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Using Scheduled Draws and Repays

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Scheduled Draws and Repays are payment types within PrecisionLender that can be used on any loan where funds either need to be advanced or repaid on a variable schedule. These payments are generally used for construction or development loans, but can also be used for any loan where the borrower needs a customized schedule to match a project or stream of cash flows.

 

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Scheduled Draws

Scheduled Draws is a payment type for a loan that will be disbursed to the borrower in multiple draws, and the borrower will make interest only payments.

To set up this type of loan, open an opportunity in PrecisionLender and choose "Scheduled Draws" as the Payment Type.

The schedule and amount of these disbursements can be entered into PrecisionLender in one of three ways.

1. Choose Andi®'s recommended draw schedule

When you’re pricing an Opportunity with a Payment Type of “Scheduled Draws,” you may see that Andi® can set a draw schedule for you.

Andi® uses contextual data including the information in PrecisionLender about similar loans, your bank’s relationship with the client, and the structure of the Opportunity to create a recommended draw schedule. Andi® may suggest a draw schedule less than the full commitment amount. The average utilization is between 80% and 90%, but varies across banks and relationships.

Once Andi® has a recommendation, she presents it in the form of a clickable link in the Draws popup screen.

To open the Draws popup, you can either: 

  • Click the chevron icon (Chevron_icon.png) to the right of “Schedule” on the Opportunity Screen; or
  • Click Andi®’s logo (Andi_Logo.png) in the lower part of the Opportunity Screen and then click the link that says “Based on what you’ve told me, I can set a draw schedule for you.” (shown below)

Andi draw schedule suggestion

 

Within the Draws popup, Andi® will show a link that says “Create a draw schedule based on my recommendation above.”

Andi draw schedule suggestion inside schedule field

 

Click on Andi®’s recommendation in the Draws popup to add her recommended draw schedule to your Opportunity. In the chart on the right side of the Draws popup, the schedule of draws that you added is shown as a solid line and grey shaded area. You can click anywhere on the Opportunity Screen to close the Draws popup.

 

Notes on Scheduled Draws

  • If you add a single draw, and then add a periodic draw after for 100% of the loan's commitment, your total draws may exceed the commitment of the loan. 
  • You can check the Maximum Utilization and the amount Available to Draw at the bottom of the Draws popup at any point.
  • If you specify a draw for a month that already has a scheduled draw, the amount you specify will be added to the value of the draw that was already scheduled for that month.
  • Once you add draws, you can edit the amount by clicking in the field you would like to edit and then making changes.
  • To delete a draw, click on the trash can icon (click the trash can icon to delete) next to the draw that you’d like to remove.
  • You can use the "Clear All" button to remove all scheduled draws.
  • If you change the commitment amount, the dollar amounts of the draws will update to maintain the same percentage.
  • After you add a draw schedule to your Opportunity, you can click the chevron icon (Click the chevron icon to view or edit the draw schedule) to the right of “Schedule” on the Opportunity Screen to reopen the Draws popup and view or make changes to your draw schedule.
  • When you use the "Scheduled Draws" or "Scheduled Draws and Repays" payment type, you can apply fees to the unused portion of the commitment.
    • Click the chevron icon (Click the chevron icon to view or edit the draw schedule) to the right of "Fees" to open the Fees Popup, and use the "Fees on Unused Commitment" field to enter your fees.

 

2. Manually enter each draw

Create or open an opportunity in PrecisionLender and choose "Scheduled Draws" as the Payment Type. Click the chevron icon (Click the chevron icon) to the right of “Schedule” on the Opportunity Screen to open the Draws popup. Click "Add," then "Add Single" to expand the Draws popup and enter your draw schedule.

You have the option to click “Create a draw schedule based on my recommendation above” to add Andi®’s recommended schedule. If you enter any single draws, clicking this link will replace the draw schedule that you enter.

Add single draws on draw schedule

 

To manually enter each draw, in the middle of the Draws popup, type the number that corresponds to the month of the loan that you’d like your initial draw to take place next to the “Month” field. Enter the initial draw amount in the “Draw” field. Click "Add" to add your draw to a table of draws on the left side of the Draws popup.

To continue adding draws, keep entering the number corresponding to the draw month in the “Month” field and the draw amount in the “Draw” field, and click “Add” after each entry. The dollar amount that you add for each draw will be reflected as both a dollar amount and as a percentage of the commitment in the table of draws on the left. Changing the percentage of a draw will change the dollar amount accordingly. When you are finished adding draws, click "Done" to view the schedule you created.

In the chart on the right side of the Draws popup, the schedule of draws that you added is shown as a solid line and grey shaded area. Andi®’s recommended draw schedule is shown as a dashed line. You can click "Add," then "Add Single" again to make changes to your schedule, and you can click anywhere on the Opportunity Screen to close the Draws popup.

 

3. Add periodic draws

Create or open an opportunity in PrecisionLender and choose "Scheduled Draws" as the Payment Type. Click the chevron icon (Click the chevron icon) to the right of “Schedule” on the Opportunity Screen to open the Draws popup. Click "Add," then "Add Periodic" to expand the Draws popup and enter your draw schedule.

You have the option to click “Create a draw schedule based on my recommendation above” to add Andi®’s recommended schedule. If you enter any single draws, clicking this link will replace the draw schedule that you enter.

Periodic draw schedule

 

In the middle of the Draws popup, type the number that corresponds to the month of the loan that you’d like your initial draw to take place next to the “Starting In Month” field. Enter the initial draw amount in the “Draw” field. You can specify the amount to be periodically drawn after the initial draw in the “Then Draw” field, and enter how often the periodic draws will occur in the “Every Months” field. For example, if you’d like your periodic draws to occur monthly, you would enter “1” between “Every” and “Months.” Your periodic draws will continue as scheduled through the month that you choose. Enter the number corresponding to the loan month that you’d like draws to end in the “Through Month” field.

