How to set up a rent-to-own product
A product is a template of contract terms: how to calculate the schedule, how often to pay, what late fees to charge. You can't set up a contract without an active product.
When a contract is set up, the terms are copied from the product. From then on they live in the contract: editing the product doesn't change contracts that already exist.
How to create a product
- Open “Rent-to-own” → “Products”.
- Click “Create product”.
- Fill in the name and terms — the fields are described below, and the less obvious ones have a hint under the field.
- Save.
If a field is filled in incorrectly, the system highlights it and tells you what to fix.
Product fields
| Field | What it means |
|---|---|
| Name | How the product appears in the contract wizard |
| Formula | “Equal split” — equal parts without interest; “Annuity” — equal payments with interest at the annual rate |
| Period unit | How often regular payments are due: day, week or month |
| Term (periods) | How many regular payments are in the schedule, at least one |
| Annual rate, % | Interest on the unpaid part of the buyout price. Works only with an annuity |
| Rental part per period | Not the whole payment, only the rent: it is added to each regular row on top of the buyout part and interest. Payment per period = rental part + interest + buyout part |
| Grace days | How many days after the due date a row is not considered overdue and no late fee is charged. Default is 5 |
| Late fee type | No late fee, fixed, or percent per day |
| Late fee amount | For fixed — an amount; for “% per day” — a percentage of the row's unpaid balance per day |
| Risk threshold | How many overdue rows move the contract to “At risk”. Default is 2 |
| Reminder, days | How many days before a payment's due date the client gets a reminder. Default is 3 |
| Active | Only active products are offered in the contract wizard |
Product terms can be changed in a specific contract
The contract wizard fills in the product's terms, but on the terms step any of them can be changed for this contract. The product itself stays the same.
How the schedule is calculated
The first regular row falls one period after the contract start date:
| Period | When the next payment is due |
|---|---|
| Month | The same day of the next month. If that day doesn't exist, the last day of the month |
| Week | Seven days later |
| Day | The next day |
The down payment and setup fee, if the contract has them, are separate rows dated on the contract start date.
- Equal split. The buyout price minus the down payment is divided by the number of periods. Rounding cents go to the last row, so the buyout parts add up to exactly the price.
- Annuity. The payment is the same, but its composition changes: interest is charged on the remaining buyout price, and it gets smaller with each payment. The annual rate is divided by 12, 52 or 365, depending on the period unit. With a zero rate, an annuity is calculated as an equal split.
- The rental part is added to each regular row as the same amount.
Example: equal split, 12 months, rate 0, rental part 0, buyout price 120 000 with no down payment — 12 rows of 10 000.
How to change a product
- Open “Products”.
- Click “Edit” on the product row.
- Change the fields and save.
The changes apply only to contracts set up after the edit.
How to take a product out of use
A product with at least one contract can't be deleted — even if the contract is cancelled or closed: contracts refer to the product. Such a product is made inactive instead: it disappears from the wizard but stays in the product list.
- Click “Delete” on the product row and confirm.
- If the product is not in use, it disappears from the list.
- If the system replies “This product is used in contracts”, click the “Deactivate” button that appears next to it.
You can also make a product inactive without trying to delete it: open it for editing, clear the “Active” checkbox and save.