Understanding Loan Types

This section provides detailed information about the various loan types supported by the Financeable Aggregation API.

Overview

The Financeable platform supports multiple loan types, each with specific characteristics, requirements, and use cases. Understanding these loan types is essential for properly integrating with the API and creating applications.

Consumer Secured

A consumer secured application is an application for asset finance made on behalf of an individual or group of individuals in their private capacity, or in their role as a sole trader.

The 'secured' term refers to the fact that the asset being acquired is also collateral for the loan. This is analogous to a mortgage, whereby if the loan cannot be repaid by the mortgagor (borrower), the property is forfeited to the mortgagee, typically a bank.

Commercial Secured

A commercial secured loan application is made on behalf of a company or business. It is otherwise similar to a consumer secured application in that the assets acquired by the commercial entity act as a security for the loan.

Aside from the nature of the borrower, the asset types are distinct between consumer secured and commercial secured applications.

Personal Loan

A personal loan is an unsecured loan made to an individual for personal purposes. Unlike consumer secured loans, personal loans do not require an asset as collateral. Instead, they are assessed based on the borrower's creditworthiness and capacity to repay. The loan provides a cash amount that can be used for various personal expenses.

Business Loan

A business loan is an unsecured loan made to a company or business for commercial purposes. Unlike commercial secured loans, business loans do not require assets as collateral. These loans are typically used for working capital to cover operational expenses such as wages, inventory, supplier payments, and other business expenses. They are assessed based on the business's revenue, cash flow, and capacity to repay.