🏛️ Your First Loan

Before originating a loan, make sure you have:

• ✓Borrower Information: Legal name, address, contact details, tax ID
• ✓Loan Terms: Amount, interest rate, term (months), payment frequency
• ✓Approval Documentation: Board resolution, credit committee approval
• ✓Account Setup: General Ledger accounts for loan principal and interest

First, add the borrower to your CRM system:

1. Navigate to CRM → Entities
2. Click "+ New Entity"
3. Fill in the borrower details:
   • Entity Type: Church, Non-Profit, or Individual
   • Legal Name: Full legal name (e.g., "First Baptist Church of Springfield")
   • Tax ID (EIN/SSN): Required for IRS reporting
   • Address: Physical address
   • Primary Contact: Name, phone, email
4. Click "Save Entity"
5. Note the Entity ID (you'll need this for the loan)

Now create the loan record:

1. Navigate to Loans in the main menu
2. Click "+ New Loan"
3. Fill in the loan details:

   Basic Information:

   • Borrower: Select from dropdown (search by name)
   • Loan Purpose: Building, Equipment, Working Capital, etc.
   • Loan Number: Auto-generated or enter custom ID

   Financial Terms:

   • Principal Amount: $100,000.00
   • Interest Rate: 5.00% (annual)
   • Term: 60 months
   • Payment Frequency: Monthly
   • First Payment Date: Select date (typically 30 days out)

   Dates:

   • Origination Date: Today's date (or specific date)
   • Maturity Date: Auto-calculated based on term
4. Review the Amortization Preview on the right side to verify:
   • Monthly payment amount
   • Total interest over life of loan
   • Payment schedule
5. Click "Create Loan"

After the loan is created, you need to disburse the funds to the borrower:

1. From the loan detail page, click "Disburse Funds"
2. Enter disbursement details:
   • Disbursement Date: Date funds are sent
   • Amount: $100,000.00 (full principal)
   • Method: Check, Wire, ACH
   • Reference: Check number or wire confirmation
3. Click "Process Disbursement"
4. The system will automatically:
   • Post to the General Ledger
   • Debit: Loans Receivable ($100,000)
   • Credit: Cash - Operating Account ($100,000)
   • Update the loan status to "Active"
   • Start accruing interest

When the first payment is due, record it in the system:

1. Go to Loans and find the loan
2. Click on the loan to open the details
3. Click "Record Payment"
4. Enter payment details:
   • Payment Date: Date received
   • Amount: (will auto-fill with scheduled amount)
   • Method: Check, ACH, Wire, Cash
   • Reference: Check number or transaction ID
5. Review the Payment Allocation:
   • Principal: (calculated)
   • Interest: (calculated based on accrual)
   • Late Fees: (if applicable)
6. Click "Post Payment"
7. The system will automatically:
   • Apply payment to principal and interest
   • Update the loan balance
   • Post to the General Ledger
   • Mark the payment as "Received" on the schedule
   • Send receipt to borrower (if email configured)