Business Overdrafts

This guide explains the integration process for Solaris' Business Overdraft product, including the mandatory information you must collect from your customers and the necessary endpoints and webhooks you must integrate into your solution.

Introduction

Product specifications

Business overdrafts are only available for customers in Germany with a current bank account with Solaris. For step-by-step instructions on business onboarding for Digital Banking and Cards, check the Business onboarding guide.

Check the overview page for more details on the product specifications.

User journey

Your customers can apply for an overdraft on your frontend by completing the following steps:

  • Providing the mandatory information for overdrafts onboarding.
  • Consenting to Solaris' performing an account snapshot and credit checks in relation to the overdraft application.
  • Once the customer passes the credit checks, the application will be approved, and the customer receives a notification and the pre-contractual overdraft agreement and terms and conditions to sign.
  • The customer must sign the overdraft's terms and conditions and agreement.
  • Solaris creates the overdraft on the customer's account and the customer can use the overdraft limit right away.

Webhooks

Solaris recommends subscribing to the following webhook events to better automate your processes:

  • OVERDRAFT_APPLICATION: Sends notifications when the status of an overdraft application changes.
  • OVERDRAFT: The status of a business overdraft has changed.

For detailed instructions on implementing Solaris webhooks, check the webhooks documentation.


Integration flow

The following sequence diagram gives an overview of the integration flow for Business Overdrafts:

Diagram: Business overdraft flow

Integration steps

Integrate Solaris' Business Overdrafts by completing the following steps:

Business overdraft application

  1. Businesses initiate the overdraft process from your frontend.
  2. Collect the required information for the overdraft application from your customers on your frontend.
  3. Create a business overdraft application by completing Step 1

Scoring results

Solaris' credit scoring system assesses the application data and issues a verdict on the overdraft application with either rejection or acceptance.

Rejection:

If Solaris rejects the overdraft application, notify the customer of the rejection on your frontend.

Acceptance:

If Solaris accepts the overdraft application:

  1. Notify the business of the approval on your frontend.
  2. Offer the business the possibility of either accepting the initial overdraft limit or requesting a limit increase.

If the business decides to accept the initial overdraft limit:

  1. Display Solaris' terms and conditions and the overdraft loan agreement with the initial overdraft limit provided by Solaris as a checkbox in your UI.
  2. Record the business's consent to Solaris' terms and conditions and the overdraft loan agreement as a UTC timestamp.
  3. Confirm the overdraft by completing Step 2.
  4. Solaris credits the initial overdraft limit to the business's account.
info

Please note that once the business accepts the initial offer and the overdraft is confirmed, it's not possible afterward to request a limit increase.

If the business decides to request a limit increase:

  1. Create a limit increase request by completing Step 3.

Scoring results

Solaris' credit scoring system assesses the limit increase request and issues a verdict on the request with either rejection or acceptance.

Limit increase rejection:

If Solaris rejects the limit increase request:

  1. Notify the business of the rejection on your frontend.
  2. Display Solaris' terms and conditions and the overdraft loan agreement with the initial overdraft limit provided by Solaris as a checkbox in your UI.
  3. Record the business's consent to Solaris' terms and conditions and the overdraft loan agreement as a UTC timestamp.
  4. Confirm the overdraft by completing Step 2.
  5. Solaris credits the initial overdraft limit to the business's account.

Limit increase acceptance:

If Solaris accepts the limit increase request:

  1. Notify the business of the acceptance on your frontend.
  2. Display Solaris' terms and conditions and the overdraft loan agreement with the final overdraft limit provided by Solaris as a checkbox in your UI.
  3. Record the business's consent to Solaris' terms and conditions and the overdraft loan agreement as a timestamp.
  4. Confirm the overdraft by completing Step 2.
  5. Solaris credits the final overdraft limit to the business's account.

Overdrafts servicing

Check the section Servicing overdrafts for additional information on how to maintain and service overdrafts for your customers.

You can find detailed descriptions of these steps and their related endpoints in the following sections.


Step 1: Create business overdraft application

In this step, you must collect the mandatory information from the business in your sign-up flow and pass this information to Solaris by creating a business overdraft application for your customer.

The overdraft application includes all the required information about the business and links to other mandatory resources, such as identification_id and account_iban, which the credit scorer uses to initiate a series of credit checks.

POST Create business overdraft application

This endpoint creates a business overdraft application for the given business with the business_id specified in the path parameter.

Mandatory properties:

Add the following mandatory properties in the request body:

  • identification_id: The unique business identification ID, automatically generated after completing the business identification process. For more information, check the related guide.
  • account_iban: The IBAN of the business account.

