PayPlan Core: Building Your Lending Foundation

Audience: Small Lenders, Portfolio Managers, Emerging Financial Institutions

Topic: Package Overview & Capabilities

Why PayPlan Core?

The Core tier represents the step where a business transitions from simply "taking payments" to becoming a true lender.

While the Starter package is optimized for retail sales speed, the Core package is built for businesses that need to manage the math, risk, and compliance of lending money. If you are ready to charge interest (APR), manage a loan portfolio, or require deeper verification of your borrowers, this is your solution.

The Core Philosophy: Smart Growth

We designed the Core tier for lenders graduating from pilot programs to full portfolios. It introduces the necessary guardrails to lend safely, including automated calculations for interest, verified legal documents, and tools to help you decide who to approve and who to decline.

Implementation: Building Your Foundation

• Timeline: Typically 30 days to go live. This allows time for configuring your specific loan calculations and testing your legal documents.

• Effort: Mid-level. You will work with a dedicated implementation manager to map out your specific loan products, interest models, and approval rules.

Key Capabilities

1. Interest & Loan Products (The Math)

Unlike simple retail installment plans, Core handles complex amortization and interest.

• Multi-Product Support: Run different types of programs side by side, such as Term Loans (with APR), Lease-to-Own, Lines of Credit, or Merchant Cash Advances.

• Dynamic Offers: The system can automatically calculate offers based on the customer's data. You can set rules that offer a lower interest rate to customers with higher credit scores or cap the loan amount based on income.

2. Basic Underwriting (The Decision)

Moving beyond simple "accept/reject," Core helps you manage risk with Hybrid Underwriting.

• Automated Rules: Set "Knock-Out" rules to automatically decline applicants who do not meet your minimums. For example, you can auto-decline based on a credit score below 600 or a high debt-to-income ratio.

• Manual Review: Flag "borderline" applications for a human to review. You can require your team to review specific documents before clicking "Approve."

• Identity Verification: Built-in tools like Experian Precise ID help verify that the applicant is who they say they are, reducing fraud risk before the money leaves your account.

3. Documentation & Compliance (The Paperwork)

Lending requires strict adherence to regulations. Core automates the heavy lifting.

• Document Verification: Configure rules for required uploads, such as paystubs, government IDs, or bank statements.

• Contract Generation: Automatically generate Truth-in-Lending disclosures and loan agreements that populate with the correct interest rates, APR, and dates.

4. Servicing & Collections (The Repayment)

Once the money is out the door, Core helps you get it back and manage the relationship.

• Real-Time Status: The Servicing Center gives you a live view of who is current, who is delinquent, and who has renewed.

• Automated Communications: If a borrower misses a payment, the system automatically triggers email or SMS reminders based on the status.

• Renewals & Refinancing: Automated workflows to handle loan renewals or modifications for customers in good standing.

Who is the Core Tier For?

This package is specifically designed for organizations that have matured beyond simple sales support and are building a dedicated lending asset.

• Portfolio Builders: Businesses that intend to hold the debt on their books and generate revenue through interest or leasing fees, rather than just using financing to close a onetime sale.

• Risk-Based Lenders: Organizations that need to price risk dynamically, charging higher rates for riskier borrowers and offering competitive rates to prime borrowers.

• Regulated Entities: Lenders who fall under specific state or federal guidelines requiring APR disclosures, amortization schedules, and formal adverse action notices.

• Operational Teams: Businesses that have dedicated staff (even if it is just one person) assigned to underwriting reviews and portfolio management.

Comparison: Starter vs. Core

Summary of Benefits