Virginia Company Setup Guide:
Here is the link to APR Calculations and Common Percentages
There is special company setup required for Title Loans done in states like Virginia, which are done on a Motor Vehicle Equity Line of Credit (MVELOC) contract with an Average Daily Balance interest calculation. Before setting up and using this option, be sure to discuss the details with Alpha Omega. The main setup fields that are "different from the norm" are:
The interest must be set up to match the interest on the MVELOC contract. The Initial box should be unchecked, and the Recurring box should be checked. This is because the Average Daily Balance interest cannot be initially pre-computed, as it can with amortized and "loan length" accruals.
If you are charging an initial membership fee and a title lien fee, you can set them up as separate fees, or you can "lump" them together. If you do not want to charge interest on these fees, be sure that the Financed box is unchecked, and that in the Transaction file the transaction categories are Fee, not Principal. If you do want to calculate interest on these fees, the Financed box should be checked and the transactions should be set up with the categories as Principal. If you need to set up a Membership Fee in the Transaction File, it should be configured the same as the Title Lien Fee, and should be set up before the Title Loan part of the Company Setup is done.
The Accrual Method should be Loan Length - Average Daily Balance.
The Due Date Calculation method should be Default.
The contract must be hard-coded for your membership fees and other parameters, so DO NOT select a contract for another company, unless EVERYTHING you do is exactly the same as the other company.
To print statements after the Average Daily Balance interest has been calculated, use the Statements option on the Tools menu.
Since there is considerable "lag time" between the loan inception, the interest being accrued (30 days later), the statement being mailed and received, and the client knowing his/her exact payment, some companies using this method require the client to come in after 15 days and pay the title lien fee and membership fee. You may want to consider such an "intermediate payment" method and incorporate it into your contract (and of course explain it to your clients).