Automated Clearing House (ACH) is a network that allows individuals and businesses to transfer and collect funds electronically in the United States.
Amortization refers to the total length of time it will take for a borrower to pay back a loan.
The Annual Percentage Rate (APR) that is charged for borrowing, expressed as a single percentage number that represents the actually yearly cost of funds over the term of a loan. This includes any fees or additional costs associated with the transaction.
A borrower is a person who finances a purchase instead of paying cash or credit for it.
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’ gross 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-signer be added to the loan, or we may need to counteroffer 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 [Link to Using Promotional Programs].
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, an Interest Rate Buy-Down may be offered to the customer to decrease the interest rate. [Link to Using Promotional Programs]
Every application made on behalf of a borrower has a unique number associated with it. The number may be preceded by letters.
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. [Link to Acceptable POI]
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 [Link to Using Promotional Programs].
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.