Microlending:

Private organizations that provide consumer loans to individuals are becoming more and more popular. They took a fairly large share of the lending market from banks due to the simplicity and efficiency of lending.

As a rule, accounting in such companies is complicated by a huge number of calculation operations of interest and penalties for each individual client. It is simply impossible to carry out such a number of operations manually. This requires a huge staff of accountants who would deal only with current urgent tasks all day long. Therefore, automation of the accounting system for micro-credit organizations is essential.

The process of work of credit companies can be divided into three large stages:

  • Scoring and questioning. This is the process of borrower evaluation. The company’s manager asks the client to fill out information about him/herself, and on its basis he/she makes a decision on issuing a loan and on the maximum amount available to that client. From the point of view of classical bookkeeping, this stage does not exist at all, because until the moment the money is issued, no operations take place. But in fact, this is the most important stage, which creates the foundation for all further accounting, and therefore it is very important to think over solutions for automating of scoring and questioning within the accounting system. For example, to automate online sales, the exchange of data between the accounting system and the site/application shall be configured. Thus, clients will be able to fill in questionnaires online, even without visiting the office of a credit organization, and if the scoring process is regulated, it is possible to "teach" the algorithm to automatically make decisions about loaning and calculate the maximum loan amount.
  • Interest accrual and loan management. This is the most time consuming stage in terms of accounting. Each accrual of interest or penalties must be calculated separately and accompanied by appropriate accounting operations. Also, when a client makes a recurring payment, it must be correctly distributed between the principal, interest and penalties. All this is a very time-consuming calculation, which can be fully automated within the accounting system, significantly relieving the accounting department.
  • Debt collection. The so-called collection of overdue debts is the thinnest and most difficult part of the work of micro-credit organizations from the point of view of automation. Based on our experience of automating accounting in such companies, we noticed that all the regulations and procedures for debt collection are very different. This is a very individual part of the work, for which it is difficult to come up with a universal software product. Therefore, for each particular project, we select and develop individual solutions adapted to the specifics of the company's work.
    • However this does not mean that automation for collection departments is not possible. For example, the exchange of data between the accounting system and software can be configured for call centers. In software with automatic dialling of numbers from the database, all information about the client who picked up the phone (name, surname, due date and amount of debt, and so on) can be automatically downloaded to the manager's screen. This is how the operator can have complete information about the interlocutor and conduct negotiations efficiently. Also, to control the work of the collection department, the saving of all conversations with the client through all communication channels can be configured.
    • Often the stage of debt collection of the company is outsourced to collection agencies. In this case, the calculation of the costs of the contractor's services and mechanisms for the automatic transmission of information about overdue loans shall be thought over.

These are far from all the possibilities that can be implemented in the automated accounting system of a micro-credit organization. 1C has solutions that can be adapted to specific tasks and business processes, and we are ready to offer the most suitable for your company, after an audit of work processes.

Get a free consultation from our specialists on what tasks your micro-credit company can solve by automating the accounting system. Just leave a request for consultation in the feedback form on our website.