Request URL

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POST /v1/businesses/{business_id}/overdraft_applications

Response example

The API call returns an object with a unique id for the business overdraft application, including the application status, set initially to scoring_pending, and the remaining attributes, which will be populated during the application lifecycle.

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  {
  "status": "scoring_pending",
  "overdraft_id": "null",
  "limit_increase_rejection_reason": "null",
  "initial_overdraft_limit": {
     "value": 1000,
     "unit": "cents",
     "currency": "EUR"
  },
  "identification_id": "4c74c804eaea5d2a2d64ef400a27a4d3bid",
  "id": "string",
  "final_overdraft_limit": {
     "value": 1000,
     "unit": "cents",
     "currency": "EUR"
  },
  "created_at": "13:10:2019 13:36:00",
  "business_id": "880bbac68a34add190786b9c74f4c82fcbiz",
  "account_iban": "DE87110101001000057123"
  }

Click here to view the full API reference

GET Retrieve business overdraft application

This endpoint returns the current status and details of an existing business overdraft application. For a list of possible values of the application status and their descriptions, check the Appendix.

Additionally, subscribe to the webhook event OVERDRAFT_APPLICATION to receive status updates on the overdraft application.

Request URL

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 GET /v1/businesses/{business_id}/overdraft_applications/{overdraft_application_id}

Response example

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  {
    "status": "scoring_pending",
    "overdraft_id": "string",
    "limit_increase_rejection_reason": "string",
    "initial_overdraft_limit": {
      "value": 0,
      "unit": "cents",
      "currency": "EUR"
    },
    "identification_id": "1bb49f9dec3a57ae69ad3c3183316c9dcidt",
    "id": "string",
    "final_overdraft_limit": {
      "value": 0,
      "unit": "cents",
      "currency": "EUR"
    },
    "created_at": "13:10:2019 13:36:00",
    "business_id": "880bbac68a34add190786b9c74f4c82fcbiz",
    "account_iban": "DE87110101001000057123"
  }

Click here to view the full API reference

POST Cancel business overdraft application

This endpoint cancels an existing business overdraft application. After calling this endpoint, the overdraft application status changes to canceled.

Request URL

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 POST /v1/businesses/{busiess_id}/overdraft_applications/{overdraft_application_id}/cancel

Click here to view the full API reference


Scoring results

After Solaris receive the business overdraft application and assesses the data, Solaris issues a verdict with either approval or rejection.

If Solaris approves the business overdraft application, you can offer the business two options in your flow:

important

Once a business confirms an offered overdraft limit, it's not possible to request a limit increase afterward.


Step 2: Confirm business overdraft

After Solaris approves the overdraft application, the application status changes to offered. In this case, you can offer the business the chance to request a limit increase or accept the initial_overdraft_limit. If the business decides to accept the initial overdraft limit, complete the following steps:

  1. Inform the business of the approval on your frontend, and show the initial_overdraft_limit and applicable interest rates.
  2. Collect and record the business's consent to Solaris' terms and conditions and the overdraft loan agreement as a UTC timestamp.
  3. Confirm the overdraft by calling the following endpoint.

POST Confirm business overdraft

This endpoint confirms an overdraft. After Solaris approves an overdraft application, you must confirm the overdraft to activate it on the customer's account. Afterward, the overdraft application status changes to confirmed.

Request URL

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 POST /v1/businesses/{business_id}/overdraft_applications/{overdraft_application_id}/limit_increase/confirm

Click here to view the full API reference

GET Retrieve business overdraft

This endpoint returns all the details of an existing business overdraft assigned to the business with the given business_id in the path parameter.

Additionally, subscribe to the webhook event OVERDRAFT to receive status updates about the overdraft.

note

Please note that the webhook sends status updates only. You must call the GET method for the full overdraft details.

Request URL

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 GET /v1/businesses/{business_id}/overdrafts/{overdraft_id}

Response example

The API call returns the overdraft object with the unique id and includes the overdraft's details, such as limit and overdraft_rate. The status returned in the response refers to the overdraft's status. For a list of possible values of overdraft statuses and their descriptions, check the Appendix.

