Multi-Advance Installment Loan

Help your borrowers spread out the cost of large projects by structuring a multi-advance installment loan within Canopy! This is typically used when there is a large project of unknown cost, for which a borrower needs to borrow. The multi-advance product handles this by drawing down on credit to cover costs while the project is underway. After a fixed period, typically the project length, the balance drawn is converted into an installment loan.

The example configuration below shows you how, with no-code, you can set up an entire Multi-advance Installment Lending product in Canopy that is ready to start onboarding borrowers.



Example: 24-Month Installment Loan with an Initial 6-Month Promotional Period#

A 6 month initial period is set up during which the borrower can spend against a $60,000 spend limit. At the end of the six months, whatever balance the borrower spends is converted into a 48 month installment loan over which payments due are amortized at a 3% default rate. There is a small fee structure baked in for late payments or bounced payments. Payments are due five days before the end of the cycle.

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!

Multi-Advance Installment Loan: Request Payload Example
{
"effective_at": "2016-11-27T13:19:56+00:00",
"product_overview": {
"product_name": "Multi-advance 24 Month Standard",
"product_type": "MIXED_RATE_INSTALLMENT",
"product_short_description": "6mr48mi.",
"product_long_description": "Six month revolving period, 48 month installment to be used for industrial contract projects.",
"product_color": "#0000FF"
},
"product_lifecycle_policies": {
"payment_due_policies": {
"delinquent_on_n_consecutive_late_fees": 2,
"charge_off_on_n_consecutive_late_fees": 5
},
"fee_policies": {
"late_fee_grace": "5 days",
"surcharge_fee_interval": "1 month",
"default_surcharge_fee_structure": [
{
"surcharge_start_inclusive_cents": 0,
"surcharge_end_exclusive_cents": 0,
"percent_surcharge": 0
}
]
},
"billing_cycle_policies": {
"cycle_interval": "1 month",
"cycle_due_interval": "-5 days"
},
"default_attributes": {
"default_credit_limit_cents": 6000000,
"default_late_fee_cents": 3000,
"default_payment_reversal_fee_cents": 3000
}
},
"promotional_policies": {
"promo_len": 6,
"promo_min_pay_type": "PERCENT_PRINCIPAL",
"promo_purchase_window_len": 5,
"promo_interest_deferred": true,
"promo_default_interest_rate_percent": 3,
"promo_min_pay_percent": 100,
"promo_apr_range_inclusive_lower": 2,
"promo_apr_range_inclusive_upper": 5
},
"post_promotional_policies": {
"post_promo_len": 48,
"post_promo_am_len_range_inclusive_lower": 2,
"post_promo_am_len_range_inclusive_upper": 5,
"post_promo_min_pay_type": "AM",
"post_promo_default_interest_rate_percent": 3,
"post_promo_apr_range_inclusive_lower": 2,
"post_promo_apr_range_inclusive_upper": 5
},
"admin": {
"migration_mode": true
}
}

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 (name, last name, etc)
  • Some unique info to the borrower's loan
    • Credit Limit
    • Interest Rate
    • Term Length (this example defaults to a term of 48 months, but can be set unique to each borrower)
    • And more! Example: Make sure all cycles end last day of the month.


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.