LoanPro is a very advanced loan servicing platform. As such, we give many options for setting up, servicing, and closing loans that aren’t available in other software packages. Some of the terms we use will therefore be unfamiliar to many. This article should be used as a glossary and will help with unfamiliar terms. If there are words or phrases you encounter in the software or this help system that are unfamiliar and not covered here, please leave them in the comments of this glossary article so we can make sure the list is up to date.
Activate/Activated – This refers to a kind of “turning on” of a loan or lease. Activating an account will cause the calculations on the loan to take into account actual dates and payment history. An account that hasn’t been activated exists in an abstract piece of time with sense of past or future.
Agent User – This refers to users that have access to a tenant (company-level account) inside of LoanPro.
API – API stands for application programming interface and provides a way to send and receive information from a software application. The purpose of this is so that programs written in different programming languages can communicate with each other and so that data can be safely sent and received from a proprietary application without having to give away access to the application’s code base.
Between Periods – A method of specifying how interest accrues, when that interest comes due, and how payments apply to the loan when payments are not made exactly in accordance with the loan schedule. In this method, payments made on dates other than schedule payment dates can affect the interest accrual in the next loan period depending on how you choose to have payments apply.
Between Transactions – A method of specifying how interest accrues, when that interest comes due, and how payments apply to the loan when payments are not made exactly in accordance with the loan schedule. In this method, if payments aren’t made exactly on payment due dates, payments will usually apply to all the interest that has accrued since the previous payment first and then to loan principal.
Curtailment – A curtailment is a payment on a flooring loan.
Customer – This refers to borrowers, lessees, or potential borrowers or lessees inside of LoanPro.
Discount – This refers to an amount of principal that was withheld by the lender when a loan was funded. This amount is by definition part of the principal balance on a loan before it is paid, but becomes a revenue to the lender when the principal is paid back.
Interest Application – In LoanPro, the interest that a payment will apply to can be calculated in one of two ways. It can either be the total interest that will accrue in a payment period (between periods), or it will be the amount of interest that accrued since the last payment was made (between transactions). It may seem like these two concepts are the same, but they will only be similar if customers make payments on the correct due dates in the correct amounts. If a borrower pays early with a between periods interest application for example, all the interest from the payment period will still be due. In the same scenario, but with a between transactions interest application, less interest will be due because only the interest accrued since the last payment will be due.
Merchant Services Provider – This refers to any company that provides payment processing services for another company through credit/debit card, eCheck, ACH, or EFT.
Next Payment Due Date – This refers to the next date on which a loan or lease payment will come due. This date is never in the past. It is often assumed that this refers to the first payment or the last payment that was missed on a loan or lease.
Payment Method – This is the means used to make a payment (e.g. cash, credit card, check).
Payment Profile – This is a specific credit/debit card or bank account. So, while credit card is a payment method, Wells Fargo Visa 9999-9999-9999-9999 is a payment profile.
Roll Payment – This refers to using the payment equation to solve for one or more loan terms by entering a specific payment amount.
Roll Schedule – This refers to a customized payment schedule where payment periods or groups of payment periods can have different payment amounts and interest rates.
Tenant – A tenant is a company-level account inside of LoanPro software. A single company can have more than one tenant inside LoanPro.