This guide offers a high-level overview of Peach’s core concepts, from Loan Types to External IDs and more. Dive into each section for a detailed explanation of how these core concepts fit into the broader Peach ecosystem.
Loans are the foundational financial products in Peach's platform. Each loan represents a credit agreement between a lender and borrower, configured according to specific product rules and requirements.
Every loan in Peach consists of these essential elements:
Basic Information
- Unique identifiers (internal and external)
- Associated loan type
- Status (pending, originated, active, etc.)
- Primary borrower information
Financial Terms
- Amount financed
- Interest rates
- Payment schedule
- Fees
- APR and disclosures
Loans in Peach are structured to support both installment and revolving credit products. Each loan maintains:
- Balance tracking
- Payment history
- Transaction records
- Interest accrual
- Fee assessments
The specific behavior of each loan is determined by its associated loan type, which defines the rules and configurations that govern how the loan operates throughout its lifecycle.
Loans connect with various platform components to enable:
- Payment processing
- Balance management
- Statement generation
- Credit reporting
- Collections management
Learn more about specific loan features in our detailed guides and API Reference for Payment Processing, and Loan Management.
Loan Types in Peach form the foundation for various lending products, supporting Installment Loans and Lines of Credit. Installment Loans are fixed-term loans with scheduled payments, commonly used for personal, auto, and buy-now-pay-later loans. Lines of Credit are revolving accounts allowing borrowers to draw funds up to a credit limit, typical for credit cards and home equity products.
Each loan type is configured in collaboration with Peach's implementation team, customizable with specific rules and requirements, and capable of supporting multiple product variations. Every loan onboarded into Peach must be associated with a loan type, which determines how the loan behaves throughout its lifecycle.
Peach’s Fee Types define how, when, and up to what amount fees are applied to loans and lines of credit. When onboarding a loan, fee logic is configured to ensure Peach’s system functionality matches lenders’ product policies. To ensure programs remain compliant, fees can be configured at a state-by-state level. Peach supports the following fee types:
Origination Fees
Origination fees are amount-only fees assessed at the time of loan approval. These fees can follow one of three charging logics: summed with the first payment, amortized equally across payment periods, or charged and paid separately at time of origination without regard to payment schedules.
Draw Fees
For lines of credit, draw fees are amount-only fees assessed each time a draw is approved. Like origination fees, draw fees can follow one of three charging logics: summed with the first payment of the draw, amortized equally across the draw's payment periods, or charged and paid separately at time of draw without regard to payment schedules.
Dynamic Fees:
Dynamic Fees include late fees, Non-Sufficient Funds (NSF) fees, foreign transaction fees, service fees, modification fees and more. Charged throughout the loan lifecycle, these fees are assessed based on account status or triggers. Late fees, for example, trigger based on a loan becoming overdue, whereas modification fees can be programmatically linked to execution of changes to a borrower's payment plan structure such as due date deferral or loan term changes. Every dynamic fee type is associated with a loan type ID, and any loan associated with that loan type can utilize those dynamic fees.
Borrowers in the Peach platform can either be individuals or businesses. The Borrowers API enables you to create, update, retrieve, and search for borrower profiles. Each borrower profile includes essential information such as name, contact information, and unique identifiers such as phone or ID, and optionally include identity details such as SSN, ITIN, passport, and other PII like date of birth.
Learn more about borrowers
Due dates in Peach are configured at the loan type level and provide flexible options for both statement and payment scheduling. For lines of credit with monthly payments, lenders can set either fixed statement dates or fixed due dates, with the other date calculated automatically using a calendar day offset. For enhanced control, lenders can also configure fixed statements and due dates to occur on specific days each month—for example, statements on the 7th and payments due on the 28th.
The system intelligently handles date calculations based on whether the statement date falls before or after the due date. When a statement date precedes the due date (e.g., a statement on the 10th, due on the 25th), both dates occur in the same month. However, when the statement date follows the due date (e.g., a statement on the 30th, due on the 5th), the due date is automatically set to the following month. This flexibility allows lenders to design payment schedules that best suit their business needs while maintaining clear and consistent payment cycles for borrowers.
Interest accrual refers to how Peach calculates and applies interest charges on loans and lines of credit. Peach supports various interest accrual methods to accommodate different product types and promotional offers.
- Interest accrual logic can be configured to charge interest on principal only; principal and interest; or principal, interest and fees.
- In other words, accrual methods include simple, compound, and compound with fees.
- Promotional rates can also be added which will apply a discount to the interest rate on the specified dates within the loan lifetime.
- Special promo programs can be associated with a loan such as same-as-cash and deferred interest programs.
- Post-maturity interest accrual is supported for installment loans.
- Minimum interest charges can be applied for lines of credit.
Interest rates in Peach are designed to be as flexible, allowing lenders to easily manage and update rates throughout the entire lifecycle of a loan. Whether working with fixed or variable rates, Peach makes it simple to adapt to a wide range of lending scenarios.
