How to Use Light and Advanced Modes to Create Credit Products

Owned by TurnKey Lender
Last updated: Nov 16, 2022
3 min read

In this article, we'll go over the instructions on how to create a credit product in the TurnKey Lender System.

Credit Product is an essential part of the initial System configuration. That is where you tell the System what loan types you are willing to provide, the permitted terms of the loans, loan amounts, interest rates, and much more.  To create a Credit Product, you need to be logged in to the System using an account that has System administration permissions.

Credit products can be created using Light mode (with pre-defined settings) or Advanced mode (in-depth expert setting).

The Light mode has all the popular loan settings configured so you can just go ahead and use them. Advanced mode, in turn, lets you fully customize every detail of your credit product.

Light mode 

In the Light mode, it is possible to create credit products within minutes by using pre-defined settings based on the industry's best practices. This is the optimal option to start with since it's incredibly easy to set up and use.  

General characteristics:

  • set of pre-defined loan type templates (annuity, classic, payday, flat interest, bullet)

  • set of typical repayment periods (monthly, semi-monthly, weekly, bi-weekly)

  • set of pre-defined fee templates (administration fee, origination fee, past-due interest, late fee, NSF fee)

  • pre-defined and hidden general settings (accrual priority, payment applying, etc.) 

Step-by-step guide

  1. Once you're logged in, navigate to the Settings workplace in the top menu.

2. Select Credit Products from the Loan Settings menu item on the left.


3. Click  ADD NEW RECORD on the Toolbar. The Add Credit Product window (in Light mode) will appear.

 

4. Enter the name of your new credit product and specify its settings.

Note that some fields are required, such as Name, Loan Type, Type of Calculation, Periodicity, etc.

5. Click OK to create and/or save the Credit Product.

Advanced mode

In case Light mode doesn't cover all your requirements to the credit product, you can use Advanced mode to surely address them. In this mode, the lender can set fully custom payment schedule rules and logic as well as all the loan terms. It is easy to create any known schedule type, or a completely unique one.

The Advanced mode doesn't have pre-defined templates, but instead provides flexibility to create an enormous number of different credit products.   

The Advanced mode allows you to do the following and more:

  • choose any repayment periodicity. It can be days, weeks, months, or years. You can also charge the borrower several times a month, a year, or even a loan term  

  • manage or turn off accruing interest, fees, and even principal for the grace period in any desired combination

  • specify your write-off tolerance.

To change the mode from Light to  Advanced, press Use Advanced Mode button at the top of the Credit Product editing screen. After this action, you will not be able to return to the Light Mode for the current Credit Product.