When you create a purchase order in Fairways Debt, a default index is set for the loan orders which will be created in that purchase order.
However, you can define more indexes for these loan orders.
Prerequisites
- Contact your Finance Active consultant to:
- Enable the Purchase Order transaction type
- Associate your user with the relevant role to be able to create purchase orders
Navigate to the Debt & Derivatives Application
- Log in to your Fairways Debt account.
- Select a customer account.
- Navigate to Applications
> Debt & Derivatives.
Add an Additional Index to a Loan Order
- Open a purchase order either in the actual or the draft portfolio.
- Navigate to Overview.
- Click Add Index.
- Complete the form with all relevant details.
Note: Fields marked with an asterisk * are mandatory.
| Field | Description |
|---|---|
| Index |
Name of the index used to calculate the rate value, e.g. FIXED for fixed rate. Note: The field beside displays depending on the index selected. |
| Interest Rate |
Fixed rate value in percentage. Note: This field only displays for fixed indexes. |
| Initial Interest Rate |
Initial rate of the custom index. Note: This field only displays for the custom index. |
| Spread | Spread (or margin) value in percentage. |
| Day Count | Used to compute the day fraction of an interest accrual period. |
| Frequency | Frequency of the payments. |
- Click Apply to add the index.
The additional index for loan orders displays. When the borrower creates a loan order in that purchase order, this index is then available in the creation form.
Note: The list of indices shows a column named “Currently Used” which indicates whether the index has already been selected in a loan order or not. An index being used in a loan order can neither be modified nor deleted.