This article is in continuation to How to Set-up Payment Options. Please visit the previous article if you want to see all the available payment types.

## Loan (Advanced)

This option allows the customer to pay for the system over a number of installments, with advanced options like delayed down payment, initial loan term, and final loan term.

Click on **Create **on the top left hand corner on the list of payment options. You will get the page below.

- Give your payment option a title.
**(Note: This is how your payment option will appear in the proposal)** - Give your payment option a short description.
- In the Payment Type drop down, select
**Loan (Advanced)(Beta).** - You can toggle
**Collect Signature at Checkout**to collect the customer's signature at checkout.**(Note: this will not appear if you have not got Customer-Checkout Enabled)**

The advanced loan option is divided into into three sections:

**Down Payment**

The down payment can either be instant or delayed.

- Instant (default option) - is the down payment which is paid upfront.
- Delayed - is the down payment which is payed after N number of months. This option is activated by entering a value of months into the duration field.

You can toggle **Enable Down Payment **to add and set the Down payment options.

Then you can enter the following details for down payment:

**Amount(%)**- This is how much the customer should pay upfront, as a percentage of the total price of the system. (In case of delayed Down payment, the amount includes the interest rate and the dealer fee).**Minimum and Maximum ($)**- You can then set the minimum and maximum amount which should be deposited (OPTIONAL).

In some cases (like, Tax credit rebates and incentives) you can give an option to the customer for a Delayed Down payment, for which you can define the duration, the interest rate and the dealer fee (which includes the interest):

**Duration**- Duration (in Months) for the delayed payment, so the customer pays the deposit after N number of months.**Interest Rate**-**Dealer fee (% or $)**- The dealer fee which gets charged to the customer, for opting in for the delayed down payment option. This fee is included within the amount (%) which was defined earlier.

**Initial Loan**

Initial loan has different options for the payment frequency. After the period of the initial loan ends, the balance amount gets moved to the Final Loan term.

You can toggle **Enable Initial Loan term **to add and set the Initial Loan term options.

Then you can enter the following details for the initial loan term:

**Payment Frequency**- Payment frequency can be chosen as Weekly/Fortnightly/Monthly/Annual or None. (Note: In the case of None being the payment frequency, interest gets accrued over the term on N number of months and that accrued interest, gets moved to the final loan term.)**Term (periods)**- Enter the no. of repayment periods for the loan. The Term (periods) depend on the Payment frequency chosen, for example payment frequency Monthly, would mean the Loan term period in Months.**Interest Rate(%)**- Enter the loan interest in % here and the interest would get compounded at the end of every period.**Dealer fee (% or $)**- The dealer fee which gets charged to the customer, for opting in for the initial loan option. This fee can can have a fixed $ and can also be a % of the Principal Reduction Amount.**Amount**- Enter the % of the amount to be included in the initial loan term**Minimum and Maximum ($)**- You can then set the minimum and maximum amount which should be included in the initial loan term (OPTIONAL).

You also have an option to include a Bullet/Balloon payment as part of the initial loan term.

**Final Loan**

Final loan is the default loan setting when the initial loan toggle is not enabled. The loan terms work sequentially and so, the final loan term begins once the initial loan term has ended. The amount doesn't need to be defined here because it includes whatever the balance amount is after the down payment and the initial loan terms.

You can enter the following details for the initial loan term:

**Payment Frequency**- Payment frequency can be chosen as Weekly/Fortnightly/Monthly/Annual or None.**Term (periods)**- Enter the no. of repayment periods for the loan. The Term (periods) depend on the Payment frequency chosen, for example payment frequency Monthly, would mean the Loan term period in Months.**Interest Rate(%)**- Enter the loan interest in % here and the interest would get compounded at the end of every period.**Dealer fee (% or $)**- The dealer fee which gets charged to the customer, for opting in for the initial loan option. This fee can can have a fixed $ and can also be a % of the Principal Reduction Amount.

You also have an option to include a Bullet/Balloon payment as part of the final loan term.

**Bullet/Balloon payment**

Both the initial and final load terms have an option to enable Bullet/balloon payments. A balloon payment is a lump sum that the customer would pay at the end of the loan term. This will allow the customer to reduce their recurring payments during the course of the loan and then make a bulk payment in the last period of their term.

You can toggle **Bullet/Balloon **to configure it for both, the initial and the final loan terms in their respective sections

Then you can enter the following details for the loan Bullet payments:

**Amount**- Enter the % of the loan amount to be included in the final bullet/balloon payment.**Minimum and Maximum ($)**- You can then set the minimum and maximum for the payment amount (OPTIONAL).

### Other Settings

In other settings you can follow the following steps:

- Select whether you would like to enable Auto-Apply for this option and fill out the details for this.
- Use the text-editor to enter in the Terms and Conditions which are specific to this payment option and will only be displayed when this option is selected.
- Click the button to finish creating this payment option.

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