December 2019

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The Finance Shop Release Notes

Previously when a deal was structured there was no effective rate shown. The December patch release introduced the ability to display an effective rate when a deal is structured.

You MUST be on The Finance Shop 2019 to install this patch release.

Method of calculation

There are several different ways that lenders can calculate the effective rate when the deal has variable repayments. The method that we have used is to calculate the interest rate that the customer would have paid if the finance application had been unstructured with even monthly payments.

We are happy to work with any of our clients who have feedback or suggestions on other approaches or methods of performing these calculations.

In the example below, you can see a deal structured with quarterly repayments

When the calculations are custom the option to solve in all other areas is disabled;

You may go and manually edit the effective rate when you get the actual figures from the lender. To do this go into the calculations screen and manually enter the effective rate.

Change to the correct effective rate.

This figure will be displayed on all reports.

The Calculations warning indicator will be on as it is not the figure that TFS balanced too.