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A line of credit is revolving: the business can draw funds up to a credit_limit, repay, and draw again. Model it as a single long-lived loan, record each draw as a proceed, and record repayments as loan payments.

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Step 1: Create the line of credit

Create a loan with loan_type set to LINE_OF_CREDIT and a credit_limit. Set an external_id so you can reference it later. You can include the first draw in proceeds now, or add draws later (next step).
Request
curl --request POST \
  --url https://sandbox.layerfi.com/v1/businesses/{businessId}/loans \
  --header 'Authorization: Bearer <token>' \
  --header 'Content-Type: application/json' \
  --data '{
  "loan_type": "LINE_OF_CREDIT",
  "external_id": "loc-001",
  "display_name": "Revolving credit line",
  "origination_date": "2024-01-15",
  "credit_limit": 10000000
}'

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Step 2: Record draws

Each time the business draws on the line, add a DISBURSEMENT proceed with the Create a loan proceed endpoint, using the loan’s id from the create response.
Request
curl --request POST \
  --url https://sandbox.layerfi.com/v1/businesses/{businessId}/loans/{loanId}/proceeds \
  --header 'Authorization: Bearer <token>' \
  --header 'Content-Type: application/json' \
  --data '{
  "loan_proceed_type": "DISBURSEMENT",
  "external_id": "loc-001-draw-1",
  "amount": 2500000,
  "date": "2024-02-01",
  "method": "ACH"
}'

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Step 3: Record repayments

Each repayment is a loan payment split into PRINCIPAL and INTEREST (explicit splits are required). Because draws and repayments on a line of credit are irregular, record each payment as it happens rather than pre-creating them.
Request
curl --request POST \
  --url https://sandbox.layerfi.com/v1/businesses/{businessId}/loans/payments \
  --header 'Authorization: Bearer <token>' \
  --header 'Content-Type: application/json' \
  --data '{
  "loan_external_id": "loc-001",
  "external_id": "loc-001-payment-2024-03-01",
  "amount": 500000,
  "date": "2024-03-01",
  "splits": [
    { "split_type": "PRINCIPAL", "amount": 450000 },
    { "split_type": "INTEREST", "amount": 50000 }
  ]
}'