Toll Free 1-877-506-2744
How can we help?

Setting Expected Renewal Retention for Lines of Credit

Print Friendly Version of this pagePrint Get a PDF version of this webpagePDF

What is Expected Renewal Retention for Lines of Credit?

The Expected Renewal Retention represents the probability that a particular Line of Credit product will be renewed. When pricing an opportunity, this value is used to apply factored renewals to the Income Statement for the Line of Credit.

Effect of Expected Renewals on the Opportunity:

When pricing an opportunity that includes a Line of Credit along and one or more loans with a longer term, the Expected Renewal Retention is used to apply a weighted renewal to the Income Statement. Renewals are factored in for the length of the longest loan specified in the scenario.

Examples.jpg

 

Setting the Expected Renewal Retention for LOCs:

When creating or editing a Line of Credit Product, there is an option in Payment Types to specify the "LOC Expected Renewal Retention".

By default, if you have not previously set this value or are creating a product for the first time, the Expected Renewal Retention is set conservatively at 0%, so no renewals will be factored in for the LOC product.

product edit screen LOC expected renewal rentention rate field

 

For more information about Revolving Lines of Credit, visit Pricing a Revolving Line of Credit

Was this article helpful?
Have more questions?