Create a loan account

To issue a loan, you need to have 2 records for the borrower: their customer record and a vendor record. The vendor record is needed because loan funds are disbursed as bill payments through Accounts Payable, and bill payments can be made only to vendors. So, to disburse loan funds to your customer, you need a vendor record based on their customer record. Both records (customer and vendor) are specified as part of the loan account.

We recommend basing the name of the vendor record on the name of the customer record that it's associated with. For example, if the customer is named C-ABC-Consulting, you could name the vendor V-ABC-Consulting.

Learn about creating customers

Learn about creating vendors

1. Go to Lending Management > All and select Add (circle) next to Loan accounts.
   Alternatively, select Create on the Loan Accounts page (Lending Management > All > Loan accounts).
2. Enter information for the loan account.

   View detailed field descriptions

   The fields and options in the Loan terms section change based on the loan type you select. If you select a revolving (non-amortized) loan type, you can still create an amortization schedule for the loan by selecting Create amortization schedule.
3. Select Save.

   When the loan account is created, a loan origination transaction for the loan origination amount is created in Lending Management, and a corresponding bill is created in Accounts Payable. The exception is if the loan origination amount is zero, in which case these transactions are not created.