10 Best Loan Management Software for Small Businesses in 2024

10 Best Loan Management Software for Small Businesses
10 Best Loan Management Software for Small Businesses
An increase in loan demand now leads us to the purpose of our project on loan management software.

Often, microfinance institutions attempt to increase the number of clients by having lower standards for the borrower and the loan itself. The end result could be a higher loan default rate and decreased financial sustainability.

It is up to the institution's management to effectively monitor and control the rate of growth and how this growth is affecting the portfolio. This is where the term "loan management" comes into play. For any type of loan, proper management will ensure that the loan will effectively serve its purpose.

Loan management software (LMS) is important for managing your loan business. The right software will let you manage the loans down to the most minute detail and without the possibility of human error.

5 Features to Consider in Loan Management Software

Here are 5 features to take into consideration when lenders want to buy loan management software:
  • Automation of Complex Loan Application Processes: This is the most critical function. Ideally, you need automation of complex and simple application processes. An example of a simple process is loan approval, where if the loan satisfies certain criteria, the system can automatically approve that loan.
  • Customer Management: This feature will help you manage your clients effectively and keep track of your customer history. You will need functionality such as profiles, different views of the customer (i.e., active, inactive), and a way to log communication with the customer.
  • System Configuration: Good loan management software should allow you to have the control to set up your system in a way that is intuitive and makes sense to your staff. It should also allow for minimal disruption of your current system during implementation.
  • Scalability: The loan management software must be a fully scalable solution. This is an important feature, as many loan companies may forecast significant growth potential, and it would be a waste of time to transfer to another software when the business has outgrown the original solution.
  • Customer/partner web interface: Nowadays, it's always more convenient for customers to have an online interface. Whether it be to apply for a loan or for a partner to check the status of a dealer loan, an internet interface will be more convenient and provide a simplified means of data entry.
  • Post-funding/pre-pay tracking: A good loan management system should keep track of a loan through its entire lifecycle. This will provide an accurate representation of the status of the loan and will make things such as reporting much more accurate. For example, if a loan is paid ahead of schedule and there is a pre-pay penalty, it's important that the loan tracking can reflect that and not provide inaccurate information.

10 Best Loan Management Software for Small Businesses

The 10 best loan management software (in no particular order) include the following:

1. Mortgage Automator

Mortgage Automator boasts an impressive range of loan servicing options, portfolio management, credit bureau integration, investor management, document creation, and more. The overall cost is in line with others, but implementation costs can be higher for some.

The feature list is impressive, with a clear focus on servicing functionality. It also brings some modern technology to the table, with a web-based interface and cloud computing. Mortgage Automator can handle most loan types, including mortgages, simple interest, and pre-computed loans.

This software could be a strong contender for lenders who need a large servicing system and are open to embracing modern technology. I personally really like the user-friendly GUI. The messaging, alerts, and calendar functions will certainly assist in organizing your day-to-day workload.

2. LoanPro

LoanPro is a leading technology company that provides a sophisticated and versatile loan management and servicing platform. It is the newest system on the list and was built from the ground up to utilize modern technology. 

LoanPro is revolutionizing the way loans are managed. Its commitment to regularly adding new features and developing new and better ways of managing loans allows LoanPro to become more effective over time. The platform is fully scalable, with a focus on customization and automation features.

LoanPro's vision is very broad, and over time it aims to build a comprehensive system that can cater to any lender, from a sole proprietor to a large financial institution. The system is modern and easy to use.

3. Margill Loan Manager

Margill Loan Manager has a huge number of features, almost too many to list. Main features include custom reports and calculation tables, support for all interest calculation methods, including Canadian, Australian, and adjustable rates, and a unique and very useful simulation mode.

Simulation mode allows a user to create a scenario, perhaps a new loan with a special interest rate, and compare it to an existing loan to see if it is more advantageous and if the existing loan should be refinanced. Simulation mode can also be used to forecast loan payments and expenses over a period of time. All data entered in the simulation mode can be saved and used as the basis for future action.

Margill Loan Manager is an incredibly versatile loan management software for complex loans. It is a very solid choice for organizations whose loans require a higher degree of custom reporting, an irregular payment schedule, or involve the management of bare trust accounts.

4. Nortridge Software

Nortridge Software is a loan servicing and origination software, with the servicing platform being more geared towards consumer finance and microfinance institutions. Nortridge does not cater to that many small lenders; however, they have a very strong product.

In addition to core servicing, Nortridge has online payment, document management, and investor accounting capabilities. Pricing for Nortridge is quite variable, the product is highly customizable so pricing can shift significantly depending on the client requirements.

For a small lender looking for high functionality and who is prepared to invest significant time and money into the configurability of the product, Nortridge is an excellent choice. If the intention is to migrate upmarket to become a large-scale operation, Nortridge offers functionality to support this level of business, so the software will be more future-proof than other platforms.

