Whether you're extending a line of credit in person, online or a mixture of both, line of credit software can help make your job easier, as well as giving you more time to focus on other aspects of your business like building your customer base or developing new services and products.
In fact, many businesses today utilize software to help leverage their existing resources in a better way, and if you're a lending business you'll need the best line of credit software you can find. Not only does it need to be easy to use so that you can get more out of it than you're putting in, but the right line of credit software for lenders will also satisfy regulatory and compliance issues that can knock you out of business if you're not paying attention.
Even if lending isn't a core function of your business, the time and money you save on your line of credit software can help you better allocate your resources elsewhere in the company, which may be able to put more money in your pocket and time on your calendar. That's much better than manual management of your lending practices and policies, and software is great at helping overcome problems with manual processes and oversight.
Primarily, however, line of credit software can help increase speed and efficiency on any and all levels, optimizing profitability and saving you more time, money and everything else. As far as your business goes, it's also a great way to invest in what you do as a company as you work to optimize overall performance.
Reduce Calculation Errors
One of the most important aspects of line of credit software for lenders is that you'll be able to reduce the computational errors that are all too easy to make if you're trying your hand at it manually. You could have the best spreadsheet or manual system in the world, but if you type something in wrong or neglect to file the right document, you could end up with a problem.
With automation, you'll be able to reduce the chances that a human error is made, protecting your lending business from the errors that can harm you. Indeed, with loan servicing software, you'll have all the tools at your disposal to make the right decision and to implement the right policies before it becomes an issue.
Reduce Your Risk and Bad Debts
Another important component of line of credit software is that it can help you reduce your risk and minimize the likelihood that you'll be taking on bad debt. There's nothing worse for a lending business if you're not able to collect money on a loan, and that'll come out of your bottom line no matter what kind of business you run. Line of credit software allows you to identify critical situations up front before they become serious issues, such as a delinquent account that has become impossible to collect.
Line of credit software also enables you to regulate your cash flow and reduce the likelihood of financial losses and costs. Better yet, because everything is in one central location, you'll be able to see with just a glance where your money is allocated and when you should expect payments. You'll also be able to set payment schedules and prevent payment delays with convenient texting and email alerts to your borrowers, as well as including automatic fees on missed or late payments, which can help incentivize borrowers to pay on time.
Reduce the Burden on Your Team
When it comes to your team, a line of credit software solution can help reduce the burden of manual tasks, such as posting partial or late payments, tracking customers and providing notices of unpaid bills, levying fees and creating or modifying payment schedules. On the support side, it can simplify much of your day-to-day work, giving your team the ability to focus on the things that really matter, not spin their wheels on time-consuming tasks.
Another benefit is that automation will allow you and your staff the ability to process many times the number of applications that you could ever hope to process otherwise. The work being done is also more accurate when leveraging the power of loan software, which can help you establish much-needed processes in accounting or for compliance reasons.
Quick and Easy Reporting
While it could take hours or even days to create a manual report for a given customer or customer profile, line of credit software allows you to monitor your loans and the collection thereof by being able to see what you need at any point. With all those loans flying around, it can be hard to get a sense for how you're doing or what your exposure level might be; but with the right software, it's easy to find the information you need when it matters most.
The software organizes and validates the figures you see, so it can be trusted more than that manual report, and most reporting is available on demand, making it easy to satisfy a curiosity or some kind of compliance need. Even customer statements and invoices are a cinch with line of credit software, which can help you replace or augment entire departments that you may have dedicated to the practice.
The best part is that your reporting can be customized with additional data in various ways, and for those number crunchers you can even grab all your data in a format that you're used to, such as Sage, QuickBooks and other formats such as XLS (Excel), CSV and text.
For more advanced statistical analysis, line of credit software can drill down by socio-economic factors such as age, gender and location for any of your borrowers. For those interested in the interest or income from your loans, you can even sort by those borrowers that make you the most money, in addition to those that may be costing you more money than you'd like.
Optimize Your Revenue
With the ability to track all outstanding loans and the risks attached to each, you'll get the opportunity to optimize your revenue in no time at all. Even unusual situations can be managed efficiently and effectively with minimal involvement from your staff, which is one of the great things that automation gives you as part of a line of credit software solution -- that can help you increase revenue while optimizing how your team works together.
Furthermore, with the power of monitoring, a line of credit software platform can reduce the time it takes to process payments, especially for follow-ups and borrowers that are unresponsive. Simply put, loan management software allows you to get a better understanding and view of your revenue in the short, medium and long term.
Improve Your Compliance
If you're in the business of lending, you know that a big component is regulatory. Not only is it mandatory, but it's also time-consuming, especially if you're gauging your compliance via a manual process. The good news is that line of credit software makes this crucial piece a piece of cake. That's good because compliance issues could mean disciplinary action or significant fines, even if you have 99 percent of it all buttoned up.
With some kind of manual process, you and your team would have to review all the data you take in for errors, which can represent a significant burden in time and resources. Even if you manage to get it all done, who's to say that the manual review caught any and all errors -- or what about the introduction of new errors? Line of credit software means that manual compliance efforts are no longer needed. That can help free up team members from the manual review of documents and regulatory issues, and it also means that any information you need can be made available in just seconds.
Improved Client Data Security
When your customers come to you, they expect that their information will be kept in a legal and safe manner. For those doing the manual thing, that will require your full attention at every stage of the lending process, from vetting to collecting payments and beyond. Things like income records and tax IDs are commonplace in your business, and it's important that you're always protecting this critical information, whether they currently have an outstanding loan or not.
Should any of this information fall into the wrong hands, you could be legally liable, and one doesn't have to look hard to see the effects of just one data breach and how it can create a PR nightmare for you and your team -- you may even face significant litigation costs and expenses.
With a manual process, you could be dealing with hundreds of documents in various places -- documents that could be lost, stolen, copied or improperly thrown away. Unless you have comprehensive data security practices in place, you probably wouldn't even know if an issue presents itself, and that can open you up to a whole host of liability concerns.
A cloud-based line of credit software solution allows you to organize and file all that paperwork away in a safe place, protected by the utmost in digital security today. Instead of needing to be at the office, your staff will be able to work from anywhere, reducing the need that they have to be tethered to a workstation on site.
To learn more about Infinity Software's line of credit software platform, schedule a demo today!