Creating a funding source

A funding source is the debt or equity contributing to the capital stack used to fund a deal. There can be a single source or multiple sources of funds. There are various types of funding sources, such as loans, investment capital and tax credits.

Note: Before creating a funding source, ensure that:

• Full access permission is provided to the Deal Management:

• Portfolio Page & Deal Creation

• Deal Details

• Deal Overview

• Capital Stack

• A deal is created

To create a funding source, perform the following steps.

At the top-left of the page, click Portfolio.

On the Portfolio page, click Deal ID or click View for the deal for which you want to create a funding source.

On the left navigation menu, click Capital Stack.

On the Capital Stack page, click + Add funding source.

On the New Funding Source page, in the Funding Source Details tab, enter the following information.

Field	Description
Classification	Classification types such as Debt, Equity, and Other. This field is mandatory.
Type	Funding source types that are added in the Field Configuration. This field is mandatory.
Primary Source?	Specifies whether the funding source is the primary source for reporting. This option is mandatory.
Name	A funding source name. This field is mandatory.
Amount	A funding amount. This field is mandatory.
Capital Provider	An entity or individual who supplies financial resources to businesses, projects, or individuals. This field is mandatory and default to the organization name that the user is provisioned to.
Account Number	A unique identification number within a bank or lender that is used to reconcile interest statements with the loan agreement and is an essential component for tracking and audit purposes.
Additional Reference ID	An additional reference ID for the funding source loan.
Description	A funding source description.
Note: The values for the following fields apply to Debt sources only.
Initial Funding Amount	The initial capital funded by the capital provider.
Closing Date	The date when all terms are settled and a closing agreement is made between the capital provider and borrower.
Maturity Date	The date when the principal amount of a loan is due to be repaid in full. On this date, any remaining unpaid balance of the loan becomes due and payable to the capital provider.
First Payment Date	The date when the first installment or payment of a loan agreement is due.
Modification Date	The date when a change or modification is made to a loan agreement or contract.
Note Date	The date when a promissory note or loan agreement is issued.
Renewal Date	The date when a loan or financial agreement is renewed or extended.
Accrual Method	The method used to record interest income and expenses.
Is Secured?	Type of loan that is backed by collateral. Specifies whether it is secured. This field is mandatory.
Interest Type	The method for determining the interest rate on the loan note.
Interest Rate	The percentage of the principal balance that the borrower agree to pay as interest over a specified period, typically annually. This field is available when Interest Type is Fixed.
Index	The reference point defined in a loan agreement to determine the interest rate on a loan as configured in Field Configuration. This field is available when Interest Type is Floating.
Interest Spread	The additional percentage applied to the index rate to determine the interest rate on a floating rate loan. This field is available when Interest Type is Floating.
Interest Rate Floor	The minimum rate of interest to be charged as defined in the loan agreement. This field is available when Interest Type is Floating.
Interest Rate Cap	The maximum rate of interest to be charged as defined in the loan agreement. This field is available when Interest Type is Floating.
Interest Rate Cap Expiration Date	The expiration date of the maximum rate of interest to be charged. This field is available when Interest Type is Floating.
Interest Only Start Date	The date when the interest only period of the loan term starts.
Interest Only End Date	The date when the interest only period of the loan term ends.
Amortization Start Date	The date when the amortization period of the loan term starts.
Amortization End Date	The date when the amortization period of the loan term ends.

Click the Funding Allocation tab.

On the Funding Allocation tab, select the required option such as No Yes, participated or Yes, syndicated.

If Yes is selected, in the Allocation Details section, enter the following information.

Note:

• The first allocation is default to the users lending organization as the Capital Provider.

• To add additional allocations, click + Add Allocation.

In the Capital Provider drop-down, select the required capital provider.

In the Role section, select the required option such as Participation Lead or Participant.

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In the ID/Description field, enter an ID or description.

In the Share field, enter an allocation amount.

Note:

• Repeat the steps above to ensure that the total shares are equal to the total source amount.

• To remove allocation, click Remove.

Click Create Source.

The Capital Stack page is displayed with the newly created funding source.