> ## Documentation Index
> Fetch the complete documentation index at: https://docs.truv.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Paycheck Linked Lending

> Automatic loan repayment directly from paycheck

Collect loan repayments automatically by deducting payments directly from the borrower's paycheck. Achieve higher repayment rates and lower default risk compared to traditional ACH-based collections.

<Tip>
  **Try the demo** -- Run the [Paycheck-Linked Loans demo](/credit/integration/pll) to see payroll deduction setup working end-to-end. [Clone the demo app ->](https://github.com/truvhq/demo-apps)
</Tip>

***

## How it works

<Steps>
  <Step title="Borrower connects payroll">
    The borrower authenticates with their employer's payroll system through [Truv Bridge](/developers/sdks/overview).
  </Step>

  <Step title="Configure deduction">
    You specify the repayment amount as a fixed dollar value or a percentage of net pay.
  </Step>

  <Step title="Automatic deductions begin">
    Each pay period, the configured amount is deducted from the borrower's paycheck.
  </Step>

  <Step title="Payment delivered">
    The deducted payment is sent directly to your collection account.
  </Step>
</Steps>

***

## Benefits

<CardGroup cols={2}>
  <Card title="Higher Repayment Rates" icon="chart-line">
    Payments happen before discretionary spending
  </Card>

  <Card title="Lower Default Risk" icon="shield-check">
    Automatic, consistent payments every pay period
  </Card>

  <Card title="Better Borrower Experience" icon="face-smile">
    No manual payment management or missed due dates
  </Card>

  <Card title="Real-Time Visibility" icon="eye">
    Know payment status immediately through webhooks
  </Card>
</CardGroup>

***

## Deduction types

| Type      | Description           | Example              |
| --------- | --------------------- | -------------------- |
| `amount`  | Fixed dollar amount   | \$200 per paycheck   |
| `percent` | Percentage of net pay | 10% of each paycheck |

<Note>
  Paycheck Linked Lending uses the **User Token flow** instead of Embedded Orders. This provides ongoing access to the payroll connection for recurring deductions.
</Note>

***

## Data coverage

### Payroll Providers

Truv connects to payroll providers covering 85%+ of US employees:

| Provider      | Coverage            |
| ------------- | ------------------- |
| ADP           | \~20% of US workers |
| Paychex       | \~10% of US workers |
| Workday       | Large enterprises   |
| UKG (Kronos)  | Healthcare, retail  |
| Paylocity     | Mid-market          |
| Gusto         | Small business      |
| And 100+ more |                     |

***

## Report structure

The PLL report returns the deduction status and deposit configuration for a borrower's payroll link.

| Field                            | Description                                           |
| -------------------------------- | ----------------------------------------------------- |
| `id`                             | Unique report identifier                              |
| `status`                         | Request status (`new`, `done`, `error`)               |
| `deposit_details.deposit_type`   | `amount` (fixed) or `percent` (percentage of net pay) |
| `deposit_details.deposit_value`  | Configured deduction value                            |
| `deposit_details.account_number` | Target bank account number                            |
| `deposit_details.routing_number` | Target bank routing number                            |
| `deposit_details.bank_name`      | Target bank name                                      |
| `deposit_details.account_type`   | `checking` or `savings`                               |
| `finished_at`                    | Timestamp when the report completed                   |

<Accordion title="Example PLL report response">
  ```json theme={null}
  {
    "id": "24d7e80942ce4ad58a93f70ce4115f5c",
    "status": "done",
    "finished_at": "2021-04-06T11:30:00Z",
    "access_token": "48427a36d43c4d5aa6324bc06c692456",
    "tracking_info": "user123456",
    "deposit_details": {
      "account_number": "16002600",
      "routing_number": "123456789",
      "bank_name": "TD Bank",
      "account_type": "checking",
      "deposit_type": "amount",
      "deposit_value": "200.00"
    }
  }
  ```
</Accordion>

See the [PLL Report API reference](/api-reference/deposit-switch/link_detail_reports_pll) for the full schema.

***

## Manage the lifecycle

Once a Paycheck Linked Lending deduction is active, you can:

* **Update the deduction amount**, adjust as the loan balance changes
* **Pause deductions**, temporarily suspend during hardship periods
* **Cancel deductions**, remove when the loan is fully repaid

***

## API reference

<CardGroup cols={2}>
  <Card title="Bridge Token" icon="key" href="/api-reference/bridge-token/object">Create tokens for Truv Bridge</Card>
  <Card title="PLL Report" icon="file-lines" href="/api-reference/deposit-switch/link_detail_reports_pll">Paycheck Linked Lending report</Card>
  <Card title="Link Details" icon="link" href="/api-reference/deposit-switch/link_detail_reports_pll">PLL link detail report</Card>
  <Card title="Users" icon="user" href="/api-reference/users/object">Create and manage users</Card>
</CardGroup>

***

## Best practices

<AccordionGroup>
  <Accordion title="Cancel deductions when the loan is repaid" icon="circle-check">
    Always cancel the deduction when the loan balance reaches zero to avoid over-collection and maintain borrower trust.
  </Accordion>

  <Accordion title="Use fixed amounts for predictable repayment" icon="money-bill">
    Fixed dollar deductions provide consistent repayment schedules. Percentage-based deductions are useful when income varies.
  </Accordion>

  <Accordion title="Monitor for payroll connection changes" icon="webhook">
    Watch for `task-status-updated` webhooks to detect if the borrower changes jobs or their payroll provider rejects the deduction.
  </Accordion>
</AccordionGroup>

***

## Next steps

<CardGroup cols={2}>
  <Card title="Implementation Guide" icon="code" href="/credit/integration/pll">
    Step-by-step Paycheck Linked Lending setup
  </Card>

  <Card title="Bridge Widget Guide" icon="key" href="/developers/integration/bridge-widget/overview">
    Understand the User + Bridge Token integration flow
  </Card>
</CardGroup>