3 Things To Look For In Line Of Credit Software For Your Cash Advance Lending Business

Do you own or run a business that offers cash advances, payday loans, and other types of fast and convenient lending? Do you want to start offering lines of credit that customers can tap into for cash? That could be a very wise decision. Your customers could tap into that line of credit repeatedly, allowing you to earn recurring interest income from the same customer. However, managing a line of credit is much different than cash advances because you could have ongoing and constantly changing distributions and payments. To manage your platform, you'll need a robust line of credit software package. Here are a few things to look for as you start to compare different types of software:

Simple application and approval process. The last thing you want is your register line held up while a customer fills out a length line of credit application. Ideally, your software will only require basic information, such as name, address, and social security number. That way, your employees can quickly enter the information into the system and get an approval within minutes.

Also, look for software that integrates with online plugins. That way, you could take line of credit applications on your website and then transmit the data directly to your underwriter for processing. By making the application process as easy as possible, you'll encourage more people to sign up for the service.

Variety of payout options. You likely already know that many borrowers have their own preferences in how they receive their funds. Some may want a transfer to their checking account. Others may want a check. Still others might want cash. Look for a system that can facilitate all of these options and more. For instance, some line of credit software packages offer the ability to distribute funds in the form of a prepaid debit card. That could be an appealing option for those borrowers who don't want to carry around a large amount of cash and also don't want the funds going into their bank account.

Automated billing and payment collection. The last thing you likely want your employees doing is mailing out statements and calling to collect on payments. That's why you should look for a software system that automates these processes. The software should trigger automatic statements and bills that are mailed or emailed to customers. Also, the software should have a billing and collections partner who will handle collections calls for customers who fall behind on their payments. That will save you time and ensure that your payments continue to come in on time.

To learn more, contact a few line of credit software vendors. They may let you demo their product so you can decide whether it's the right system for you.