--- title: How to add commercial billing terms in a loan? description: This article discusses how to add commercial billing terms and information to a loan. --- [Skip to content](https://help.themortgageoffice.com/knowledge/how-to-add-commercial-billing-terms-in-a-loan#main-content) [![TMO-LO~1](https://help.themortgageoffice.com/hs-fs/hubfs/TMO-LO~1.png?width=200&height=65&name=TMO-LO~1.png)](https://www.themortgageoffice.com/) - [Platform](https://www.themortgageoffice.com/products/) Show submenu for Platform - [Loan Servicing](https://www.themortgageoffice.com/products/loan-servicing-software/) - [Loan Origination](https://www.themortgageoffice.com/products/loan-origination-software/) - [Fund Management](https://www.themortgageoffice.com/products/fund-management-software/) - [Knowledge Hub](https://www.themortgageoffice.com/knowledge-hub/) Show submenu for Knowledge Hub - [Blog](https://www.themortgageoffice.com/blog/) - [Resources](https://www.themortgageoffice.com/resources/) - [Webinars](https://www.themortgageoffice.com/resources/?_resource_types=on-demand-webinars) - [Seminars](https://www.themortgageoffice.com/seminars/) - [FAQs](https://www.themortgageoffice.com/frequently-asked-questions/) - [Release Notes](https://help.themortgageoffice.com/knowledge/release-notes) Open main navigation Close main navigation - [Platform](https://www.themortgageoffice.com/products/) Show submenu for Platform - [Loan Servicing](https://www.themortgageoffice.com/products/loan-servicing-software/) - [Loan Origination](https://www.themortgageoffice.com/products/loan-origination-software/) - [Fund Management](https://www.themortgageoffice.com/products/fund-management-software/) - [Knowledge Hub](https://www.themortgageoffice.com/knowledge-hub/) Show submenu for Knowledge Hub - [Blog](https://www.themortgageoffice.com/blog/) - [Resources](https://www.themortgageoffice.com/resources/) - [Webinars](https://www.themortgageoffice.com/resources/?_resource_types=on-demand-webinars) - [Seminars](https://www.themortgageoffice.com/seminars/) - [FAQs](https://www.themortgageoffice.com/frequently-asked-questions/) - [Release Notes](https://help.themortgageoffice.com/knowledge/release-notes) - [Contact Support](https://help.themortgageoffice.com/knowledge/kb-tickets/new) [Contact Support](https://help.themortgageoffice.com/knowledge/kb-tickets/new?hsLang=en) How can we help you? - There are no suggestions because the search field is empty. 1. [Knowledge Base](https://help.themortgageoffice.com/knowledge?hsLang=en) 2. [Loan Servicing](https://help.themortgageoffice.com/knowledge/loan-servicing?hsLang=en) 3. [Commercial Loans](https://help.themortgageoffice.com/knowledge/loan-servicing?hsLang=en#commercial-loans) October 9, 2026 # How to add commercial billing terms in a loan? ## This article discusses how to add commercial billing terms and information to a loan. ### **To enter commercial billing terms:** - Click on the ![image-png-Jul-14-2023-12-46-04-6535-AM](https://help.themortgageoffice.com/hs-fs/hubfs/image-png-Jul-14-2023-12-46-04-6535-AM.png?width=15&height=15&name=image-png-Jul-14-2023-12-46-04-6535-AM.png) **Loan Servicing** drop-down menu in the left panel of The Mortgage Office®. - Click the **Loans** drop-down menu. - Click **Commercial** from the list that drops down. - From the **Commercial** grid, select the loan you want to modify. TIP: If the record you want to edit is not visible, use the grid's vertical scroll bar to scroll the contents of the grid up or down, or click ![FindSearch icon box](https://help.themortgageoffice.com/hs-fs/hubfs/TMO%20APP%20Icons/FindSearch%20icon%20box.png?width=231&height=27&name=FindSearch%20icon%20box.png) **Find** to search for the record by entering your own search criteria. For additional information see [How to Use Find](https://help.themortgageoffice.com/knowledge/how-to-use-find?hs_preview=HVOdZgqP-118552067706&hsLang=en) and [How to Use the Data