Key Features
- Post-Origination Updates: Peach allows lenders to modify interest rates even after origination. Lenders can choose to apply changes going forward or make them retroactive.
- Support for Variable Rates: Peach has built-in support for adjustable rate products, allowing lenders to handle rate changes across their entire portfolio.
- Promotional Rates: Peach makes it easy for lenders to introduce promotional rate programs that fit their marketing initiatives.
- Automated Recalculation: Whenever an interest rate changes, Peach automatically recalculates amortization schedules and balance histories, ensuring everything stays accurate and compliant—whether it's for SCRA compliance or other servicing needs.
- Complete Rate Change History: With Peach's Loan Replay™ functionality, lenders get a full audit trail of all rate changes and their impacts, giving them complete visibility and peace of mind.
Loan Replay™ is a foundational capability within Peach’s loan management system & reporting suite. Loan Replay™ enables lenders to:
- Handle retroactive changes to loans programmatically.
- Preserve complete loan history before and after changes.
- Improve accuracy and reduce manual errors in complex scenarios.
- Reduce resources allocated to manual operations.
Loan Replay™ is triggered automatically and re-calculation is automated, which maintains the data integrity and compliance of a loan when complex actions are performed on a loan such as backdated payments, failing past transactions, and retroactively changing interest rates
Learn more about Loan Replay™
Peach takes care of the complexities of loan accounting through a balance management system. At its core, the platform tracks every financial event - from payments and credits to fees and interest - maintaining real-time balances that are always accurate and accessible. Peach also provides instant access to balance information through our API, daily snapshots, and customizable loan tapes.
Let’s begin with some key terminology related to our Peach platform. In our system, we refer to payments as "Transactions." If you’re dealing with credit cards, keep in mind that card swipes are known as "Purchases." Familiarizing yourself with this language will make it easier to navigate our platform.
When a borrower makes a payment, Peach’s processing system goes well beyond just keeping records. Depending on a lender's loan configuration, each payment flows through a customized waterfall, automatically distributing funds across different buckets like principal, interest, and fees.
Moreover, Peach offers a variety of payment options. Lenders can utilize our integrated payment processor for handling ACH transfers, debit cards, and credit cards, or they have the flexibility to use their own processor.
For detailed implementation guidance, refer to the Payment Instruments API Reference.
External IDs let you use your own unique identifiers when working with Peach's platform. This feature streamlines the integration of Peach into your existing systems, ensuring everything remains organized and cohesive. The key benefits include:
- A smoother integration process.
- Prevention of duplicate objects with the same External ID (idempotency).
- Reduced errors in data synchronization.
- Improved traceability across various platforms.
An External ID is a custom, distinct identifier that you can assign to specific objects in your configuration. While each API object has an internal ID defined by Peach, you can also apply unique External IDs to specific objects. Once assigned, you can access objects using either the External ID you've assigned or Peach's internal API ID.
External IDs can be used with various objects in Peach's system, including but not limited to:
- Borrowers (People or Businesses)
- Loans
- Contacts
- Payment Instruments
You can include your External ID when creating or updating objects through Peach's API.
Objects can be fetched using their External ID instead of Peach's internal ID.
When creating an object through Peach's API, you can include your External ID in the request payload. This allows you to reference the object using this External ID in future API calls.
{
"externalId": "YOUR_UNIQUE_ID_HERE",
// ... other object properties
}When updating an object, you can use your External ID to identify the object instead of Peach's internal ID. This simplifies the process and ensures consistency across your systems.
To retrieve an object, you can query Peach's API using the External ID. This feature is particularly useful when integrating with external systems that already use a unique identifier for the same objects.
To retrieve an object using its External ID, use the following format:
GET /api/[object-type]/ext-YOUR_UNIQUE_ID_HEREFor example, to retrieve a borrower using their External ID:
GET /api/people/ext-AAABBBCCCWhere AAABBBCCC is the ID in your internal system.
Peach's API uses a standardized approach to handle dates, times, and timezones, which is crucial for accurate loan management and reporting.
Key Concepts
- Timestamps
- Format: ISO standard (YYYY-MM-DD HH:MM:SS)
- Time Zone: Always Coordinated Universal Time (UTC)
- API Attributes: End with "At" or “_at” (e.g.,
createdAt,originatedAt)
- Dates
- Format: ISO standard (YYYY-MM-DD)
- Time Zone: Represented in the loan type’s time zone configured on the company, and loan type. if not on a loan type, falls back on the company.
- API Attributes: End with "Date" or “_date) (e.g.,
effectiveDate,scheduledDate)
- Product Time Zone
- Configured for each company and loan type.
- Determines the effective date of various objects in the Peach system such as purchases, transactions, and fees.
- Impacts when objects affect loan balances.