8 Tips to Better Loan Management
1: Ensuring you make the right lending decisions is essential to...
Lending money is easy. Ensuring you make the right lending decisions is essential to recovering the loans. Be clear in your lending policies and make sure your decision support systems are clear for all lenders, support your business model and easy to update as the market conditions change.
Using the finPOWER Connect Workflow Engine, a consistent application of lending rules and decision making processes can be applied to each and every Application regardless of who processes it.
2: Get a Direct Debit facility from your Bank or work through a
Make it easy for your clients to pay. Get a Direct Debit facility from your Bank or work through a Direct Debit provider. Initiate the payment for your client – do not wait for them to pay you.
The finPOWER Connect Advanced Banking Add-On allows you to schedule your Direct Debit Payments then export them to your Bank or DDR Provider when due. Direct Debit schedules can be fully managed to easily meet your clients’ requests to change a due date, hold DDRs or change bank accounts. Multiple Bank Accounts can also be debited for the same loan repayment allowing multiple parties to repay a single loan.
3: Reminding your client a payment is due before it is actually due is all that is...
Send out a payment reminder before payments are due. Reminding your client a payment is due before it is actually due is all that is needed to improve your payment rate and cashflow.
finPOWER Connect can be configured to automatically send an e-mail or txt to your clients, reminding them of their upcoming payment. A simple, no fuss and “no-work” tool to improve the performance of your ledger.
4: Your LMS (Loan Management System) should tell you as soon as a payment is missed...
Monitor and Action your overdues. Your LMS (Loan Management System) should tell you as soon as a payment is missed. Make sure you have credit control procedures that are timely and effective and are initiated as soon as a payment is missed. Do not wait 3 days for a letter to be delivered. Send a txt or email and chase that missed payment with a personal contact if possible.
finPOWER Connect monitors your missed payments on a daily basis and can respond automatically to overdue accounts according to your Credit Control procedures. An escalating series of txt messages, e-mails and letters can be automatically generated and a Workflow can be triggered to notify your Collection Team.
5: Know when a payment is due and be alerted to late...
Reschedule missed payments immediately. Know when a payment is due and be alerted to late payments, initiate payment rescheduling as soon as payments are missed.
Being able to work with your client to allow them catch up on arrears breeds better relationships and improved cash flow. finPOWER Connect has the ability to easily reschedule missed payments, make payment arrangements and even record Promise To Pay schedules. And it reminds you when these arrangements are not met.
6: Maximise fee revenue. Disclose when and where fees can be charged and..
Maximise fee revenue. Disclose when and where fees can be charged and make sure they are charged by having them automatically applied to accounts.
finPOWER Connect can automatically charge a wide range of fees and interest. Whether it is a fee to recover the costs of a TXT message or letter, or default fees and interest on overdue accounts, revenue can be generated automatically or initiated by the User.
7: Identify your best preforming clients and make sure they are acknowledged and...
Keep in close contact with your best clients. Identify your best preforming clients and make sure they are acknowledged and made to feel special. Whether it be special offers on their birthdays, acknowledgement of hobbies and interests or just to say thanks for being a great customer.
finPOWER Connect offers a comprehensive client file that incorporates CRM type functionality. Files notes and action dates remind you of important events, outside interests can be recorded as well as easy access to loan performance information. Thank You letters at the end of a loan can be automatically generated. finPOWER Connect can assist you to up-sell and cross-sell different promotions to ensure repeat business and your best performing clients stay that way.
8: Have all the data you need to manage your business at your fingertips. Do not wait until...
Know where you are at. Have all the data you need to manage your business at your fingertips. Do not wait until the end of the month to check your KPI’s.
finPOWER Connect has a huge range of reports, each with their own options and parameters, that deliver the information you need to know. The reports are largely date sensitive and do not rely on a month end process to deliver timely and accurate information to you.