Scenario: A Loan from Origination to Payoff

This walkthrough follows one loan across its whole life — originate it, disburse against it, record payments, and pay it off — so you can see how the Lending deal, the Loan Payment rows, and the disbursement and payoff tickets fit together in order. It sequences the features and points to the lending article that owns each; it does not re-document them. We follow a 500,000.00 loan on Harbour Tower. One idea to set straight up front, because it governs everything below: in this release there is no amortization engine. The "repayment schedule" is simply the set of Loan Payment rows you create, and balances move only when rows and tickets are completed or closed.

The story at a glance

A single 500,000.00 loan secured by Harbour Tower — borrower Meridian Capital, external lender Harbour Capital Partners — followed from the day it is written to the day it is retired. There is no separate "loan" object in REDA — a loan is a Lending opportunity, and like every deal it moves through stages shown as a Path:

Prospecting → Pending → Funded → Closed Won → Payoff Pending → Closed Lost

Note the order: a loan is marked Closed Won once it funds and the deal is placed — so Closed Won comes before Payoff Pending, the stage where the outstanding principal is worked down. But unlike a sale, the money on a loan doesn't move because of a stage change: it moves because you complete a Loan Payment row or close a disbursement or payoff ticket. Keep that distinction in mind and the whole lifecycle makes sense.

The timeline

The whole loan in one table — who acts, what REDA does in response, and which article owns each step.

Act 1 — Originate

A loan is a Lending opportunity — there is no separate loan object. Create it, set the parties (the Account as lender — Harbour Capital Partners — and the Borrower Account — Meridian Capital) and the collateral (Property = Harbour Tower; optionally link an Acquisition Opportunity when the loan funds a purchase), and enter the Loan Amount of 500,000.00. That amount is the ceiling everything else is capped against. The deal auto-names itself and opens at Prospecting; every balance figure starts at 0.00 and is system-maintained from payments and tickets — you never type them in. A loan can't be won without an Account:

Detail: Creating a Loan and Loan Deals.

Act 2 — Terms and the "schedule"

Enter the terms block — Loan Type, Loan Start Date, Amortize (Interest Only or Amortize), Frequency, Interest Rate, Interest Accrual Type. But here is the verified behaviour to internalise: REDA computes nothing from these terms and generates no repayment schedule. There is no amortization engine in this release. Any note claiming that "Amortize drives a payment schedule" is stale. The schedule is the set of Loan Payment rows you build in the next act. Detail: Loan Terms & Allocation.

Act 3 — Disburse

Draw against the loan with a Loan Disbursement ticket. The loan must be Closed Won first:

Set the disbursement type and amount, and link the acquisition if you are drawing against one:

The amount is capped at the Loan Amount. Crucially, only a Closed disbursement ticket updates the figures — the loan's Disbursed Amount, the property's Total Loan Disbursement, and Running Escrow. A ticket left open moves nothing. Detail: Disbursements & Payoffs.

Act 4 — Record payments

Loan Payment rows are the servicing records — this is the "schedule" you build by hand. A Principal Received row records the funding inflow (Principal Amount and a Payment Date up front). Payment Due rows record repayments: enter the Principal (0 is allowed for interest-only) plus the Interest, which is always required — for an interest-free row you must type 0 explicitly — along with a Due Date.

A row counts only when it is marked Is Completed, with a Payment Date and a Payment Reference. Until then the balances don't move. Completed Payment Due rows feed the loan's Paid Interest and Paid Principal; a completed Principal Received row feeds Received Principal. On our loan, interest-only at 9.00% annual, each monthly Payment Due row carries interest of 500,000 × 9% ÷ 12 = 3,750.00 — a figure you compute and enter, not one the system produces. Detail: Loan Payments and The Repayment Schedule.

Act 5 — Payoff

Retire the loan — or an older loan on the same property — with a Loan Payoff ticket (the paying loan must be Closed Won). Enter the loan being paid off and the payoff amount. Two caps apply: the payoff can't exceed the paying loan's available escrow, nor the paid-off loan's principal balance. The payoff must also target a loan with the same borrower, and a loan can't pay off itself:

Only a Closed payoff ticket updates the payoff figures on both loans. And note the deliberate gap: closing the payoff ticket does not move the retired loan's stage — you set that by hand (for example, to Closed Won). Detail: Disbursements & Payoffs.

The property loan summary

Harbour Tower carries a rolled-up debt summary. Only active loans (Funded, Payoff Pending, or Closed Won) feed the property figures. In plain terms:

• Total Loan Amount = the sum of active loan amounts.
• Total Loan Disbursement Amount = the sum of Closed disbursement tickets.
• Net Loan Balance = Total Loan Amount − principal paid − payoff received (the property's outstanding debt).
• Running Escrow = Total Loan Amount − Total Disbursement − payoff disbursed (loan funds still held).

For our single 500,000.00 loan, before any draw or repayment: Total Loan Amount 500,000.00; Disbursement 0; Net Loan Balance 500,000.00; Running Escrow 500,000.00. As draws close and payments complete, these move accordingly. Detail: The Property Loan Summary.

The numbers, reconciled

Balances move only when rows are marked Is Completed and disbursement / payoff tickets are Closed — there is no engine computing them behind the scenes.

Where to go next

1. Creating a Loan — the parties, collateral, and the amount that caps everything.
2. Loan Terms & Allocation — why the terms are documentation, not a computed schedule.
3. The Repayment Schedule — building the schedule as Loan Payment rows.
4. Disbursements & Payoffs — the tickets that move escrow and retire loans.
5. The Property Loan Summary — the debt rollups on the property.
6. Acquiring a Distressed Asset — where a placeholder loan is auto-created and completed.

Frequently asked questions