5. BNTouch Mortgage CRM

In the standard version of BNTouch Mortgage CRM, the only disadvantage is that there is no loan origination tool available. However, this feature is available in the pro version and also includes loan officer user licenses. Provision for this upgrade is very beneficial for businesses if they have intentions to shift from lead generation business to lending business.

The price for the pro version is $79, which is slightly higher than the standard version but still very competitive as compared to other CRMs.

BNTouch is a mid-range loan servicing software that is specially used in the mortgage industry. This software is loaded with all the necessary tools required in the mortgage business. With a starting price of $59, the standard BNTouch version provides the best solutions for small business users.

The features available in the standard version are lead management, contact management, referral partner tracking, and marketing automation. The main advantage of BNTouch is that it is very easy to use and understand. The user interface is simple and straightforward, to the point that any user can understand its functionality without much effort.

6. LendingPad

LendingPad offers an innovative customer acquisition tool that allows borrowers to submit a quick inquiry with little to no documentation, providing instant decision/certainty for users. This tool is directly linked to LendingPad's product pricing engine (PPE). 

LendingPad uses a rule engine and product eligibility tool that allows effective management of all investor and product guidelines, making the decision/certainty (DU/LP) process an efficient and reliable one. LendingPad's pricing engine rivals that of any in the industry in terms of user flexibility, speed, accuracy, and full-service professional support.

LendingPad combines the simplicity of a point-and-click user interface with the flexibility of a robust engine, allowing for instant pricing decisions from within any point of the system. LendingPad's product and pricing engine come with error-checking and simple instructions, providing protection against costly investor errors.

7. Bryt

Users of the Bryt loan management software universally concur that the software is an originating software. The software is simple to use and enables the user to go from point of sale to processing, underwriting, closing, and then investor delivery, all in one cohesive process.

The pipeline view enables the user to have a quick look at which point all the loans are at. The real-time reporting allows users to see the amount of business done in any given time. Real-time reporting can be customized by the user, and more reports can be added. The reporting comes with Crystal Reports.

The enterprise version of Bryt is an edition of Bryt that is more advanced. The enterprise version comes with a locking mechanism and variable, user-defined custom views. The software has a calculated fields and forms engine, which allows the user to create specific forms with calculations embedded.

8. Centrex

This platform may be simple, but it offers many of the same features as more complex and expensive systems. Some of the features of Centrex include loan origination, loan servicing, document management, a customer portal, CRM, and lead management. 

Web-based loan origination software is designed to meet the specific needs of automobile finance, furniture, equipment, and point-of-sale finance. The loan servicing system is designed for companies of all sizes and manages a variety of loan types from a complete range of lending institutions. This system is a simple and affordable solution.

Centrex offers loan management servicing software on a 100% web-based platform that offers cloud-based loan servicing and web access options. It gives flexibility to its users to log in from anywhere, as it does not require any software or hardware to use the system.

9. LendFusion

LendFusion is a complete and fully-integrated loan management system designed for lenders who want dependability, efficiency, and affordability. LendFusion's loan management software solution will help keep your loan process under control, allowing you to grow your business with confidence.

The loan management system is completely customizable, from loan application to loan approval process. LendFusion provides a vast variety of features for a price starting at just $59 a month. Some of these features include a loan search utility, loan aggregation, and comprehensive reporting.

LendFusion offers a free trial of our software package so that you can try before you buy. All you have to lose is inefficiency. With their great reputation, superb loan management system, and affordable price, you will not be disappointed.

10. Loansifter

Loansifter is a loan management system that helps small businesses manage their loans and track changes in the current loan status. The system allows business owners to easily find the best loan available in their current market.

Loansifter has several features designed to be simple and powerful. It has a reporting tool through which business owners can track where they are getting their loans, who is closing the loan, and what loan officers are performing the best or worst. This can be done by creating a report and exporting it to Excel.

It has a scenario pipeline tool, which allows users to manage a hypothetical loan scenario for a customer and inform them once the loan scenario becomes a real loan. The system will track all changes and provide alerts for when a loan scenario changes or fits a new loan product. This will give users the ability to obtain the most accurate loan results for their customers.

Benefits of Using Loan Management Software

Here are 6 important benefits that you will enjoy when you start using loan management software:
  1. It offers improved efficiency through streamlined processes.
  2. Users will enjoy enhanced accuracy in loan data management.
  3. Effective risk management capabilities are included.
  4. It offers an elevated customer experience with personalized interactions.
  5. The users will get valuable insights derived from comprehensive data.
  6. It offers scalability to adapt to evolving needs.

Conclusion: 10 Best Loan Management Software for Small Businesses

Loan management has been a complicated process. Choosing a loan management software could be more stressful and time-consuming than you think. It is indeed a major decision for any organization. A poor choice is bound to cost you a lot of time, money, and effort. 

While each company claims that their system is the best, it is important to compare the different available systems and find out which features are really the most beneficial.
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