New Business 

Purpose

New Business offers functions for processing new loan transactions, from the first contact with the interested party (loans given), to conclusion of the contract and disbursement.

Before you can create a transaction, you must define your product types and number ranges. You can opt for internal or external number assignment.

The main types of loan are:

·        Mortgage loans

·        Borrower’s note loans

·        Policy loans (advance payments on insurance policies)

·        General loans

·        Consumer loans

·        Installment loans

When you enter new loans, you can represent the following loan statuses:

 

 

Status Concept

The status concept enables you to map different processes for the various forms of loan. You can define corresponding statuses for each product type. This allows you to represent the exact processing status of your loans in the system.

For example, a mortgage loan or a consumer loan might pass through the statuses application, contract offer and contract. The transaction activity of a policy loan can be displayed via the status contract offer and contract, for example. For borrowers note loans, you can define the statuses reservation, order and contract. The business transaction of an installment loan can be processed using status Contract only.

In an application you record the requirements of a prospective customer. In offer status, you can send one or several offers to a prospective customer. When you transfer the loan to contract status, the loan transaction becomes legally binding for both parties.

You can complete or change the data for an existing loan at a later stage. Status management also extends to activities such as the withdrawal, or reactivation of a loan.

The status concept does not apply to interested party management. Interested party management lets you enter basic information about potential customers and their requirements (such as the capital required) before you enter the actual loan process.

The following diagram illustrates the different ways you can enter a loan transaction in the system:

 

Status Transfers

You control the processing sequence for loan transactions by defining status transfers. They let you define alternatives for the series of processing steps you pass through from origination through to the contract stage.

In the case of a mortgage loan or a consumer loan, for example, you can enter the loan as an application, and then make offers to the business partner in contract offer status. Upon conclusion of the contract, you can convert the corresponding offer into a contract. Alternatively, you can convert an existing application directly into a contract. You can also enter a loan transaction as a contract offer and then convert it into a contract, or enter the transaction as a contract from the start.

By linking the product types to processing activities, you can set up fixed processing sequences at application level. This helps you to standardize your loan processes and integrate other organizational factors, such as release requirements.

Prerequisites

You define the corresponding statuses for each product type and company code in Customizing in the IMG activity Company Code-Dependent Settings for Product Type. You also define the status transfers you require here.