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Siebel eFinance Guide > Commercial Loans > Administrator Procedures >

Setting Up a Portfolio Type for a Commercial Loan

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Using the Portfolio Administration view, administrators can set up the commercial loan portfolios that are used to group similar types of commercial loans. For example, an administrator may set up Automobile, Manufacturing, and Chemical portfolio types. In this view the administrator can also set the limit and utilization of each portfolio type. For example, an administrator may set the limit for an automobile portfolio at 100 million dollars. As a result, the organization's combined loan total for the automobile industry should not exceed 100 million. The utilization captures how much the bank already lends to the automobile industry. After the appropriate portfolios are set up, end users can then review the portfolios in the Request Summary view to see the financial institution's exposure in each industry.

To set up a commercial loan portfolio

1. From the application-level menu, choose View > Site Map > Finance Administration > Commercial Loan.
2. Click the Portfolio Administration view tab.
3. To create a new portfolio type, add a record in the Portfolio Administration list, and complete the necessary fields.

   NOTE:  To modify an existing portfolio, in the Portfolio Administration list, select a record. Update the record as needed.

   Some fields are described in the following table.

   Field	Comments
   Limit	Financial organization's limit for combined commercial loans in this portfolio.
   Portfolio Type	Name for the portfolio.

After setting up the appropriate portfolios for commercial lending, administrators can add underwriting standards to the portfolios. These standards are used by the credit committee when determining whether to finance the loan. An example of a portfolio underwriting standard is a leverage of less than 30% for a software portfolio.

The values in this view are displayed in the Request Detail view tab.

To set up a commercial loan underwriting standard

1. From the application-level menu, choose View > Site Map > Finance Administration > Commercial Loan.
2. Click the Portfolio Administration view tab.
3. In the Portfolio Administration list, select a portfolio to set up an underwriting standard.
4. In the Loan Underwriting Standard list, add a record and complete the necessary fields.

   Some fields are described in the following table.

   Field	Description
   Definition	Definition of the standard; for example, loan to value or collateral value.
   Standard	Standard set by the bank.
   Type	Type of underwriting standard used for the loan request; for example, Coverage, Leverage, or Team.

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