1. PrecisionLender Support Center
  2. Administration
  3. Setting Up Products

Setting Up and Managing Guarantee Types

There are 3 main ways to create Guarantee Types in PrecisionLender:

 

Insert PrecisionLender Standard Guarantee Types

  1. From the Products Pane of the Administration Section, click on the name of the product that you wish to add or edit guarantee types for.
  2. Click the Edit button in the upper left corner.
  3. Click on the Guarantee Types section of the product.
  4. Click the Replace With... button.

 

  1. Click on Standard Set and select the set of guarantee types to populate with, then click Finish. All guarantee types will be replaced with the set you selected.

 

Remember to click Save to keep the changes you have made.

Note

We recommend pricing 5 or more RECENT opportunities utilizing the new Collateral and Guarantee assumptions within the Test Region, to ensure you’re comfortable with our recommendations prior to adopting across other Region(s).

 

Copy Guarantee Types From Another Product

  1. From the Products Pane of the Administration Section, click on the name of the product that you wish to add or edit guarantee types for.
  2. Click the “Edit” button in the upper left corner.
  3. Click on the “Guarantee Types” section of the product.
  4. Click the "Replace With..." button.

 

  1. Click on 'Other Products' and select the product to populate with, then click 'Finish'. All guarantee types will be replaced with the set you selected.

 

Remember to click "Save" to keep the changes you have made.

 

Create Guarantees Manually

  1. From the Products Pane of the Administration Section, click on the name of the product that you wish to add or edit guarantee types for.
  2. Click the “Edit” button in the upper left corner.
  3. Click on the “Guarantee Types” section of the product.
  4. Click the "Add New Guarantee Type" button.

 

  1. Fill in the details as appropriate. Remember to save the product when you are done editing.

 

Allow Single Guarantee Only

  • Select this box to only allow a single guarantee to be applied to the opportunity

Name

  • This is the name that will show up for lenders when selecting a Guarantee Type

Is Government

  • Check this box if the Guarantee is considered a riskless government guarantee

Method

  • The method cannot be changed, it can only be defined when the Guarantee Type is first created
  • Available Method Types:
    • Dollar Amount
      • Lenders will input the dollar amount of the guarantee.
      • This is a fixed dollar amount that will not change over the life of the loan.
    • Percent of Exposure
      • Lenders will input the percentage of the exposure amount that the guarantor is obligated to
      • The amount of exposure, and thus the amount guaranteed, may change over time as the balance of the loan changes.
    • Unlimited
      • The guarantor is obligated to guarantee 100% of the exposure.

Recovery Factor

Origination Expense

  • Here you can choose to add additional origination expenses over and above the standard allocation of costs assigned by the Origination Channel. This might be appropriate if negotiating and underwriting the guarantee will require more time and effort than usual or require specific additional costs to obtain.

Monthly Servicing Expense

  • Here you can choose to add additional servicing expenses over and above the standard allocation of costs assigned by the Servicing Channel. This might be appropriate if monitoring and maintaining the guarantee will require more time and effort than usual or require specific additional costs to service.

Description

  • Here you can enter a brief description of the guarantee type along with any policy guidance as needed

 

Deleting a Guarantee Type

To delete an existing guarantee type simply click the trash can () icon to the left of the guarantee type you would like to remove.

 

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