A Line of Credit (LoC) account is used to offer unsecured credit to customers of a fintech. It allows a borrower to utilize funds, as needed, up to a predetermined limit. The borrower may then repay the funds and borrow again as needed.

The curl examples assume you have set up baseurl and apikey environment variables. See Base URL and Authentication for instructions. Some examples depend on identifiers generated by previous steps. These are indicated like {APPLICATION_ID}.

Program Setup prior issuing Line of Credit

Your organization has to be given specific privileges to be able to issue line of credit. Please reach out to your contact at Synctera for more information.

Creating a Line of Credit Product

To create a Line of Credit, the following steps have to be completed:

1. Create a person - as a precursor, the person set-up has to be completed (Person API spec), including passing the KYC/KYB process via KYC Verification API Overview
2. Disclosures - these must be accepted by the personal or business customers (including the credit agreement). See the disclosures section for details.
3. Line of Credit Application - an LoC account cannot be created until the customer applies for a line of credit via the Application API. Overview here
4. Account Product - Define the interest rates charged on the LoC account. See the LoC Account API guide here.
5. Account Template - Setting up an Account Template specific for Line of Credit. See the LoC Account API guide here.
6. Line of Credit Account - Creation of the LoC account. See the LoC Account API guide here.
7. Adverse Actions - If a LoC application is denied, adverse action reasons need to be sent to the personal customers (optional for business customers) and the adverse actions ID needs to be included in the LoC application when the application status is marked as CREDIT_DENIED. See the Adverse Actions API spec here.

Disclosures

As the application & the accounts are being created FinTech has to inform Synctera of the Disclosures acknowledged by the applicant. Specifically for Line of Credit, the required disclosures include:

At the time the Application is created

1. E-Sign
2. Privacy Notice
3. USA Patriot Act Notice
4. Owner Certification (for business customers)

Prior to the Account being Created

1. Account Terms & Conditions
2. ACH Authorization

Please see details for the Disclosures here - Customer Disclosures