Disbursement
Disbursement pays a loan out to the customer. It is the point where an approved loan becomes money in their hands and a receivable on your books — net of any processing fee, which is deducted rather than invoiced separately.
Where to find it
Go to Customer Loan > Disbursement.
What the list shows
| Column | Description |
|---|---|
| Loan # | The loan being paid out. |
| Customer | The borrower. |
| Date | When the money went out. |
| Initial Capital | The loan amount. |
| Processing Fee | Deducted at disbursement. |
| Net Disbursement Amount | What the customer actually receives. |
| Bank Account | Where the money came from. |
| Status | Whether it has been paid out. |
Tell the borrower the net figure before disbursement, not after. The gap between the loan amount and what lands in their account is the processing fee, and a customer discovering it on their bank statement is a complaint rather than a term they agreed to.
Disbursement Terms
The terms attached to the payout — when it is made and under what conditions. A loan cannot be disbursed twice; once paid out it is marked Already Paid Out.
What it does to your books
| Account | Effect |
|---|---|
| Loan GL Account | Debited — the receivable from the borrower. |
| Bank Account | Credited — money leaves. |
| Processing Fee account | Credited — fee income. |
Related pages
- New Loan — creating the loan
- Collection — getting it back
- Settings — the accounts used