suggest that you setup the Compounding Period to match the Period of Payments.

Typical questions before software purchase – Margill Loan Manager

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Questions:

  • We are a secured lender, our loans are secured against properties. Does the system allow us to input details of the property and loan to value against each loan? How do I do this?
  • Will the system give me an overview of our loan book as a whole?
  • Some clients pay monthly, some clients we deduct the interest payments from the loan on completion. Can I input these options?
  • From an Excel spreadsheet can I input the loan book /data how do I do this /what information is needed?
  • How do I start is there someone I can speak to (I am based in the UK)? Read more