Installment loans are useful in a broad variety of business models. They help customers make life-changing purchases, like cars or houses. They are also used in small, simple use-cases, such as a Buy-Now-Pay-Later program. Canopy offers partners the ability to lend to a borrower and feel confident in a clear, well-defined, and agreed upon repayment plan that is consistent with your loan agreement.
The example configuration below shows you how, with no-code, you can set up an entire installment lending product in Canopy that is ready to start onboarding borrowers.
In this case, a borrower's payments will be due twenty-five days from today, and then 1 month later. This will continue for every month after that for 12 months in total. A Borrower's entire loan will be amortized over the twelve month window.
If you'd like to be a bit more advanced and figure out the many ways to tweak the configurations of your product, you can check out our Product Config Tips and Tricks. This lets you do fancy things like:
- Charge various fee structures for borrowers
- Set grace periods for missed payment penalties
- Automate account status changes for late payments
- And more!
You can also adjust some specifics for each borrower. As you onboard each individual borrower, you just need to let Canopy know:
- The borrower's information (first name, last name, etc)
- Some unique info regarding the borrower's loan:
- Loan Amount
- Interest Rate
- Term Length (this product defaults to 12 months, but is customizable per borrower)
- And more! (Example: Make sure all payments are due on the last day of the month.)
Through our Offer Presentment Workflow, for example, you may want to give the borrower the option to pay off the loan over 12, 24, or 48 months and allow the borrower to pick one option.
To learn more about why we chose these specific configurations and all the options available for this product construct, check out Configuration Tips for Products.