LoanPro’s change due date feature allows you to  adjust the day of the month when a loan's payments are due. In this article, we will explain how to change due dates for both installment loans and line of credit. For fully restructuring an account’s amortization schedule, see our Comprehensive Loan Recasting article. 

Changing payment due dates for individual loans

You can manually change due dates for an individual loan through Setup Tools or automate the process through Automation Engine. You can also set up automatic charges that will apply to loans whenever their payment dates are changed.

It is important to note that this tool is only available when the loan is activated. You can change the first due date on the loan, but be aware that this will affect the loan’s calculations , including the APR calculation set at activation. If you wish to see the effects in real time, please use the ‘Setup Terms’ tab to inactivate the loan and change the first due date. If you proceed this will have the “true” APR differ from the quoted one as shown on the ‘Setup Terms’ tab.

Setup tools

Follow the guide below to complete a due date change:

The instructions and field options are further outlined below:

To change an account's due dates, navigate within a specific loan to Account Setup > Setup Tools > Change Due Date. Click ‘Add’ to change a due date.

The following options are available in this window: 

• Due Date to Change: Select from all the payment due dates on the account. Select the due date that you want to change. There are two hyperlinks under this option: Next and Recent Due Date. 
  • Next: Automatically select the next, future due date. 
  • Recent due date: Select the most-recent, past due date.
• Next Due Date: Modify the selected due date  from the ‘Due Date Change’ dropdown. You can do this by directly entering a date and selecting a date using the date picker, or clicking on one of the hyperlinks under the field (+30 | +45 | +60 | +90). Clicking these hyperlinks will set the due date to the specified number of days in the future.
• Charge Fee: Choose whether to charge a fee to change the payment due date. If you select ‘Yes’, you will have some additional fields shown: amount, charge application date, charge fee type, and memo. Once you have entered the change due date information, click 'Save'. Click 'Yes' to change the due date.

If you have changed due dates on the account, they will appear on the main ‘Change Due Date’ screen. You can click the delete icon to revert back to the original due date.

Automation Engine

Changing due dates with Automation Engine involves setting up a rule. Once your accounts meet the criteria for that rule, due date changes will be adjusted automatically. To access this setting, navigate to Settings > Loan > Automation Engine. From here you can either click ‘Add’ to create a new rule or edit an existing rule by clicking the edit icon to the right of an individual rule. In this window, choose ‘+ New Action’, then ‘Change Due Date’ from the ‘Rules Applied Action’ dropdown. 

There are three fields you'll need to fill out:

• Due date to modify: Choose either the next due date or the one after.
• Base date to evaluate changes: Specify the new due date. Here, you select a date (like the current date or a future due date), and the system will add the ‘Modify Base Date By’ amount to arrive at your new due date.
• Modify base date by: Determine how far ahead of your ‘Base Date to Evaluate Changes’ the new date will be. You can choose from presets (like one month or sixth months) or select a custom number of days.

If you want to evaluate the rule before it would normally run in daily maintenance, you can manually trigger the rule evaluation by clicking the three dots on the right. 

Charges

If you decide to charge a fee when a due date is changed on a loan, you can set up defaults for the options listed when you select ‘Yes’ for the Charge Fee. To do this, navigate to Settings > Loan > Charges > Change Due Date. Click 'Edit' to enter in the fields for the due date charge.

The charge options are:

• Due date fee enabled: Enable the change due date fee, which you will be prompted to charge at the time a due date is changed. This will load the relevant charge fields in the ‘Change Due Date’ window that are pre-populated with the defaults you already set. 
• Due date fee amount: Dollar amount of the fee.
• Due date fee memo: Any information you want to add about the fee.
• Charge types: Type of charge you want to assign to change due date charges.

Once you have entered the due date charge, click 'Save'.

Changing statement and due dates for line of credit

On a line of credit account, statement dates indicate the end of one billing cycle and the start  of another. The due date marks the point when the borrower is required to make a minimum payment from the recently-closed billing cycle. LMS offers the ability to change both of these dates after the initial setup. 

Within the line of credit account, navigate to Tools > Change Statement/Due Date. The main section of the page is a table showing any adjustments that have already been logged on this account. Above that, you'll see two filters:

• Date: This lets you filter by the apply date of the adjustment. There are a number of preset time ranges (This Week, Year to Date, etc.) or you can enter a custom range.
• Type: By default, the page will show any adjustment, but you can filter it down to either statement date adjustments or due date adjustments.

On the table, each entry shows a description of the change, the type, the apply date, the original date, and the new date. Clicking the arrow on the right will expand more information, showing you the author and when the change was logged. From there, you can also edit or delete an adjustment.

To change a date, click the ‘Add Adjustment’ button in the top right. From there, follow the directions below for either due dates or statement dates.