Grids.](https://help.themortgageoffice.com/knowledge/how-to-use-the-data-grids?hs_preview=iGfLglJv-112766338347&hsLang=en) - Click ![edit](https://help.themortgageoffice.com/hs-fs/hubfs/Icons/edit.png?width=15&height=15&name=edit.png) from the options available on the top panel or **double-click** on the loan. - Click ![align-right](https://help.themortgageoffice.com/hs-fs/hubfs/Icons/align-right.png?width=15&height=15&name=align-right.png) **Terms** from the list located on the left of the window, and select **Commercial** Tab. - ![Add new PLUS sign w border\_r-PNG](https://help.themortgageoffice.com/hs-fs/hubfs/Add%20new%20PLUS%20sign%20w%20border_r-PNG.png?width=37&height=21&name=Add%20new%20PLUS%20sign%20w%20border_r-PNG.png) **Add** or ![Table pencil Edit icon with border\_r-PNG](https://help.themortgageoffice.com/hs-fs/hubfs/Table%20pencil%20Edit%20icon%20with%20border_r-PNG.png?width=40&height=21&name=Table%20pencil%20Edit%20icon%20with%20border_r-PNG.png) **Edit** information to the following sections: ### **Billing Cycle:** | **Field:** | **Description:** | | --- | --- | | **Calculation Method** | The method used to calculate and assess **interest** charges. The options are: - Daily Balance - Average (Daily) Balance - Lowest (Daily) Balance - Highest (Daily) Balance | | **Billing Frequency** | The billing frequency determines **how often** interest charges are assess and billing statements generated. The options available are: - None - Monthly - Quarterly - Semi-Yearly - Yearly | | **Billed Through** | Enter the **date** interest charges have been assessed to (inclusive). | | **Start Day (1-31)** | The day of the month in which the billing cycle **starts**. TIP: Values between 28 and 31 may not occur each month in which case the last day of the month is used instead. | ### **Interest Charge Calculation:** | **Field:** | **Description:** | | --- | --- | | **![image-png-Jun-07-2023-04-54-07-9506-PM](https://help.themortgageoffice.com/hs-fs/hubfs/Icons/image-png-Jun-07-2023-04-54-07-9506-PM.png?width=21&height=18&name=image-png-Jun-07-2023-04-54-07-9506-PM.png)Exclude Late Charges/NSFs** | Select this option if you want to exclude **late charges** and **NSFs** from interest charge computation. | | **![image-png-Jun-07-2023-04-54-07-9506-PM](https://help.themortgageoffice.com/hs-fs/hubfs/Icons/image-png-Jun-07-2023-04-54-07-9506-PM.png?width=21&height=18&name=image-png-Jun-07-2023-04-54-07-9506-PM.png)Exclude Reserve Balances** | Select this option if you want to exclude **reserve trust** balances from interest charge computation. TIP: If this option is unchecked, the balance used to calculate interest charges will be **reduced** by the amount in the reserve trust account. | | **![image-png-Jun-07-2023-04-54-07-9506-PM](https://help.themortgageoffice.com/hs-fs/hubfs/Icons/image-png-Jun-07-2023-04-54-07-9506-PM.png?width=21&height=18&name=image-png-Jun-07-2023-04-54-07-9506-PM.png)Exclude Impound Balances** | Select this option if you want to exclude **impound trust** balances from interest charge computation. TIP: If this option is unchecked, the balance used to calculate interest charges will be **reduced** by the amount in the impound trust account. | | **![image-png-Jun-07-2023-04-54-07-9506-PM](https://help.themortgageoffice.com/hs-fs/hubfs/Icons/image-png-Jun-07-2023-04-54-07-9506-PM.png?width=21&height=18&name=image-png-Jun-07-2023-04-54-07-9506-PM.png)Exclude Finance Charges** | Select this option if you **do not** want to assess interest on unpaid interest balances. If this option is unchecked you have the following additional options: - **Note Rate.** Default. Interest is assessed at the loan's note rate. - **Fixed Rate.** Interest is assessed at a fixed rate. - **Modifier.