Fronting loans

This guide contains all information about Solaris' Fronting Loans products, including key concepts and the necessary endpoints for creating, activating, and servicing Fronting Loans applications.


What is a fronting loan?

Solaris Fronting Loans solution allows you to offer single loans to your customers by leveraging Solaris' banking license. Solaris, as the fronting bank, takes over the functions that require a banking license, such as customer identification and vetting (KYC/BKYC), credit risk checks, and loan payout.

After a loan is paid out to the requesting customer, Solaris sells the loan agreement and receivables back to you or other investors. Therefore, fronting loans don't involve any servicing activities from Solaris, such as collection or dunning.

How does it work?

In the lifecycle of a fronting loan, Solaris acts as the fronting bank that performs the initial regulatory steps until a loan is paid out.

  • You start the process by collecting the required information from your customers and doing your internal due diligence and credit risk checks.
  • After you approve the customers, prepare the loan agreement and applicable interest rates and pass all the details and loan application to Solaris.
  • Your customers must go through an identification process (KYC/BKYC) and credit risk checks by Solaris to approve or reject the loan application.

Money flow:

After successful identification and approval of the loan application, the money flow goes as follows:

  • The requested loan amount is debited automatically from your collateral account to Solaris settlement account.
  • Solaris triggers the loan payout by sending the requested loan amount from the settlement account to the customer's account via an external transfer.
  • If applicable, Solaris transfers the credit commission amount (agio) from the settlement account to your collection account.
  • Solaris sells back the loan agreement and receivables to you or other investors, who take care of the rest of the loan lifecycle.

Solaris Fronting Loans products

Our API-enabled Fronting Loan solutions are offered to the following customer segments:

  • Businesses (in Germany and France)
  • Consumers (Retail customers) (Currently only in Germany)

Fronting Loans guides

The following links will take you to the integration guide of each Fronting Loan product.

Fronting Loans API reference

The following links will take you to the API reference documentation for the Fronting Loans products.