If the "auto" box is checked, the loan amounts remaining after the initial draw will be divided evenly among the periodic months. Click "Add" to add your periodic draws to a table of draws on the left side of the Draws popup and view the schedule you created.

draws4.png

The dollar amount that you add for each draw will be reflected as both a dollar amount and as a percentage of the commitment in the table of draws on the left of the Draws popup. Changing the percentage of a draw will change the dollar amount accordingly. In the chart on the right side of the Draws popup, the schedule of draws that you added is shown as a solid line and grey shaded area. Andi®’s recommended draw schedule is shown as a dashed line. You can click "Add," then "Add Periodic" again to make changes to your schedule, and you can click anywhere on the Opportunity Screen to close the Draws popup.

 

Scheduled Repays

Scheduled Repays is a payment type for a non-amortizing loan that will be disbursed to the borrower at closing and the borrower will repay the loan over a series of payments. The schedule and amount of these payments can be entered in PrecisionLender in one of two ways.

1. Manually enter each repay

Create or open an opportunity in PrecisionLender and choose "Scheduled Repays" as the Payment Type.Click the chevron icon (Click the Chevron icon) to the right of “Schedule” on the Opportunity Screen to open the Repays popup. Click "Add," then "Add Single" to expand the Repays popup and enter your repayment schedule.

To manually enter each repay, in the middle of the Repays popup, type the number that corresponds to the month of the loan that you’d like your initial repay to take place next to the “Month” field. Enter the initial repay amount in the “Repay” field. Click "Add" to add your repay to a table of repays on the left side of the Repays popup.

repays7.png

To continue adding repays, keep entering the number corresponding to the repay month in the “Month” field and the repay amount in the “Repay” field, and click “Add” after each entry. The dollar amount that you add for each repay will be reflected as both a dollar amount and as a percentage of the commitment in the table of repays on the left. Changing the percentage of a repay will change the dollar amount accordingly. When you are finished adding repays, click "Done" to view the schedule you created.

In the chart on the right side of the Repays popup, the schedule of repays that you added is shown as a solid line and grey shaded area. You can click "Add," then "Add Single" again to make changes to your schedule, and you can click anywhere on the Opportunity Screen to close the Repays popup.

 

Notes on Scheduled Repays

  • You can check the Maximum Utilization and the amount left to repay at the bottom of the Repays popup at any point.
  • If you specify a repay for a month that already has a scheduled repay, the amount you specify will be added to the value of the repay that was already scheduled for that month.
  • Once you add repays, you can edit the amount by clicking in the field you would like to edit and then making changes.
  • To delete a repay, click on the trash can icon (Click the trash can icon to delete) next to the repay that you’d like to remove.
  • You can use the "Clear All" button to remove all scheduled repays.
  • If you change the commitment amount, the dollar amounts of the repays will update to maintain the same percentage.
  • After you add a repay schedule to your Opportunity, you can click the chevron icon (Click the chevron icon) to the right of “Schedule” on the Opportunity Screen to reopen the Repays popup and view or make changes to your repay schedule.

 

2. Add periodic repays

Open an opportunity in PrecisionLender and choose "Scheduled Repays" as the Payment Type. Click the chevron icon (Click the chevron icon) to the right of “Schedule” on the Opportunity Screen to open the Repays popup. Click "Add," then "Add Periodic" to expand the Repays popup and enter your repayment schedule.

repays8.png

In the middle of the Repays popup, type the number that corresponds to the month of the loan that you’d like your initial repay to take place next to the “Starting In Month” field. Enter the initial repay amount in the “Repay” field. You can specify the amount to be periodically repaid after the initial repay in the “Then Repay” field, and enter how often the periodic repays will occur in the “Every Months” field. For example, if you’d like your periodic repays to occur monthly, you would enter “1” between “Every” and “Months.” Your periodic repays will continue as scheduled through the month that you choose. Enter the number corresponding to the loan month that you’d like repays to end in the “Through Month” field.

If the "auto" box is checked, the loan amounts remaining after the initial repay will be divided evenly among the periodic months. Click "Add" to add your periodic repays to a table of repays on the left side of the Repays popup and view the schedule you created.

repays9.png

 

The dollar amount that you add for each repay will be reflected as both a dollar amount and as a percentage of the commitment in the table of repays on the left of the Repays popup. Changing the percentage of a repay will change the dollar amount accordingly. In the chart on the right side of the Repays popup, the schedule of repays that you added is shown as a solid line and grey shaded area. You can click "Add," then "Add Periodic" again to make changes to your schedule, and you can click anywhere on the Opportunity Screen to close the Draws popup.

 

Scheduled Draws and Repays

Scheduled Draws and Repays is a payment type for a loan that will be disbursed to the borrower in multiple draws, and the borrower will repay the loan over a series of payments.

When you choose the "Scheduled Draws and Repays" payment type, you can see both the "Draws" and "Repays" tabs after you click the chevron icon (Click the chevron icon) to the right of “Schedule” on the Opportunity Screen to open the Draws and Repays popup.

For details on how to add Draws or Repays, see the steps outlined in Scheduled Draws and Scheduled Repays.

draws_repays11.png

 

After you enter your draws and repays, the schedule of draws and repays that you added is shown as a solid line and grey shaded area in the chart on the right side of each tab. You can click "Add," then either the "Add Single" or “Add Periodic” option that you chose before to make changes to your schedule, and you can click anywhere on the Opportunity Screen to close the Draws and Repays popup.

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