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5 Best Loan Management Software for Small Businesses

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Are you looking for the best loan management software for your small business?

Managing loan efficiency is crucial for small businesses to maintain financial stability and effectively serve their customers. As the lending industry evolves and gets more competitive, loan management software has become vital in helping small businesses optimize their lending operations and provide a seamless borrowing experience.

With the many loan management software available, choosing the right one for your business can be overwhelming. To help you, we’ll discuss the five best loan management software available to small businesses in this article.

But first, what is loan management software, and why do lenders need it?

What is Loan Management Software?

Loan management software, or loan servicing software, is software used to manage the loan lending process. It is mainly used by banks, credit unions, and other non-banking financial institutions that give loans to people.

Loan tracking software is a valuable tool for lenders as it eliminates the tedious paperwork operations involved in loan processing. It streamlines the entire process, from loan origination to underwriting, servicing, and collection.

With loan management software, a lender can assess the creditworthiness of a potential borrower, create loan documents, evaluate the risk of lending to a potential borrower, manage the loan process, and recover due or defaulted loans.

Why Lenders Need Loan Management Software

Loan management software solutions streamline and automate the loan process, making it easy for small businesses in lending to manage loans effectively, reducing costs, and ultimately increasing their profit margins.

Small businesses use the loan management system to automate and manage their application process. It helps them collect and verify applicants’ information and perform initial eligibility assessments. Working with a document scanning company makes it easier to scan and transmit the applicant’s data electronically in the shortest possible time.

The best online loan management software enables lenders to facilitate loan origination, including credit analysis, risk assessment, and underwriting. Once a loan is approved, lenders can use loan servicing software to track repayment schedules, generate payment reminders, calculate interest and fees, and handle late payments or defaults.

There is much more that a lending software system can do for your lending business. However, there are many online loan management software providers out there, and knowing the one that will meet your unique needs is ideal for getting the best experience out of the software.

5 Best Loan Management Software for Small Businesses

Here are five of the best loan tracking software programs small businesses can use to streamline their processes and provide excellent loan services to their customers:

1. Encompass by ICE Mortgage Technology

Encompass is an all-in-one mortgage solution for lenders by the multiple award-winning ICE Mortgage Technology company. It offers lenders many features to streamline the lending process, from loan origination to loan default management. The software contains end-to-end automation and workflow management capabilities, making it ideal for small and large lending institutions.

Some outstanding features of Encompass are the customization and integration services it offers, plus its great user interface. Lenders can adapt the software to their unique needs and integrate it with third-party services like credit bureaus, compliance tools, and document management software.

Encompass is used by renowned mortgage companies like Lennar Mortgage, Mr. Cooper, Mann Mortgage, FirstHome Mortgage, etc. Encompass is one of the industry’s most popular mortgage solutions.

2. LoanPro

LoanPro is an API-based loan management software that allows lenders to build and manage highly-configurable consumer and business loan programs, from installment to line of credit, on one platform. It is built to handle loan management, servicing, collections, payments, and even customer relationship management.

LoanPro configuration makes it possible to service almost any lending type, such as personal loans, auto loans, point of sale, crypto, mortgages, student loans, line of credit, small-dollar, etc.

With over 990 unique lending models built on the LoanPro software and over $1B monthly loan repayment volume recorded, LoanPro is a proven solution for businesses intentional about their success. This is evident in the type of clients and partners LoanPro has, with companies like Snap Finance, Medallion Bank, Best Egg, Fundbox, etc., trusting it for their lending needs.

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3. Turnkey Lender

Lenders who need a flexible, intelligent, and powerful loan servicing solution tailored to their needs turn to Turnkey Lender. Turnkey Lender is an all-in-one that allows businesses to offer various lending services, from commercial lending to peer-to-peer lending, leasing, payday or microfinance loan, etc.

The key features of Turnkey Lender are loan origination, underwriting, servicing, and default collection. It also gives lenders data-driven insights into borrower behavior and creditworthiness, enabling them to make lending decisions.  

Turnkey Lender guarantees a fast and smooth onboarding process no matter how complex a business model is. In fact, within days, lenders can have their Turnkey Lender software fully integrated and ready for use. One of Turnkey Lender’s most fascinating features is its user interface. It has a low learning curve for staff and borrowers.

Turnkey Lender provides services to many top lending platforms, such as Cashdirect, H&R Block, National Iron Bank, BigPay, Cebuana Bank, etc., proving its place as one of the best loan management software for small and large businesses.

4. Margill

Margill is one of the best loan management systems available to small businesses and for obvious reasons. It features one of the industry’s most sophisticated mathematics and a customizable interface, enabling lenders to make profitable transactions.

Margill offers comprehensive lending solutions to businesses, from loan origination to underwriting, payment and amortization schedules, debt collection, etc. It also has features like web interaction, escrow services, user-defined customization, licensing, data reporting, etc., making it the lenders’ favorite.

The software promises to reduce costly calculation errors, risks, and bad debts, accounting reporting time, increase your revenue, and save your staff valuable time by streamlining their processes. And the amazing thing is it does this to businesses of all sizes, small, medium, and large.

Some of Margill’s notable clients are Deloitte, Toyota, LaSalle, Seguros America, and even the government of Saskatchewan.

5. Mortgage Automator

Mortgage Automator started as a document generation tool in 2013 but has become one of the best loan servicing software options available to small businesses. It offers various loan management solutions, from origination to underwriting, loan servicing, accrued rate mortgage calculations, and fund services.

Mortgage Automator is multiple award-winning software with impressive recognitions, such as the 2022 winner of the Mortgage Awards of Excellence, the 2022 winner of the Service Provider of the Year, and the winner of the AAPL 2021 Excellence Awards.

The partnerships and integrations with top platforms like the American Association of Private Lenders, Geraci Law Firm, ZNPLA, CoreLogic, LHR&G, etc., make it a top choice for small businesses looking for excellent lending solutions.

What is the Difference Between a Loan Management Software (LMS) and a Loan Origination System (LOS)?

A Loan Management System is an online platform that assists lenders in automating and streamlining entire loan life cycle including loan servicing, reporting, customer care, syndication and customer monitoring. A loan origination system (“LOS”) is the technology that helps financial institutions generate loan documentation in a way that complies with regulatory and internal requirements. Banks and credit unions usually install loan origination software on their local servers or access it through a cloud-based platform.

Conclusion

Loan management software has made lending seamless and profitable for many small businesses. Apart from automating the many tedious manual processes involved in lending, it has also made the process more efficient by ensuring accurate loan rates, default fees, and duration calculations. Whether you have 25 or 25,000 clients in your lending business, one of these loan management solutions will help you. The best digital financing software for small businesses depends on your concerns.

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Godwin Uchenna is a content writer, copywriter and contributor at EntrepreneurBusinessBlog.com. You can connect with him on Facebook for your content writing services - https://www.facebook.com/azuama

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