** Interest is assessed at the note rate plus (or minus) a rate modifier. | ### **Funding Transaction Fee:** | **Field:** | **Description:** | | --- | --- | | **% of Draw** | The transaction fee to be assessed as a **percentage** of the total amount of the funding. | | **Plus** | The **dollar amount** to be assessed in addition to the calculated % of funding. | | **Minimum** | The **minimum** transaction fee to be assessed per funding. | ### **Pay Amount Calculation:** NOTE: The selections found here determine the **payment amount** the borrower must remit. TIP: These options **do not** affect the interest calculations. | **Field:** | **Description:** | | --- | --- | | **Default** | The calculated payment amount equals the interest due for the period. | | **Fixed P&I** | Select this option and enter the amount of the payment. TIP: Selecting this option may cause the borrower to pay less than the interest due causing the principal (or unpaid interest) balance to increase. | | **Fixed Rate (UPB)** | Select this option and enter an interest rate to calculate the payment amount based on a rate **other** than the note rate. TIP: The payment is calculated based on the loan's daily unpaid principal balance ("**UPB**"). TIP: Selecting this option may cause the borrower to pay **less** than the interest due causing the principal (or unpaid interest) balance to increase. | | **Modifier (UPB)** | Select this option and enter an interest rate to calculate the payment amount based on the note rate **plus** (or **minus**) the rate entered here. TIP: The payment is calculated based on the loan's daily unpaid principal balance ("**UPB**"). TIP: Selecting this option may cause the borrower to pay **less** than the interest due causing the principal (or unpaid interest) balance to increase. | ### **Account Maintenance Fee:** | **Field:** | **Description:** | | --- | --- | | **Maintenance Fee** | The **periodic** amount charged as an account maintenance fee for servicing. | | **Next Charge Date** | Enter the effective **date** when the next maintenance fee must be charged. | | **Frequency** | The frequency determines how **often** the maintenance fee is charged and is used to automatically increment the next charge date field. The options available are: - Monthly - Quarterly - Yearly | | **![image-png-Jun-07-2023-04-54-07-9506-PM](https://help.themortgageoffice.com/hs-fs/hubfs/Icons/image-png-Jun-07-2023-04-54-07-9506-PM.png?width=21&height=18&name=image-png-Jun-07-2023-04-54-07-9506-PM.png)Assess Finance Charge** | Select this option if you want to charge interest on the Account Maintenance fee. | ### Last Billing Statement: | **Field:** | **Description:** | | --- | --- | | **Amount Billed** | This is the amount that was on the previous billing statement and the amount that was **due** from the borrower, including any fees or charges. | | **Amount Paid** | The amount that the borrower **paid**; not necessarily the amount billed. | | **Late Charges** | Any **outstanding** late charges the borrower needs to pay will be listed here. | | **Amount Pending** | This is the **difference** of the Amount Billed vs. Amount Paid. For example: if the Amount Billed is $1,000 ($900 in P&I and $100 in Late Charges) and the borrower only pays the $900 in P&I, the unpaid $100 will be listed in the Amount Pending. | ### **Auto Payment from Reserve:** | **Field:** | **Description:** | | --- | --- | | **Percent of Amount Due** | Enter the percentage of the billing statement's **Minimum Payment Due** to be automatically paid from the Reserve account. | | **Plus Flat Amount** | Enter an additional **flat dollar** amount to be added to the amount calculated above. | | **If Insufficient Funds in Reserve** | Select from the menu what to do if there are insufficient funds in the Reserve account (at the time of generating the billing statement): - **Do not pay**. Ignore the Auto-Payment during this billing cycle. - **Pay full amount**. Apply the full Auto-Payment amount even if there aren't sufficient funds in the Reserve account. - **Pay available amount**. 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