Loan Management for Financial Services

Gain better control of your loan portfolio for more effective use of money

Businesses face complex, multi-faceted challenges. And money management is no exception. It is important to track expenditures carefully to ensure money is being handled responsibly. At some point, most businesses will either issue or have a need for loans. Managing these loans can get complicated, especially when companies do not have the right processes in place to support their efforts. For these companies, loan management is heavily reliant on manual processes. Even when technology systems are involved, they are often outdated, lack the necessary functionality, and do not integrate with your accounting and finance (ERP) software.

The combination of manual processes and outdated technology results in slow, expensive, and error-prone processes. Staff will often circumvent these systems just to complete their assignments, which results in greater potential for security, audit, and regulatory risk. Moreover, there is no easy way to get the full picture of the state of the loan—and that can be disastrous.

Custom-developed or stand-alone solutions don't have what it takes

If your company is looking for something better, you can take one of two options: go with a dedicated stand-alone application or choose an internally developed solution. Here are some things to consider:

1. A stand-alone application might come with the specific loan management functionality you need, but they typically lack the strong foundation with the accounting functionality needed for seamless loan management (for example, A/R). Instead, they are designed to do one thing only, which means you will still have to integrate with your other business applications, which usually means more manual intervention. In addition, customizations can be difficult and expensive, that is, if they can be done at all. If your company has unique processes, it might be hard to integrate a stand-alone system into that workflow without impacting productivity. Plus, you will be responsible for the licensing and maintenance on the system over and above what you're paying for your other business systems.

2. An internally developed solution will be able to provide you with the specific loan management functionality you need using the systems you already own, but it comes with a challenge: you will be responsible for the cost and resources required to customize the product because it probably does not already have precisely what you need. This can be prohibitive because most companies do not have the capability to develop their own customized software solutions.

A platform solution that delivers

HSO’s Solution for Loan Management, built on Microsoft Dynamics 365 for Finance & Operations, addresses the critical components of loan management with the backing of a robust ERP platform. This solution provides you with the tools and functionality you need to manage the receivables aspect of your loan portfolio, including approving, disbursing, collecting on, and monitoring the availability of funds.

Other benefits include:

  • Configurability that allows you to easily create a solution that fits the way you do business, and, since it’s fully integrated into account structures, codes, tracking mechanisms, and other accounting functionality, you get a complete, fully integrated solution, tailored to your needs
  • Full integration, so you get one version of the truth, letting you see how much of your funds you have consumed and committed so you can feel confident in honoring requests
  • A fully functional system that includes AR functionality, eliminating the need for manual processes and multiple applications
  • Standardization of company revenue management processes
  • Improved accuracy of data and enterprise, federal, and recipient reporting
  • Reduced risk: organizational, data security, and audit
  • Improved staff efficiency and productivity, reduction of paper generation, and storage
  • Low, subscription-based cost, based on the needs of the entity and the number of users

Learn more about Loan Management for Financial Services

Contact us to talk to an HSO financial services expert today.

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