Loans are the basis of the GeekPay system. This document outlines all of the key aspects of loans. To be succinct we've avoided documenting every single field for loans as most are self explanatory but there are some key aspects that are critical to understanding.
Loans go through a process of creation, initialization, and ongoing payment management. There are a number of states to a loan.
- Draft / Pending - Before loans are initialized, they remain in the Draft state. They will remain in this state until the lender initializes the loan by one of three ways: creating a "manually tracked loan", requesting that a borrower provide their payment details through the software, or entering a borrower's payment information and starting the loan.
- Borrower Pending - After you've created a loan, if you haven't associated a payment account and want the borrower to do so, you can invite them. The loan will remaining in the borrower pending state until the borrower then adds a payment account.
- Good Standing - This is self-explanatory. As long as all payments are up to date.
- Paused - Sometimes a borrower doesn't want to start a loan or can't make payments and you don't wish to charge them fees. At any point you can always stop payments on a loan and the borrower will no longer be automatically charged.
- Grace Period - If a scheduled payment fails, a loan will move into a grace period state. During this time a lender can make a payment and bring the loan back into good standing.
- Late - Should the loan fail to receive a payment during the grace period, it will be charged the late fee that the lender initially set when creating the loan. During this period, the loan will continue to be charged service fees and a past due amount will continue to be accrued. In order to return to good standing, the borrower will be required to pay off the full past due amount.
- Default - After a specified number of days (defined during the loan creation process), late loans will automatically be converted into "Default". At this point, no more payments will be attempted, no fees will continue to accrue.
- Fully Paid - These are loans that have been fully paid off.