TurnKey Lender’s Calculations Engine is the only solution on the market that allows for the creation of credit products of any complexity in a matter or minutes or even seconds.
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The templates for all most common loan types are built-in.
All other possible loan types can be configured in the Advanced mode which can be accessed from each credit product’s editing screen.
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Change Due Dates
The ability to change loan installment due dates on the fly is one of the most commonly requested features, which is available to the lenders by default.
The first due date can be shifted, for example, to fit the borrower's salary date. As a result, the first installment can be either longer or shorter than the others, but all the further installments will follow in equal periods according to the credit product settings.
The loan can be disbursed on any date, nonetheless, Back-Office managers can also set up the Start date for a loan (the date when the loan obligations take effect). Principal, interest, and fees are accrued starting with the Start date even if the loan was disbursed before or after it.
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Collections Management with Promise to Pay (PTP)
Now more than ever many borrowers need a little break. With the upgraded Promise to Pay functionality, TurnKey Lender makes this process as simple as it gets for the lender.
Allow your borrowers to postpone repaying their debt or stop adding interest for a selected period if the borrower promises to pay out a part of the loan’s body.
Customers with bad debt can add a promise to pay (PTP) within allowed limits from within the System. You have an option to suppress Late Interest and Late Fees for his loan until this date.
If a customer doesn't pay the promised amount until the promised date, all suppressed fees are accrued automatically for the whole PTP period.
Rollover
If a borrower is challenged with temporary difficulties or payroll interruptions, they can request a rollover from their lender. And with the economy heading for an even deeper crisis, many of the borrowers may request their own custom rollovers. Doing that without an intuitive couple-of-clicks process loses you hours upon hours of work. Loan rollovers are most common with short-term payday loans but are also used for mortgages and other regularly-paid loans.
Rollover can be free for a borrower or costs some special daily interest (with the rate higher or lower than the plain interest rate) or a solid fee, one for the whole rollover period.
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Restructuring
And the same goes for restructuring - the ability to restructure current loans is one of the most commonly requested features, which is ready-for-use for lenders out-of-the-box. So if a borrower is suddenly faced with low income or other financial difficulties, where they are unable to pay back the loan on time, they apply for restructuring. With TurnKey Lender, the entire process - from the borrower logging into their TurnKey Lender portal to the lender analyzing and approving the restructuring - takes several minutes.
Once past due payments are detected, extra overdue fees and penalties are accrued, so borrower’s debt increases. The deeper the borrower sinks in debt obligations, the less the lender’s chance to get back their funds and expected profit.
The restructure functionality allows changing the initial credit terms for a loan to repay the remaining debt amount and avoid the involvement of external collectors in case the borrower cannot repay the loan under initial credit terms.
For the restructured loan the System applies a new repayment schedule in accordance with specified credit product settings.
With the current version of TurnKey Lender, it is possible to completely change loan terms: change loan duration, installment periodicity (monthly, weekly, etc.), loan calculation type (annuity, payday, classic, etc.), set new payment dates, and much more.
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The new restructure details window displays information for the restructured and current credit product name with the opportunity to preview the amount before and after the loan was restructured.
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Leasing
Enterprises throughout the world lease vehicles, buildings, machinery, equipment, and other property. Up to one-third of private investment in the world is financed in this way. TurnKey Lender has updated the built-in functionality that lets creditors offer leasing credit products with zero residual value in a single click.
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Custom payoff settings
Depending on the business model, you may need to calculate the payoff amount based on varying business rules. Set your own unique rules and only apply them to the credit products you need.
Payoff amount includes some parts of Principal, Interest and all other fees, and these parts can be different for two cases:
an accrued unpaid amount,
future scheduled amount.
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Payoff grace period
In order to address borrowers' rising need for delayed loan payoffs, you can now apply new payoff grace period rules to any credit product. Applied payoff rules will then be used for the loan and once the time is up, the default rules come back into force.
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Enable grace period for semi-monthly periodicity
As a lender, you can now apply grace periods in cases when the payment periodicity is semi-monthly.
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Fully operational seasonal loan schedule available out-of-the-box
Charge clients payments only in the months they use your product or build a schedule around a seasonal job, a scholarship, or the months in which they use your product. As a business owner, you can set the seasons and the terms in the system UI for any credit product type (classic, annuity, leasing, etc.) allowing lenders to ride the global trend toward the as a service economy.
A couple of months back, we've started working with an innovative startup that provides amazing robotic mowers to their clients. To make their products even more accessible, they needed a credit product that behaves differently depending on the time of a year. This same principle applies to a wide range of businesses who provide their products or services not year-round. This feature eliminates all of the work you used to need to do to arrange for a custom schedule of installment charging and interest recalculation. TurnKey Lender now can do that out-of-the-box within every credit product you create.
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The interest for the months with no installments can be transferred to the installments for the active season evenly. You choose settings in the credit product and from there our software does the rest on autopilot.
For example, let's say that an installment is $300 with an interest of 5%. If the credit product includes 3/6/9 months of no installments, we need to distribute the interest evenly so we don't surprise the client with a much larger payment and it’s not a strain on their budget after the pause.
