Accounts: Vehicle - Leveraged Financing
Used to track the leveraged financing for this vehicle (or collateral). This is typically used for leases only.
Layout / How To
Leveraged financing is when you borrow money from a financial source to fund the collateral that you are leasing or selling.
To set up leveraged financing, you must first make it active. Use the deal date as the status date when you activate it. Next, you must select a bank from the ... button in the Bank Information box. Banks are set up in Leveraged Financing Bank Maintenance.
Terminating leveraged financing is done by marking the active as No, and setting the date to the date on which you paid off the bank.
The Start Date is the date of the bank note. Interest will start calculating from this date.
The Day of Month Due is the day of the month on which payments are due to the bank. Use 31 to mean the last day of the month.
The First Payment Date is the date on which the first payment is due to the bank. This may sound obvious, but this date must agree with the Day Due field. If the two fields do not coincide, then the calculations & reporting will not work correctly.
There are two types of calculations: Standard and Even Principal (with Balloon). Select the one that matches your loan. Depending on which type you select, you will get one of two boxes.
The End date is calculated for you, based on the date of 1st payment and the term.
Even Principal Loan Calculation Type
Fill out the Loan Amount, Term, Interest Rate, and Monthly Payment. ALMSys will allow you to use a varying interest rate as provided by the bank. This rate is set up in Leveraged Financing Bank Maintenance.
Click the Calculate button. As a result, the loan balloon (End Value) and Payback Factor will be calculated for you. (The payback factor is an older way of calculating payments.)
Standard Loan Calculation Type
Fill out the Loan Amount, End Value, Term, and Interest Rate. ALMSys will allow you to use a varying interest rate as provided by the bank. This rate is set up in Leveraged Financing Bank Maintenance.
Click the Calculate button. As a result, the Monthly Payment will be calculated for you.
XSellerator Termination Ledger Values
This is used to assist with termination calculations for leveraged financing. Follow the onscreen instructions. Principal and interest values will be passed through the leveraged financing interface to XSellerator.