Overview

In Canopy you can structure relationships between entities to allow you to represent business structures, financial liability chains, and controller relationships. We call this action of linking entities together and Associating Entities

Our system lets you create hierarchical structures using parent-child relationships. This allows for a variety of use cases that can enable your lending program to see a wider view of financial data to make better risk decisions.

• Businesses that have multiple employees that manage their finances in industries like logistics and shipping, accounting teams, and major corporations.
• People who own multiple small businesses and want to have personal and business loans in one place
• A large business wanting to segment their spending by regions

Today our system is optimized, but not limited to, one layer of hierarchy. If your program desires deeper levels of nesting talk with our sales and delivery team today!

Here are some example hierarchy structures for customers within Canopy:

How do I Associate Entities?

Customer Entity Relationships

Hierarchy for Customer Entities is created by Parent-Child relationships between Customer Entities today.

1. Each Customer Entity can be given a Parent Entity
   1. Our Client Delivery Team can help you with more complex hierarchy structures beyond one level.
2. The customer_parent_id field allows lenders to establish these relationships, enabling them to track ownership and hierarchies within their customer base.
   1. You must create Parent Entities before creating a child entity so that the relationship can be made upon creation

Treasury Entity Relationships

Today Treasury Relationships are set at the Account Level. You can update the Entity's information once created.

Create + Update Payout Entity API workflow here

Payout Entity Relationships

When you Create an Account you can use the payouts_config object to create the relationships in this scenario.

1. The payout_split_percentages array of objects is where you provide a list of entities you would like to assign as the Payout Entities. (ei: lenders, banks, investors).
   1. Each Payout Entity is assigned a percentage of one of three allocation categories: Principal, Fees, and Interest
      1. The sum of percentages under each allocation must be 100%

Disbursement and Lending Entity Relationships

When you Create an Account you can use the disbursements_config object to create the relationships in this scenario.

1. The disbursement_source_payout_entity_id is the field where you select the entity you would like to assign as the Lending Entity in this scenario.
2. The disbursement_split_percentages array of objects is where you provide a list of entities you would like to assign as the Disbursement Entities. (ei: lenders and merchants).
3. Each Disbursement Entity is assigned a percentage of the principal
   1. The sum of percentages must be 100%

Related Articles

Create a Customer

Recipe: Associated Entities

API: Creating A Customer

API: Update Customer Details