More credit product settings lenders will be thrilled with:
Apply custom fees only to the grace period
New Distribution mode of accruals for seasonal schedules.
New manual definition of the minimum required installment.
Charge complex compound interest based on your specific requirements out-of-the-box
Restructure the loan and offer credit vacation for the selected season.
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Credit lines
By popular demand, TurnKey Lender credit products set has been updated to include full-fledged credit lines functionality which supports multiple disbursements within the same loan application.
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After each next disbursement, the System automatically recalculates the repayment schedule and installment amounts based on the credit product settings.
The initial repayment schedule is based on the first funds tranche made within the loan. Credit line limit can be adjusted without creating new loan applications.
Credit lines in TurnKey Lender support revolving credit which enables lenders to build lasting business relations with borrowers keeping all the relevant data in a single place without multiplying loan applications. Embedding lending into your business, you can offer lines of credit for borrowers to use continuously within the loan terms you have agreed upon.
To accommodate the needs of business and consumer lenders who extend credit for their products and services, flexible down payments can also be used with credit lines. As a lender, you can set the acceptable range of down payment for each credit product, the borrower will select the value that works best for them and the System will instantly recalculate the installments and schedule.
The notifications and disbursement fees that apply to credit lines have also been added to the System out-of-the-box to allow for an even more streamlined lending process on autopilot.
All the credit line data is natively communicated to the reports allowing for live and historic data gathering and analysis in the built-in reporting dashboards or in Excel.
Work towards quicker payouts and simpler reporting with equal loan payments
When applying for a loan, the client can now specify the equal payment amount they can pay in each installment and the System will automatically round the payment to accommodate for the settings and range specified in the Back-office.
The Back-office managers can change the equal payment amount for new and active loans at any moment to increase or reduce the initial amount.
One of the more common use cases for equal payments is in conjunction with multiple disbursements. When a new disbursement happens within an existing loan, the Principal grows and borrowers often have to pay more in the next installments. This amount can now be changed with just a few clicks without the need to create new entries or loan applications.
With a new equal payment sum selected, a loan schedule is recalculated. Depending on the credit product settings, an equal payment may only include Principal, Interest, or any other fees.
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Additionally, from now on, lenders can use simple settings to decide when and how they’d like to charge fees and interest. For example, you can only charge them during grace period or during some other loan phase.
Let’s say you provide a borrower with a credit vacation or they don’t have to pay out their loan during some time. Then the fees, taxes, and interest can get pilled up and exceed the amount you can charge in the next installment.
The new fees accrual settings allow you to choose how you want to distribute the due payments and choose when you’d like to charge principal, interest, or other fees. For example, the borrower would be charged all of the accrued interest and fees in one month, and the principal can be rolled over to the next.
New accrual logic for interest and fees
The new feature allows for a more robust management of accrued payments which now can be charged flexibly against the outstanding balance. At the same time, outstanding balance allows borrowers to instantly see the amount of money owed to repay their loan in full.
Automatic loan terms changes on the fly
TurnKey Lender can now automatically adjust loan offer details with help of custom unique credit decision rules you select. Based on the client’s Creditworthiness, you can automatically reduce the loan amount for risky clients or on the contrary provide better terms to exemplary clients.
What's even better, you can combine loan offer terms changes with the Downpayment functionality described below. So if a product costs $2000 and you’re only willing to finance $1500, the client will have to pay the difference to you upfront to get the product.
The system changes the loan terms automatically based on the borrower’s Creditworthiness (an AI-fueled metric calculated on the basis of all scoring factors).
You can even provide us with a formula of how you’d like our AI to change the loan terms and based on what indicators. We do our magic and voila, the System works. Your underwriters can just control it and finetune it when the need in the market or product line arises.
System improvements created specifically for retailers
The first iterations of TurnKey Lender Retail are gaining more and more traction around the globe and specifically in North America. The enthusiastic reaction to the Retail solution we've launched helped our team gather new valuable insights about the features that will simplify the day-to-day of a retailer and will allow them to run a fully-automated digital lending operation that suits the exact needs of the business model retailed pursues. Here are the most important upgrades retailers can use in TurnKey Lender v.7.4
Downpayment & Pre-disbursement fees
As lending gets more and more digital, downpayment gains traction as an effective measure to reduce the loan non-repayment and fraud risks. Retailers, manufacturers, equipment, and service providers need an additional layer of protection and security when it comes to digital lending. That is why by a popular request, TurnKey Lender now has extended functionality to charge configurable down payment and/or pre-disbursement fees on autopilot.
Down payments are an important part for businesses working in retail, real estate, renovation, medical services & equipment, manufacturing, furniture, auto dealerships, and many other businesses.
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For the lender, downpayments are often a preferable model that reduces credit risk and makes the lending process more streamlined allowing for a quicker repayment and less paperwork than, for example, working with collateral assets.
