Canopy Extending Support for Advances

In an effort to continuously modernize our financial ledger and post-origination LMS, Canopy is expanding its support of Advance-based financing products, such as Merchant Cash Advances (MCAs). These products give lenders a flexible alternative to Loans and Lines of Credit; they tend to have less complexity than traditional interest-bearing credit, as well as a lower regulatory burden.

Advances are structurally different from interest-bearing loans: typically there's no maturity date, no interest, fixed periodic payments, and total repayment defined by a factor rate, not APR. Until now, most servicing systems retrofitted loan logic to mimic MCA behavior, leading to awkward workarounds, misaligned amortization, and poor transparency.

🔥 What’s better with Canopy

With this foundation-level domain, Canopy can natively handle Advances with the mechanics they actually use in the real world:

• No-maturity lifecycle with ongoing cycle creation until the purchased amount is fully repaid
• Fixed-amount payments without interest accrual (daily, weekly, or monthly)
• Clear payoff logic based solely on remaining balance. No interest, no recalculation
• Full servicing experience in Canopy OS, including repayment progress, schedules, and transaction history
• API-first origination and servicing purpose-built for MCA-style workflows

💡 Why this matters

This unlocks a completely new product class for lenders building on Canopy, especially those serving small businesses with uneven cash flow or embedded commerce platforms offering fast, upfront capital.

By giving Advances first-class treatment (not a hack on top of loans), Canopy becomes one of the few servicing platforms that can power Loans + Lines + Advances with equal clarity, precision, and configurability.

Lenders can now design, originate, and service their MCA product end-to-end with correct ledgering, correct repayment logic, and a clean UI experience without custom code or downstream workarounds.