Looking for a way to improve your loan management? Discover modern loan management systems (LMS) and learn how to save up to 60 % more time, eliminate 70 % of manual processes and dramatically increase client satisfaction. From automation of routine tasks to the use of AI – this article will show you how to strengthen your position in the field of financial services.
Loan management systems: What they are and how they can help you
A loan management system (LMS) is a digital platform for comprehensive management and loan agreement automation in all stages, from arrangement to settlement.
The software simplifies demanding tasks related to loans, is capable of working with large volumes of data and turns your loan agenda electronic. Its automation capabilities minimise errors, increase efficiency and promote business goals, thus ensuring the smooth and flawless running of all your loan processes.
TIP: Are you a credit institution, credit broker or finance lessor? Read our article and learn 7 key ways how LMS can promote the growth and efficiency of your company.
What are the general advantages of LMS?
The main advantages of these systems are:
- Savings on time and work Cloud platforms eliminate the need to perform manual tasks during routine activities. This helps you focus on more important activities.
- Automation and bulk operations Loan management systems are capable of automating tasks such as accounting, invoicing, bulk changes to agreements and setting of calculation parameters.
- Reduced error rate Automated checks minimise human error during manual inputting of data. LMS will help you process a larger volume of loans more efficiently.
"The use of LMS is key to optimising and simplifying financial processes. For instance, with OneCore Loans App you can automate 70 % of your processes and save 60 % more time on top of that through bulk changes in the agreement portfolio," says Adam Hermann, Account Manager
TIP: LMS can dramatically simplify your work. See for yourself with no strings attached in a Free Trial.
Efficient payment planning
Modern loan management systems such as the OneCore Loans App bring several benefits when planning payments:
- Automatic payment planning based on conditions agreed with the debtor, which ensures timely and accurate repayments.
- Ability to use various payment channels according to the preferences of the debtor for improved comfort and flexibility.
- Consistent and reliable payment process which minimises the risk of late payments and ensures a smooth course of financial transactions.
Fluid payment processing
Integrated tools for processing transactions in the loan management system are key to ensuring a smooth and successful payment course.
These tools run like quiet but powerful engines that enable a fluid flow of funds. They ensure the integration of payments into the overall payment system and thus simplify the process for all involved while increasing the efficiency and reliability of the entire system.
Accurate accounting and reporting without errors
LMS automates the process of entering loans into accounts, reduces manual errors and simplifies the process of comparing the balances in the books with creditor statements and bank accounts. This ensures the accuracy of the balance sheet and the integrity of financial records.
TIP: Also read about What reporting options financial software can unlock
Flexibility in payments as a cornerstone of debtor satisfaction
Modern loan management systems offer the necessary versatility to enable debtors to manage their financial obligations without issue.
The software is particularly useful for those who have to deal with late payments and gives them the chance to quickly catch up on missed payments. In addition, it allows adapting payment plans to accommodate irregular incomes and personal preferences to ensure that the payment terms are not just fixed rules, but flexible agreements that fit the needs of the individual.
Different payment channels
Imagine how comfortable it would be if your clients could pay their loans through their favourite channel – be it an online portal, a mobile app or a bank transfer.
The ability to choose from different payment methods in LMS brings three key benefits:
- Increased client satisfaction: Thanks to the ability to choose their preferred payment channel, clients can pay the way that suits them best.
- Reduced risk of late payments: The ability to use different payment methods makes it easier for clients to pay regularly, which reduces delays.
- Better oversight and simplification of the loan management process: Integrating multiple payment channels gives you better oversight and simplifies the entire payment process, which in turn improves the efficiency of your loan management.
Customisable payment plans for better client relationships
OneCore Loans App offers highly individualised payment plans that reflect the unique financial needs of each client. This flexibility dramatically strengthens the relationship between creditors and debtors. The customisation options, which include customising the hierarchy of payments and early repayment, also lead to sustainable payment structures.
Efficient solution to late payments
LMS also significantly simplify the management of late payments and brings key benefits:
- Customisation of payment plants
- Prioritisation of outstanding payments
- Reduction of delays
- Clear communication with debtors thanks to customisable tools
- Notification of debtors about upcoming dates through digital means
- Minimisation of risk of missed payments
Improved payment methods and better transparency allow creditors to quickly respond to delays and thus help reduce administrative load and errors.
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