Vehicles or equipment purchased through Chattel Mortgages and Hire Purchase Loans agreements are calculated differently from normal bank loans, so we have added a simple interest loan calculator to ensure interest is claimed correctly.
To add a Chattel Mortgage or Hire Purchase Loans, first navigate to the work tank, and then to the loans tab. Then select the 'Add Loan' button.
Then next step is to complete the fields in the simple loan calculator pop-up so we can calculate the repayment schedule.
Loan type - Choose if the loan is a Hire Purchase loan or Chattel Mortgage.
Fyi, there is also the option to choose Auto loan or Bank loan, however these loan types will redirect you to the bank feeds page to link the bank.
Annual interest rate (%) - the annual interest percent charged
Commencement date - when the loan started
Loan amount - the original loan amount (excluding any interest)
Number of payments - usually 60 payments (5 years), but sometimes varies
Frequency - monthly, weekly or every 2 weeks
Payment instalment amount - the amount you pay
Then select the 'Calculate Payments' button to generate the repayment schedule.
To view the schedule simply click on the Payments icon.
You'll then see the breakdown of the loan, including the principal and interest repayments. Use the arrows to move through the pages and ok to close.
And last but not least, press the save button to confirm.
The schedule will then display in the relevant financial year, and better still, we will create a rule to automatically apply the principal and interest components when you allocate the repayment from bank feeds.
Want more information on allocating these types of repayments? Check out How to Allocate Chattel Mortgage and Hire Purchase Loan Repayments.