Running a company that offers loans may seem like a relatively easy thing, but when business starts picking up and you have more customers than you can handle, hiring someone to keep track of all the repayments just would not cut it. A loan management software would be better equipped to offer you reminders when a repayment is due soon.
What is a loan management software?
It is a software that allows you to keep track of all your clients’ details, their credit rating, the amount borrowed and terms of repayment, etc. It can either be in-house or cloud based (which is more costly). An in-house system can only be accessed offline, which makes it cumbersome if you are looking for on-the-go updates. A cloud based system allows you to access information anytime, anywhere at the touch of your fingertips. The only downside is that it is prone to hackers if it is not secured enough.
The benefits of having it
The main benefit of having a loan management software allows you to access everything at the touch of your fingertips. Communication modules like email, SMS, LiveChat can be integrated into the software to hasten the communication process with the client. Once a contract is generated by the user, it can also be integrated into the software by creating a loan account to capture all the details and it will show the principal amount borrowed, monthly repayments, etc. This increases the productivity of employees, which in turn, allows them more time to focus on other tasks at hand.
Security concerns
In an online based software, there are always security concerns such as hackers accessing it to steal data. A software should always be equipped with up-to-date security measures to protect against unwarranted cyber attacks. Companies like Mutual Service provide software that is highly encrypted and updated with the latest security measures that are similar to that of a bank.
Ongoing support
Providing the timely support when experiencing issues such as a bug, crash or glitch is essential in every loan management software. Not resolving these issues quickly could mean a downtime for your company, which will lead to a loss of leads, decreased profits, and even missed repayments from the clients if they forgot about the deadline. The company that provides the software should be an efficient one, providing a 24/7 support helpline to their clients.
Additional services
Some loan management software also offers additional services such as a multi-payment platform which allows you to pay by bank transfer, PayPal, DDR, Bpay, etc. They would also offer reports by analysing your clients and see which are the potential businesses to acquire.
With the rise in technological tools, keeping track of data has been so much easier and businesses have been utilising software to automate routines such as payment reminders, auto-generation of invoices, inputting of data, etc. After all, the time can be invested in generating leads through advertising, setting up appointments with potential prospects, thus increasing the revenue for the company.