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Commercial Lending Business Model

Calculate

for

Discount Loans

Calculate

for

Interest Loans

Determine

Loan

Type

The loan amount to be disbursed to the borrower is determined based on the type of loan: interest bearing or discounted. Commitment availability always uses the face amount of the drawdown.
  • For interest bearing loans, the amount to be disbursed is equal to the loan amount. Interest will be accrued going forward and will be charged to the borrower, or some third party, on some periodic basis.
  • For discounted loans, the amount to be disbursed is based on the total amount, less the percentage of the discount. Thi unearned discounted amount will be amortized, and interest earning will be credited on a monthly basis. The borrower will pay back the full book value of the loan. 

LIQ82

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