What To Look For In Loan Originating Software
When your business involves loaning money, either in exchange for a product or as cash, you need to have a reliable way to keep track of everything. Luckily, technology has made it so most of the tasks required to keep an accurate account of all loans can be automated. Not only will this reduce the number of simple mistakes (including math mistakes,) it will also save time and keep everything better up to date. Loan originating software is available that can do almost every aspect of a loan. Here are a few things to look for when getting new software.
The more a customer can do for themselves, the easier it is for you and your employees. Look for a program that can be used online, on your website, with client interface capabilities. Potential customers can go to your site to apply for a loan. If approved, they can then log in to see the status of the loan, find the due date, and to make payments. They can also message you through the program if they have any questions or concerns.
Accounting Software Integration
A very important aspect of any loan originating software is the ability to integrate with your current accounting program. Once the loan has been established, there will be interest, payments, and possibly the amount of the loan increased. This will result in changes to accounts receivable, cash, interest income, and possibly inventory. If the software programs work together, all this can be done seamlessly and with very few, if any, mistakes. Your accounts will always be kept up-to-date as there will be no need for an employee to search for transactions and enter them manually.
A good loan software program can be set up to take information input from potential borrowers, compare it to the parameters you set up, and then make the decision whether to approve the loan or not. Of course, any applications that are denied can then be looked at by a loan officer for a final decision. This can increase the number of loans given, which will increase the amount of money you earn on interest.
If you are looking for a way to keep better track of and control over the loans your business gives out, you need loan origination software that suits the type of financial dealings you have. Make sure it is easy for customers to use, and will keep your other financial programs up to date and you will find there is a lot less stress over all financial aspects of your company.