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With TurnKey Lender, you can charge both a set percentage of the loan as downpayment, a specific fee, or a fee in a range that works for you which you can all set in an easy-to-use credit product constructor.
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To ensure added security and fraud prevention, downpayment and fees can be charged before the disbursement. The client will be notified that they need to make the initial payment before they can proceed with their approved loan.
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API Client, that comes built-in with TurnKey Lender, allows you to integrate your store's front-end with our system directly to transfer info about financed loans to the warehouse for further order processing. TurnKey Lender can be integrated with your e-commerce of choice as a part of our professional services.
New disbursement models - credit product flexibility inaccessible to any and all of our competitors
Product and service providers don't always need to actually disburse funds to the client's account, rather they just provide the product once the loan is approved and the downpayment paid. The choice to use TurnKey Lender for in-house consumer finance is easier than ever with these 2 new disbursement models available to clients:
The product or service provider acts as the lender - As soon as the downpayment is received, TurnKey Lender communicates that you can provide your product to the client. In this model, the embedded lender charges the downpayment to kickstart the virtual loan. The fact that you provided the product or service replaces loan disbursement. So your client can simply start loan repayment based on the agreed-upon schedule.
You provide a lending platform for partner product/service providers - In this case, TurnKey Lender client provides a lending platform to their vendors/partners. The buyer purchases something from the vendor with a downpayment. The loan is then transferred to the lending platform which in turn transfers funds for the product or service to the vendor. The lender then takes care of collection with help of TurnKey Lender.
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Application fee & Other initial payments
In many business models, it’s important to charge an application fee or any other initial payment before proceeding with disbursal. You can enable this feature and apply it to the credit product where it’s needed with exactly the settings you want.
Even more credit product flexibility in loan and repayments calculations
The Loan and Repayments Calculations Engine is getting even more powerful with new features simplifying the everyday life of a lender through automation. In this release, you get even more freedom and flexibility in credit product settings. Minimalistic UI and UX ensures simple settings adjustment and allows you to tailor credit products to exactly the requirements you have.
Loan Schedule History
This feature allows you to see any loan application on the stage it was at any given moment in the past. Allows back-office users to resolve any disagreements with the borrower by simply checking what happened on any given stage of a loan’s lifecycle.
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Fee Ranges
In any given credit product you can implement multiple fee ranges applied to different borrowers in different circumstances. This simplifies the credit products' management process since you can have only one credit product fitting the needs of various client groups. You can specify the needed fee or interest rate for every particular loan separately, that allows giving special treatment for your VIP customers or sub-prime ones.
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Merchant cash advance calculations
The MCA edition provides unlimited flexibility when it comes to forming the repayment schedule. For each advance, the forecasted repayment schedule is formed but in case any of the payments are delayed or rolled over, the schedule is recalculated and the remaining balance is redistributed on autopilot.
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In case auto-charges are enabled but the attempts to receive the contribution return an NSF error two times in a row, auto-charges will be paused to avoid accumulating NSF fees, and a staff member will be notified.
The calculation features exclusive to MCAs are:
Installment-based durations which allow you to set the schedule duration not in days/months but in payments
Merchant cash advance factor rate
Financing based on forecasted revenue of a customer
Stepping schedule - if a customer misses a contribution, the System will add a new one at the end of the schedule automatically.
Fully operational seasonal loan schedule available out-of-the-box
Charge clients payments only in the months they use your product or build a schedule around a seasonal job, a scholarship, or the months in which they use your product. As a business owner, you can set the seasons and the terms in the system UI for any credit product type (classic, annuity, leasing, etc.) allowing lenders to ride the global trend toward the as a service economy.
A couple of months back, we've started working with an innovative startup that provides amazing robotic mowers to their clients. To make their products even more accessible, they needed a credit product that behaves differently depending on the time of a year. This same principle applies to a wide range of businesses who provide their products or services not year-round. This feature eliminates all of the work you used to need to do to arrange for a custom schedule of installment charging and interest recalculation. TurnKey Lender now can do that out-of-the-box within every credit product you create.
With this feature applied to a loan, the client doesn’t get charged in the selected monthswhen they don’t use the equipment or services. And when the season to use your product comes, the lease-to-own or rent-to-own payments continue to be paid. These settings can differ by state or manual season selection within one credit product. The client instantly sees the calculated installments and the exact dates they will be charged.
The interest for the months with no installments can be transferred to the installments for the active season evenly. You choose settings in the credit product and from there our software does the rest on autopilot.
For example, let's say that an installment is $300 with an interest of 5%. If the credit product includes 3/6/9 months of no installments, we need to distribute the interest evenly so we don't surprise the client with a much larger payment and it’s not a strain on their budget after the pause.
More credit product settings lenders will be thrilled with:
Apply custom fees only to the grace period
New Distribution mode of accruals for seasonal schedules.
New manual definition of the minimum required installment.
Charge complex compound interest based on your specific requirements out-of-the-box
Restructure the loan and offer credit vacation for the selected season.
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To learn more about the fees, disbursement models, and a ton of other Calculations Engine settings, check out this guide