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  {
  "status": "created",
  "overdraft_rate": 0,
  "limit": {
  "value": 1000,
  "unit": "cents",
  "currency": "EUR"
  },
  "interest_accrual_rate": 0,
  "id": "string",
  "created_at": "2020-20-03T18:01:48.000Z",
  "business_id": "880bbac68a34add190786b9c74f4c82fcbiz",
  "application_id": "string",
  "account_iban": "DE87110101001000057123"
  }

Click here to view the full API reference


Step 3: Request overdraft limit increase

After Solaris approves the overdraft application, the application status changes to offered. In this case, you can offer the business the chance to request a limit increase or accept the initial_overdraft_limit. If the business decides to request a limit increase, complete the following steps:

  1. Create a limit increase request by calling the following endpoint.
  2. If Solaris approves the limit increase request, complete Step 2: Confirm business overdraft.
  3. If Solaris rejects the limit increase request, the business can either:

POST Increase business overdraft limit

This endpoint requests a limit increase for an existing business overdraft application—the overdraft application status changes to limit_increase_decision_pending after calling this endpoint.

Request URL

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 POST /v1/businesses/{business_id}/overdraft_applications/{overdraft_application_id}/limit_increase

Click here to view the full API reference

Scoring results

An overdraft limit increase request is subject to an additional scoring step. Solaris assesses and scores the business overdraft application again and issues a verdict with either acceptance or rejection.

Acceptance

If Solaris approves the limit increase request, complete Step 2: Confirm business overdraft.

Rejection

If Solaris rejects the limit increase request, the business can either:

POST Cancel a business overdraft application

This endpoint cancels an existing business overdraft application. After calling this endpoint, the application status will change to canceled.

attention

This action cannot be revoked. A new application must be created if the customer wants resume the process.

Request URL

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POST /v1/businesses/{business_id}/overdraft_applications/{overdraft_application_id}/cancel

Click here to view the full API reference


Servicing overdrafts

This section includes important information about handling and monitoring active overdrafts.

Overdrafts limits and interest

Overdraft limits cannot be exceeded for any SEPA transfers, direct debits, payments, or withdrawals, except for charged interest fees by Solaris. Any payment exceeding the limit will be rejected.

Overdrafts monitoring

For specific overdraft-related events, you must monitor the account, implement specific event triggers, and provide pre-defined messages to the user. Solaris will provide the message texts.

You have to implement event triggers and send out reminders to customers in the following events:

  • The customer has used 90% of the overdraft limit or only 100€ remaining in the limit.
  • Three days before the interest payment is due to ALL customers with a used overdraft at the end of each quarter.

Overdrafts booking types

Using the overdraft limit reflects on the customer's account statement for interest charges. The following booking types are distinct to overdraft interest charges:

  • InterestOverdraft: The interest accrued in relation to the used portion of the overdraft limit.
  • InterestOverdraftExceeded: The interest accrued in relation to exceeding the overdraft limit (Note that the limit itself cannot be exceeded for regular transactions except for interest charges).

Overdrafts termination

To terminate an overdraft, you must send an overdraft termination request to Solaris either via creating a JIRA ticket or by sending an email to support@solarisbank.de. Solaris will process the request internally and remove the overdraft limit from the customer's account.

attention

Terminating an overdraft CANNOT be reversed. However, a customer can apply for a new overdraft.

Account closure for accounts with an overdraft

In case of Account Closure Requests (ACR) for accounts with an attached overdraft, you must first terminate the overdraft before initiating the ACR process.

Overdrafts in statements of account & bank statements

Each statement of account and bank statement generated for customers with overdrafts will contain the following overdraft information for the statement period:

  • overdraft_facility: Overdraft facility that has been granted to the customer.
  • overdraft_rate: The increased interest rate applied when going below the granted overdraft facility.
  • interest_accrual_rate: The daily rate at which interest is accrued on the used amount of an overdraft.
  • interest_accrued: The interest accrued, in Euro cents.

See the Account management guide for more information.


What's next?

Congratulations! You've successfully integrated Solaris' Business Overdraft solution.

Check the following appendices section for additional information on enums and testing data.

For an overview of Solaris' lending products, check the lending products overview page.

Useful resources

Check the following links for additional related guides and API reference documentation.


Appendix I: Enums

Business overdraft application status

These are the possible values for the field status in the business overdraft application resource.

Status Description
scoring_pending Solaris successfully received the overdraft application and is assessing and scoring the application.
offered Solaris approved the overdraft application, either in the initial scoring or accepted the limit increase request.
rejected Solaris rejected the overdraft application, either in the initial scoring or the limit increase request is rejected.
confirmed The overdraft application is confirmed and created on the customer's account.
limit_increase_decision_pending A limit increase request is created on the overdraft application, and Solaris is re-assessing the application.
information_required Solaris requires additional information from the customer.

Business overdraft status

These are the possible values for the field status, which indicates the status of an overdraft that is already offered.

Status Description
created The overdraft is created.
conditions_pending Interest conditions are pending and yet to be set by Solaris.
limit_pending Overdraft limit is pending and yet to be set by Solaris.
attached Overdraft is attached to the customer's account.