Create a Lease

A lease is a debt transaction subscribed by an entity with one counterparty (the lender) at a given interest rate. Its details include: the principal amount, the interest rate, the repayment date, the rent, etc.

Leases have one initial drawing, equal to the loan principal, an interest payment schedule and an amortization schedule. The related periods, payment dates, interest calculations and amortization modes can be simple or complicated.

Navigate to the Debt & Derivatives Application
  1. Log in to your Fairways Debt account, e.g. https://login.financeactive.eu/.
  2. Select a customer account.
  3. Navigate to Applications Applications.png > Debt & Derivatives.
Create a Lease
  1. Click Add Transaction > Lease > Lease.

DebtDerivatives_Portfolio_Transaction_Lease_EN.png

  1. Complete the form with all relevant details.

Note: Fields marked with an asterisk * are mandatory.

Field Description
Reference Code Unique reference of the transaction. Identifies the transaction in the portfolio. The reference must be unique among all the entities managed in the account.
External Reference Code Used by external systems to identify the transaction. Used when transactions are imported from or exported to another system.
Lease Type Financing or simple.
Principal Principal amount of the loan.
Residual Value Residual value of the principal.
Currency Currency of the principal amount.
Borrower Borrowing entity in the system. Only entities in the current organization can be managed by the current user.
Lender Can be either internal (an entity in the system) or external (a commercial bank).

DebtDerivatives_Lease_Create_Transaction_EN.png

Field Description
Trade Date Date at which the transaction has been traded. From that date, the system takes the transaction into account as an item of the portfolio.
Start Date Unadjusted start date of the transaction.
First Roll Date Unadjusted date of the first payment (useful when the first period is a long or short stub).
Maturity Date Unadjusted maturity date of the transaction.

DebtDerivatives_Lease_Create_Dates_EN.png

Field Description
Rent Type

Rent mode.

Note: Additional fields to complete display depending on the type selected.

Rent Value Rent value. 
First Rent Value Value of the first rent, if different from the rent value. 
Last Rent Value Value of the last rent, if different from the rent value. 

DebtDerivatives_Lease_Create_Rent_EN.png

Field Description
Frequency Frequency of the payments.
Adjustment Adjustment mode for the interest calculation. The nominal start and end dates of the accrual period will be adjusted accordingly before computing the interest amount.
Payment Date Adjustment Adjustment mode for the payment date.
In Advance / In Arrears Payment conditions. 

DebtDerivatives_Lease_Create_Payment_EN.png

  1. Enable Show Details after Validation to automatically open the new lease profile once created.
  2. Click OK to create the lease.

The new lease displays in the draft portfolio.

DebtDerivatives_Lease_Created_EN.png

Adjustment

Adjustment modes define how the system rolls dates in case of holidays in the calendar.

Field Description
Unadjusted Not rolled.
Preceding Rolled to the previous business day.
Following Rolled to the next business day.
Modified Preceding Rolled to the previous business day, only if that day occurs in the same month. Otherwise, rolled to the next business day.
Modified Following Rolled to the next business day, only if that day occurs in the same month. Otherwise, rolled to the previous business day.
End of Month (unadjusted) Rolled to the last day of the month.
End of Month (preceding) Rolled to the last day of the month, then adjusted to the previous business day.
Modified Following (year)

Rolled to the next business day, only if that day occurs in the same year. Otherwise, rolled to the previous business day.

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