Taking out a loan is part of life. As a lender, you help people buy houses and vehicles, start their own businesses and pay for college tuition. An increasing number of lenders have moved their businesses online, although some still have brick-and-mortar stores that allow them to talk to customers directly. Either way, people rely on your capital to accomplish their dreams—and you need their business to help you pay the bills.
Keeping track of customers, bills, missed payments, accounts and payment plans takes up hours of your time. It's a necessary part of running a business, but you could free up several hours every week by eliminating these tasks. You can't eliminate the tasks entirely, but with line of credit loan software, you can automate as many tasks as possible. This makes the lending process much easier for you and your customers.
Line of credit software is a new concept for some lenders, but it's the key to streamlining your business. Here's everything you need to know about line of credit loan software.
Is Line of Credit Software Difficult to Use?
When you use any program, it helps to have some software knowledge. However, line of credit software is ready to use with little effort on your part. You'll still have to input the information, but you won't have to fiddle with lines of code on the back end. Either way, line of credit software companies like Infinity offer support for people who need assistance during the installation process.
To start, you'll log in with your personal information. You'll see charts and graphs that give you important data at a glance. Along the top, a row of tabs takes you to different sections in the program. You can click links, view stats, complete tasks, add notes and make adjustments if necessary. If you know how to browse the internet, you can figure out how to use this software easily.
Which Part of the Loan Process Does This Software Cover?
Line of credit software can actually cover the entire loan process. If you have a brick-and-mortar store, you might prefer to meet with your customers in person and get their information before you enter it into the software. However, customers can also take out a loan directly through your website. You'll still get their personal information, so you can reach out to them if necessary, but you won't have to set up a face-to-face meeting.
Once the customer takes out the loan, you'll monitor their progress through the dashboard. The software keeps track of every aspect of the loan—how much they took out, how much they've paid back and whether they've missed any payments. Your customer also gets access to a portal where they can pay back their loan online or through a mobile phone.
Once the customer pays off their loan, that's it—the software took care of virtually everything. Your business might have different policies, but the software keeps track of the loan throughout its entire lifespan.
Can You Create Loans Within the Software?
Line of credit loan software allows you to build different loan templates, each with its own rules and settings. When you build a new loan, you can choose a credit limit, payment schedule, interest rate, late fee and ways that your customer can pay off the loan (cash, debit card, etc.). You can also set up pre-qualifications like age, state and income.
With each loan, you can choose factors that cause an automatic denial. This could include an expired ID, history of filing for bankruptcy, prohibited Social Security number or another issue. You'll also set approval requirements that your customer must pass before they qualify for a loan. Finally, you can make decisions for refinancing, late payments and loan estimators.
The software provides most of the information—all you have to do is check boxes and enter numerical data. You might have to write your own text in certain fields.
What About Loan Agreements?
Your customer needs to sign a legally binding loan agreement before either of you can proceed. Line of credit software offers pre-generated loan agreement templates. Add in your personal information, then use the premade loan agreement or make edits as necessary. If you're working with an online-only model, line of credit software allows electronic signatures. This allows your customers to sign off on their loans quickly and efficiently.
Does This Software Store Customer Information?
When you're juggling multiple programs and spreadsheets, it's easy to lose track of your customer's data. Fortunately, line of credit software keeps all this data in one place. This is what you'll see when you pull up a customer's profile:
- Name, phone number, email address and account number
- Type of loan and credit limit
- Amount of credit available
- Address, date of birth and other identifying information
- Name of bank and the bank's contact information
- Bank account number
- Income and name of employer
- Contact history
Each profile has options to call, text or email your customer right from the dashboard. You can also add comments, adjust the loan, place the customer on your watchlist and complete other tasks. If your customer has missed payments, you'll use the software to take action accordingly.
Does This Software Have Any Benefits for the Customer?
Line of credit loan software also makes the process easier on your customers. When they can take out a loan quickly, they're more likely to complete the application. Your customers apply right through the website, then fill out their personal information to see if they qualify. Depending on the criteria that you've set, they might get a rejection right away. But if they qualify, they'll proceed to the next steps.
Once they secure their loan, your customer creates a username and password so they can log in to the customer portal. From there, your customer can pay their bill, view their loan status and complete other tasks. This all blends into your existing website. If you don't have a website, Infinity will build one for you.
Can Brick-and-Mortar Stores Use This Software?
If you prefer to meet with customers face-to-face, line of credit software still has its advantages. To reduce paper waste, your customers can sign up for their loan through a tablet or computer that you have at your location. You'll also get a database for your leads, customers, current loans and other essentials.
Successful lenders often have multiple locations, sometimes in different states. With line of credit loan software, you can set up different profiles for each location. This allows you to create a different set of loan criteria for every business that you own. Note that this includes both online and in-person businesses if you've branched out into the digital world.
Do You Get Tech Support When You Use This Software?
Line of credit loan software isn't difficult to use, but it still takes work to integrate this software into your business. Fortunately, software companies like Infinity offer support along the way. This includes live chats with representatives, personalized onboarding training and tech support whenever you run into issues. You'll also get help if you've been running your business for a while and need to integrate your old data into the system.
Will This Software Increase Your Leads?
The software can't do everything for you. You'll still need to market your brand, build a customer base and earn positive reviews to maintain a successful business. However, this software could attract more customers for the following reasons:
- The software looks sleek and professional—customers are always on the lookout for loan scams.
- Customers can apply for a loan, get qualified and sign the paperwork online with an electronic signature. You'll hook more clients if the process is quick and efficient.
- The software integrates with your website, so it adds professionalism without drawing attention away from your brand.
- You can offer products you might not have offered before because they were too difficult to manage.
- Line of credit loan software comes with built-in marketing tools to help you reach more customers.
- Since customers can make payments just about anywhere, they'll enjoy an easier experience and be more likely to return.You can contact your customers through the software, so they know you're a real person, not a faceless individual who takes their money and walks off.
- Being professional and organized helps you build trust with your customers.
What Should You Do Next?
Line of credit loan software offers a wealth of features for online and in-person lenders. However, you can't make a decision without seeing how Infinity could work for your business. Get in touch with us today to schedule a free customized demo. We also have a short demo on our website that gives you a rundown of Infinity's essential features.