A product in Canopy is a template that lays out the general policies to be enforced over your borrower’s lifecycle.
The majority of these policies can be optionally overridden when onboarding each individual borrower.
In production, you will likely only have one or two products in your system. In your sandbox, you can experiment with a variety of product setups to figure out which best meet your needs.
A product can serve as the template for revolving lines of credit, installment loans, and hybrid-type loan agreements, depending on which parameter values you set in the API call.
There are three general categories of products, but there are not hard lines between these categories. Canopy intends to have the most flexible lending management software; if your lending program doesn't fit neatly in these lines, it's still likely Canopy supports the configurations your program is looking for.
- Multi-Loan (Revolving line with installment draws/advances)
Revolving products give borrowers perpetual access to an account; the account is a vehicle for end-user charges, finance charges (interest, fees, etc.), and payments. The account is expected to be open in perpetuity, until such time as the borrower requests an account closure or the borrower's behavior leads to some delinquent status. An example of a lending program that would use this type of product is a Credit Card program.
Multi-Loan (Revolving line with installment draws/advances) products give borrowers perpetual access to an account; the account is a vehicle for loans against a revolving LOC issued to the borrower. The account is expected to be open in perpetuity until such time as the borrower requests an account closure or the borrower's behavior leads to a delinquent account status. An example of a lending program that would use this type of product is a Merchant Cash Advance program.
Installment products give borrowers access to an account with an expected closure date. The account is a vehicle for a single loan (sometimes with ancillary line items like origination or late fees, etc.). The account is expected to close at the end of the borrower's repayments (or at delinquency). An example of a lending program that would use this type of product is a Secured Loan program.
Product configuration may require some back-and-forth with Canopy's Delivery team to fully match your intended lending constructs with Canopy's product configuration constructs. Don't worry, we're happy to help.
There are a number of policy decisions to make before configuring your product with Canopy. We can group these into several categories, including but not limited to:
- Product Overview, or general information about the product (such as a product name)
- Payment Due policies, which configures system behavior around due dates and delinquency
- Billing Cycle policies, which configures system behavior around cycle dates and time zones
- Interest policies, which configures how interest will be accrued on borrower accounts
A more detailed description of each policy configuration can be found here.
Updated 3 months ago