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.
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 a revolving product is a Credit Card 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 an installment product is a Secured Loan program.
Multi-Loan products (revolving line with installment draws or advances) give borrowers perpetual access to an account. This account then acts as a vehicle for loans against a revolving LOC issued to the borrower.
It 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 multi-loan program that would use this type of product is a Merchant Cash Advance program.
Visit the Create a Product article under the Getting Started section of our Guides for step-by-step instructions on how to set up and configure all types of products in Canopy.
Updated 3 months ago