Tokenizing Loans
Tokenizing Existing Loans
Preczn treats loans as a payment method, similar to tokenizing a credit card during a transaction. To create a loan token you will need to perform a request to the token endpoint. You will need to specify the brand, type, loanID, and merchant to which the loan is associated.
Endpoint:
POST https://api.preczn.com/v1/tokens
{
"type": "loan",
"loan": {
"brand": "greensky",
"type": "B2B2C",
"externalLoanId": "2334800076"
},
"merchantId": "mid_test_4ky80vwqjh9ehbggwdp0d9t340"
}
{
"createdOn": "2023-09-15T19:51:46Z",
"modifiedOn": "2023-10-19T18:15:31Z",
"id": "tkn_test_1vd5arshwm925rn726cs082s07",
"merchantId": "mid_test_4ky80vwqjh9ehbggwdp0d9t340",
"type": "loan",
"loan": {
"customerFirst": "JAMES",
"currentBalance": 0,
"status": "Application Offers Presented",
"brand": "Greensky",
"merchantName": "GreenskyTestMerchant",
"creditLimit": 0,
"applicationDate": "2023-08-02T00:00:00Z",
"availableCredit": 0,
"stageFundingThreshold": "100/0",
"customerLast": "BREWSTER",
"externalLoanId": "2334800076",
"type": "B2B2C"
}
}
For a step-by-step explanation of each of the elements please refer the following recipe:
Automatic Tokenization
Once you set up your connection to your lending provider, Preczn will listen to webhook events from the provider. When a new loan is issued, if Preczn finds a matching merchant but the loan is not detected, Preczn will automatically create a loan token and start tracking the loan.
To listen for automatically created loan token, please subscribe to the loan.created Preczn
webhook event.
Retrieving Loan Data from a Token
While Preczn stores data about loans, the authoritative source will always be the loan provider. To accommodate this, Preczn's GET Token API enables platforms to request the most up-to-date information about a loan. When a request is made using a specific Preczn loan token, Preczn contacts the loan provider and returns the latest loan details.
To obtain the most recent status of a loan, execute a GET request to our token endpoint using the loan's tokenId. Preczn will then provide the latest information from the lending provider.
Endpoint:
GET https://api.preczn.com/v1/tokens/tkn_test_rkdnbmhn18bbanwt918f5bz62
{
"type": "loan",
"merchantId": "mid_test_4ky80vwqjh9ehbggwdp0d9t340",
"createdOn": "2023-12-14T11:20:26Z",
"modifiedOn": "2024-01-15T16:14:48Z",
"id": "tkn_test_rkdnbmhn18bbanwt918f5bz62",
"loan": {
"expirationDate": "2024-06-15T00:00:00Z",
"customerFirst": "GEORGE",
"tokenId": "tkn_test_rkdnbmhn18bbanwt918f5bz62",
"merchantDrawdownPercentageFee": 8.25,
"currentBalance": 0,
"status": "Not Activated",
"brand": "Greensky",
"merchantName": "General Contractor Unlimited",
"creditLimit": 1500000,
"applicationDate": "2023-12-14T00:00:00Z",
"availableCredit": 1500000,
"stageFundingThreshold": "100/0",
"customerLast": "ALFRED",
"externalLoanId": "2334800076",
"type": "B2B2C"
}
}
Loan Data
To effectively service a loan, it's crucial to comprehend the data that loans yield and how this data may evolve over time. To facilitate this, Preczn provides a standardized set of loan data fields. It's important to note that although these fields are available, not all loan providers supply data to populate every field.
Please see the connection guides for each lending provider to see what fields they make available:
Field | Value | Description |
---|---|---|
brand | string | The specific loan provider. |
type | string | Type of loan. Ex B2B, B2B2C, etc |
externalLoanID | string | The loan or application ID associated with the loan provider. Can be used to cross reference with their system |
status | string | The normalized status. See Loan Status section for more details. |
customerFirst | string | Primary signees first name |
customerLast | string | Primary signees last name |
creditLimit | integer | The approved credit limit for the active loan |
availableCredit | integer | The available total remaining credit which can be drawdown. |
currentBalance | integer | The current balance on the loan. |
stageFundingThreshold | string | The threshold of available the credit limit that can be drawn before the projects completion. |
applicationDate | string | Date the application was submitted |
originationDate | string | Date the loan was originated. (NOTE - Origination dates are currently recorded by Preczn at the time the loan is activated, and thus requires the loan to be in Preczn while it's has an application status in order to know the date of origination) |
expirationDate | string | Date the loan expires and is no longer valid. |
merchantDrawdownPercentageFee | number | The percentage fee that the merchant will pay with every drawdown request. Ex. 8.5 would be a 8.5% fee paid on each drawdown amount requested. |
Loan Status
As part of loan data, Preczn offers a normalized loan status. It's important to consider the status of a loan, as only those that are Active
should be used to perform drawdown transactions.
If you wish to receive the latest status updates for your loans, we recommend subscribing to Preczn token update webhooks.
Status | Description |
---|---|
applicationSubmitted | An application for a loan has been submitted but is under review by the loan service provider. |
applicationActionRequired | The loan service provider has flagged the loan as requiring additional action such as additional documentation or confirmation with the customer. Please contact the loan service provider. |
applicationOffersPresented | The credit has been approved for the loan application and offers have been presented to the customer. |
applicationDeclined | The loan application was declined due to customer not meeting requirements. |
applicationCancelled | The loan application was cancelled, please contact the loan service provider. |
applicationExpired | The loan application expired to due to inactivity. Please restart a new loan. |
notActivated | An offer has been selected, but loan is not active due to the loan agreement not being signed. |
active | An active loan. Drawdowns can be placed against the loan. |
Updated 5 months ago