Principal Excluding Discount LOC Linking

We have added a new configuration option to LoanPro's line of credit account linking functionality: Principal Excluding Discount.

This option allows users to exclude the discount portion from the available credit calculation. By selecting this option, the system calculates the reduction by taking the linked loan's principal balance and subtracting the remaining discount, ensuring an accurate representation of available credit.

How can I use it?

If your business tracks balances within the "Discount" bucket of a loan and utilizes account linking, you can use this setting to prevent those balances from artificially suppressing a borrower's available credit on a line of credit account.

You can apply this setting in two ways: a global default within the LOC program, or on an account-by-account basis.

To set this option as the global default, navigate to the Programs page and edit an existing program. Next, navigate to the Rollovers & Linking tab, and select "Principal Excluding Discount" within the Available Credit Impact section.

To use this option when linking an loan account to a line of credit account, start by navigating to a line of credit account. Next, navigate to Account Settings > Account Linking. Click Link Account to create a new link. Then, select "Principal Excluding Discount" from the Balance to subtract dropdown menu.

Visit our Link accounts API documentation to learn how to use this feature via the API.

View the demonstration below for a step-by-step guide on how to use this feature: