The Cash Advance function is for transactions known as "Cash Advances", "Deferred Presentment Loan", "Payday Loans", "Check Advances", "Check Cashing Loans" and other names.
The way this type of transaction works is the customer gives you a check for the loan amount plus the fees (interest or loan charge), the customer is given the amount of the loan, then at a given date the customer comes in and pays in cash the amount of the check and the check is returned to them.
In most cases the loan is renewed and the entire process is repeated. Most states require all paperwork to be redone for each term (new contract signed, new check issued by customer etc.). RTO Pro is setup to handle this non-renewable type of agreement as well as renewable contracts. You setup these features in Store Setup, under the Cash Advance tab.
To setup the contract for Cash Advances you go to Printer Setup and click on the Cash Advance tab.
RTO Pro can also be setup to print a check to be given to the customer when a new Cash Advance is loaded if you wish to give the customer a check instead of cash for the initial loan amount. This is setup under Printer Setup.
The APR calculation for the interest rate is listed below. The 360 or 365 is setup in Store Setup under the Other / Cash Advance tab.
(360 or 365 / Loan Days) * 100 * (Check Fee / Loan Amt.)
Note: Contracts templates that are included in RTO Pro are provided as samples only. Before using a contract in your store you should check the laws for your area and make sure all the required elements are in your contract.