The requirement of lending businesses to have an agile and user-friendly lending solution has moved beyond a functional need to a strategic requirement. Paper-based system or spreadsheets have become obsolete and no longer meets the rising demands. Businesses need a loan management solution to solicit key decision-making and managing operations efficiently.
Therefore, choosing a loan management system is much more than comparing features and prices. Lending businesses need to find a loan management solution that not only meets their needs also ensure their success for many coming years.
Not all loan management solutions are created equal. They come with their own advantages and limitations. We have listed eight factors that can help you choose the lending solution that marks maximum boxes on your checklist.
Short and long-term business needs
Choose a solution that caters to your business needs. Start the decision process by reviewing your short-term and long-term goals and objectives. Here are some of the questions you might consider:
- Does the solution provide the features to support your current business needs?
- Does it support the current infrastructure?
- Can it be customized to cater to your requirements?
- Will the platform be able to support your future needs?
The solution you are going to choose must keep up with the pace of changing the lending environment. It must provide diverse functionality you need today and the ability to add more features in the future. Here are some of the core functionalities you might require while choosing a loan management system:
- Automated decision-making
- Risk analysis
- Performance analysis
- Tracking and reporting
- Modular credit scoring
- Borrower’s evaluation
Adaptability is the built-in ability of the platform to adapt and adjust to variable business needs and customer requirements. The platform you are planning to use must allow configurations to the functionality without altering the architecture of the software.
A powerful and feature-packed platform that is complicated to use could be a waste to your organization. When it comes to a lending platform, it must be easy to use and operate right from the installation to handling the issues.
Cloud-based, or on premises
Cloud-based – This is suitable for small and mid-sized enterprises who don’t have a dedicated IT department to develop and manage the platform. The platform is hosted from the vendor location and fully managed by the vendor only. It is easy to deploy and less expensive to launch than the on-premises program.
On-premises – On-premise is highly suitable for large organizations with a dedicated IT team to manage the platform and ensure its security and uptime. It offers businesses with more control over the lending platform.
Smart credit scoring
Credit scoring is amongst the top functionalities of a lending platform which businesses require to evaluate their customers. It shows the creditworthiness of individuals for risk-free lending. When it comes for businesses to assess customers for loan services, customized credit scoring could be a great feature to offer for an accurate evaluation.
Pricing is, of course, a big factor when it comes to choosing a lending platform. The solution must offer high value and must justify the value of what it has to offer. It must fulfill your business needs while being within your budget.
24×7 Customer Support
The lending platform must come with a 24×7 customer support who are trained to resolve your issues related to the software. The customer service must provide various communication channels for support including – email, live chat, FAQs, voice calls, and more.
Choosing a loan management system could be tough unless you have these eight crucial factors to help you make the decision. The platform you choose should be an asset to your organization that caters to all your lending service needs and help you to cut through the competition to give your business the best opportunity to succeed.
Akeo Lending is amongst the top loan management solution for lending businesses. It offers customizable and modular programs with unique features to meet your specific business demands. Get more information about the platform here.