Adding Utilizations to Credit Facilities

A credit facility utilization is a contract opened for banking products attached to the facility. You can add utilizations to a credit facility record when the record has the Approved status.

Follow these steps to add utilizations to a credit facility record:

1. On the Credit Facility page, double-click the desired credit facility with Approved status to edit it.

2. Select the Credit Facility Utilizations tab.

3. Click the Insert button in the Facility Utilizations section to open the Insert credit Utilization page.
   

4. Fill in the following fields:

   • Customer - Select the customer who becomes the owner of this utilization. The list is already filtered to display only the customers entered as participants in the credit facility.

   • Banking Product - Choose the banking product which is the object of this credit facility utilization. The list is already filtered to display only the banking products attached to the credit facility.

   • Contract - You can select an existing contract of the same customer containing the selected banking product where you can attach this credit facility utilization. The list is already filtered to display only the selected customer's contracts that contain that same banking product.
     If no contract is selected, Loan Management automatically creates a new contract for this credit facility utilization.

     NOTE  
     The contract's start date cannot precede the utilization's start date.

   • Currency, Exchange Rate - These read-only fields display the selected banking product's defined currency, respectively exchange rate for that currency.

   • Utilization amount - Enter the amount to be disbursed through this utilization, expressed in the selected banking product's currency.

   • Utilization In Facility Currency - This read-only field displays the utilization amount expressed in the credit facility's currency, calculated using the exchange rate displayed above.

   • Facility Documents - Add any credit facility utilization documents needed in this field, either by dragging and dropping the file, or by clicking the Add file button and selecting the desired file.

5. Click the Save and Reload button.
   After saving the credit facility, other fields of the Insert credit Utilization page become visible and can be completed.

6. Fill in the following fields in the Utilization details section:
   

   • Product Interest - Select the product interest applicable for this utilization. The list is already filtered to display only the interests defined for the selected banking product.

   • Total Interest Rate - This field displays the total interest rate of the utilization, as it was calculated for the selected banking product. You can edit the value.

   • Minimum Interest Rate - Enter a minimum interest rate applicable for this utilization, if needed.

   • Margin - Enter a margin applicable for this utilization, if needed.

   • Reference Rate Date - Select from the calendar the date for the exchange reference rate to be used for utilization amount calculation, when the selected banking product was defined with a currency different from the credit facility's currency.

   • Reference Rate - This field displays the value of the selected exchange reference rate. You can edit the value.

   • Contract Period - This field displays the contract period in days, as it was defined for the selected banking product. You can edit the value.

   • Schedule Type - Select the schedule type applicable for this utilization. The list is already filtered to display only the schedule types defined for the selected banking product.

   • Repayment Due Day - This field displays the day in the month when the repayment is due, as it was defined for the selected banking product. You can edit the value.

   • Installment Method - This field displays the installment calculation method, as it was defined for the selected banking product. You can edit the value, selecting one of the possible values:

     • Actual Period - The first installment should be paid on this month's repayment due date.
     • Next Period - The first installment should be paid on the next month's repayment due date.
   • Current account - Select the current account for disbursing the amount for this utilization. The list is already filtered to display only the bank accounts opened in the facility’s currency for the selected customer.

7. Click the Save and Close button.
   The utilization record is saved in Draft status.
   
   

8. Double-click the utilization and send it to approval by changing its status to Send to Approved.
   

For more details on how to perform a change of status, read the Changing Credit Facility Statuses section.