Advancements directly affect the principal balance on a loan to provide the borrower with early access to a portion of the loan amount. In this article, we'll explain the steps to log an advancement, edit, or fund it, and manage the process within your loan account.

Logging an advancement

To log an advancement on a loan, navigate to Account Setup > Setup Tools inside the loan account. Make sure you are on the Advance/Credit > Advancements tab inside the Setup Tools. Note that this tool is only available if the loan is activated. In this tab, you'll see a list of all the advancements that have logged on the account. To create a new advancement, click the ‘Add’ button, and then enter the following information:

• Title: Title or name for the advancement. This title should distinguish this advancement from any other advancement logged on this account. 
• Application date: Date the advancement will apply on the loan. Since advancements add to the principal balance of the loan, this date is important because interest will accrue on the advancement amount starting on the application date. 
• Amount: Amount of the advancement.
• Category: Enter a category for the advancement. The list of categories can be customized in Settings > Loan > Labeling > Advancement Categories. 

Once you have entered the necessary information for your advancement, click 'Save'.

Next to each Advancement you'll see three options: Edit, Fund, and Delete.

• Edit: Change any of the information you entered on the advancement.
• Fund: Send money to the borrower or a source company. We'll cover this in more detail below.
• Delete: Remove the advancement.

Enhanced funding an advancement

After logging an advancement, click the dollar icon ($) to the right to fund it. This pulls up a window where you'll select how to fund the loan, just like if you were doing it from the Enhanced Funding page. 

Follow the steps below: 

1. Choose whether you're funding the borrower directly or through a source company.  Click the icon associated with your choice, then select a specific borrower or company from the list. 
2. Choose a payment method, along with a payment profile and processor. 
3. Choose the amount and date of the transaction. 
4. You'll get a summary showing all the information you've entered. Click 'Save' to confirm the transaction.