Treasury Entities
Overview
Treasury Entities are the Entities that are the recipients of funds due to actions in Canopy. Simply put, they are the entities that either receive money from a purchase or receive money from borrower payments. Although in lending the relationships here can be somewhat circular so our system looks at these entities separately
Today our API calls them all Payout Entities, the different types come from the relationships you create with accounts. This allows Treasury Entities to be able to hold multiple types in Canopy's system if needed based on the scenario applied.
A lender may be the "Lending Entity" giving money to "Disbursement Entities" when a borrower makes a credit card purchase. The "Disbursement Entities" can be the lender and the merchant the purchase was allocated to. This would make the lender both a "Lending and Disbursement Entity".
To create Payout Entities you use the Payout Entities API that allows for the names of the institution, tax reference numbers, and banking information.
What are they and why are they valuable?
Payout Entities
Payout Entities are a type of Treasury Entity that is a reference to the recipients of the payments of the borrowers on a given account. Each Payout Entity can be assigned with percentages under three categories: Principal, Interest and Fees.
When you Create an Account you can use the payouts_config object to create the relationships in this scenario.
This can allow your program to allocate repayments from borrowers in granular ways to ensure money movement matches the complex paying behavior of borrowers at all times. Canopy keeps a record of all of these transactions for reporting purposes.
Example of Payout Entities in Canopy's System:
Disbursement Entities and Lending Entities
Disbursement and Lending Entities are the two entities that interact when the initial principal amount is disbursed during origination or a charge. These Entities are created using the same Payouts Entity API. The difference in our system is where and how you relate these entities to an account.
When you Create an Account you can use the disbursements_config object to create the relationships in this scenario.
This allows Canopy to enable money movement for initial principal disbursement for your program. Canopy keeps a record of all of these transactions for reporting purposes.
Example of how Disbursement Entities Interact with Canopy's System:
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Updated 7 months ago