Also called Customer Fee, this is a one-time charge tagged on to the Principal Loan amount. This Customer Fee pays for operating costs and the costs associated with making loan applications. It will vary from vertical to vertical and from loan to loan.
Amortization refers to the total length of time it will take for a borrower to pay back a loan.
The Annual Percentage Rate (APR) is an interest rate represented as an annual rate instead of as a monthly rate. The APR includes the administration fee associated with the loan.
A borrower is a person who finances a purchase instead of paying cash or credit for it.
A co-borrower is a spouse, family member, or friend who is added to a loan in order to improve a customer’s Debt-to-Income Ratio (DTI). If a co-borrower is added to a loan, the co-borrower’s credit history is reviewed. If the loan is approved, the co-borrower has an equal obligation to the loan.
A disbursed loan, also known as a funded loan, refers to an approved loan that has been paid to the Partner.
A down payment is the initial amount paid for a purchase. A down payment can help a borrower reduce the total amount of the loan.
The Debt-to-Income Ratio (DTI) compares customers’ monthly income to the amount of debt they have. In a high DTI scenario, debt ratio outweighs income, and Financeit may require that a co-borrower be added to the loan, or we may need to modify the loan in order to accommodate the high DTI.
An Electronic Funds Transfer (EFT) is an electronic transfer of money from one account to another account.
Equal Payments is a promotional program offering customers an interest-free loan on their purchase, with equal payments over a payment period of up to two years. The loan is paid out when the payment period ends.
As part of the approval process, Financeit completes an Employment Verification (EV) by contacting a customer’s employer to verify the customer’s employment details.
Financeit Approvals allows you to send a loan application to a customer to complete and submit later using email or a web link.
An interest rate is the percentage paid on the principal loan amount on an annual basis.
Interest Rate Buy-Down
If a customer is approved for a loan at a particular interest rate based on their credit score, the Interest Rate Buy-Down promotional program may be offered to the customer to decrease the interest rate.
Every application made on behalf of a borrower has a unique number associated with it. The number may be preceded by letters.
Non-Sufficient Funds (NSF) indicates that a borrower does not have sufficient funds to complete a loan payment. We charge $50 for each missed payment.
Payment Protection is an optional creditor insurance product that covers the borrower for Life, Accidental, Disability, and Involuntary Unemployment. The Payment Protection insurance premium is added to the loan principal and you receive 25% of the premium for each successful sale.
Note: Some restrictions may apply.
Per diem refers to the daily interest rate on the loan. The amount is based on the approved interest rate that is added to the principal loan amount on a daily basis.
Proof of Income (POI) is a document from an employer or the government that shows a customer’s monthly or annual income. A POI helps determine the customer’s actual income. For more information, read about Accepted Proof of Income (POI) Types.
The principal payment is the portion of the loan payment that reduces the outstanding balance of the loan.
You can offer promotional programs, such as Deferrals, Buy-Downs, and Equal Payments, to your customers. Offering promotional programs is a proven way to increase your close rates and transaction size.
Our Standard Program refers to a loan application with no promotional program applied. Our Standard Program is free to use.
Term refers to the length of time that your loan is locked in at a specific interest rate.