Loan management systems can be used to automate the loan lifecycle. Depending on your needs, these programmes can be used in whole or in part. Customers' information and loans can be processed using loan management system software. Lenders can receive accurate reports and statements from the software, manage interest rates, and provide collection tools.
What is a loan management system?
What are the benefits of a loan management system?
Loan management systems are an essential tool in the financial world. They assist lenders in managing their loans and ensuring that payments are made on time, provide accurate statements and reports, assist in automating part or all of the loan lifecycle, assist in processing customer information, and much more. Other benefits of a loan management system include:
Loan creation. Origination is the process of taking a customer's information and creating a loan for them to finance. Lenders must streamline their loan origination process to maintain high service and high-speed standards. A loan management system can assist in these goals by providing up-to-date information about customer accounts, prompt payments, and accurate statements.
Servicing of loans. Loan management system software handles routine tasks like posting payments and capitalising interest. It also generates account status reports and flags late or over-amortised payments.
Account reconciliation and reporting. A loan management system providing detailed reports, reconciliation services, and various account analysis tools can help you reduce errors and improve overall customer satisfaction.
What does being in arrears mean?
Arrears is a financial and legal term that refers to a payment's status concerning its due date. The term is most commonly used to describe a debt or liability that has not been paid by the due date. As a result, the term arrears refers to an overdue payment. The account is in arrears if one or more payments have been missed where regular payments are contractually required, like mortgage or rent payments and utility or telephone bills.
What happens if you are in arrears?
Arrears indicate that you are behind on your payments and have missed one or more when regular monthly instalments are due. There are a few options for resolving your situation.
Debt counselling is a formal management system that can help you regain control of your finances. By contacting a debt counsellor, you can arrange to pay lower monthly instalments and interest rates over a longer period. This relieves some of the strain on your monthly budget, freeing up funds for essential living expenses.
Debt review is a tailored service that allows you to protect your assets from repossession. It is a way to get on top of your overburdened financial situation. When you are placed on debt review, your creditors will be notified, and your debt counsellor will work with you to determine an affordable repayment amount and interest rate. This ensures you can repay the debt over time, giving you more time to organise your finances. In addition, it protects your assets from repossession or your finances from garnishee orders, allowing you to go about your daily life without jeopardising your job or earning potential.
Debt consolidation is when you take out one loan to cover all your other loans. In essence, this means you can pay off multiple creditors' debts and replace them with a single large debt at a fixed interest rate.
What is a credit protection plan?
A credit protection plan will help your family if you become permanently or temporarily disabled, are diagnosed with a critical illness, terminal illness, lose your job, or die. Most financial institutions offer credit protection plans to help you manage your loans, credit card bills, and vehicle and asset financing payments if you are unable to do so due to loss of income under the above conditions.
Although credit insurance generally protects borrowers in the event of death, disability, or unemployment, there are a few exceptions. Some examples include:
If you lose your job through no fault of your own, involuntary unemployment insurance will pay a portion of your loan payments.
Disability insurance pays a portion of your loan payments if you become disabled and unable to work.
If you die, your loan balance is paid off by life insurance.
Debt protection is a voluntarily added benefit to your credit card, loan, or lines of credit. If you have debt protection, your lender will agree to forgive all or part of your debt if you cannot make your payments due to a protected life event. You may be charged a fee for this coverage, which is usually a percentage of your outstanding balance.
There are numerous advantages to debt protection, including the peace of mind that comes with knowing you and your family are protected in the event of an unexpected death, disability, or job loss.
Furthermore, debt protection can help you maintain your credit rating by preventing debt defaults. This can be useful if you ever need to borrow money for a large purchase, such as a house or a car.
What is a credit vetting check?
Credit vetting refers to the examination process that determines a person's or an organisation's creditworthiness. The process can also determine whether the credit company should extend credit to the individual in question, renewing the loan terms on request.
How does credit vetting work?
Credit vetting entails gathering as much information as possible about your potential customers. This includes credit histories, including late payments, judgments, and other relevant information to help you evaluate your prospective customer.
Why choose ACPAS?
ACPAS has developed an all-inclusive, fully automated loan management system and payment processing solution. With our loan management system, payroll administrators and credit providers can view, manage, and control their business from anywhere and anytime with our solutions. Our clients' agility and speed increase as our software facilitate the entire loan cycle, allowing them to control their risk within business-driven, adjustable parameters. We ensure that our clients achieve their objectives through our ongoing hard work and dedication to improving our offering and service.
We provide agile and robust software that encompasses the entire finance cycle of any company that offers credit, products, or services on terms. In addition, we strive to combine and automate numerous complex standalone processes so you can focus on caring for your clients and growing your business.
Contact ACPAS for details
We have in-depth knowledge of the financial services industry and unique insights into loan and credit cycles. This has informed our offering and how we pay special attention to assisting your business's success and caring for your clients the same way you would. There's no need to struggle with out-of-date loan and payment applications when you can take advantage of our specialised, all-inclusive loan management system software. Our solutions have been developed to ensure that you can view, manage, and control your business from anywhere and at any time, with notifications alerting you to any changes, complete control over what happens in your business, and the ability to process payments quickly. In addition, we take pride in prioritising a positive customer service experience for our clients. We believe that by coming to ACPAS, you will form long-lasting relationships with a team always willing to go above and beyond for you.
92 Jean Avenue, Doringkloof, Centurion
Gauteng, South Africa 0157
+27 (012) 665 0319
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