finPOWER Fixed Interest Loans Module
Hire Purchase and Leasing are some of the major financing models around the world. The model is based on interest being calculated and charged upfront. A portion of the Unearned interest is earned each month or interest period. Rebates on a vareity of basis applied should a loan settle early. The finPOWER fixed interest module caters exactly for this lending model and it is designed to give businesses the POWER to Perform.
finPOWER is comprised of a base system and a number of key functional areas that offers the Finance Company the ability to record and track a wide range of types of Loans while maintaining tight credit control of their ledger. These are enhanced by a number of optional add-ons that need only be purchased if required. This allows for changing requirements and system growth that can match that of the finance company.
Full details are held for each client, “Joint” client, Trust or Company. This includes contact details, past addresses, notes and Loans involved with (both current and archived), either as the main Borrower, a Joint name or Guarantor.
The Loans - Fixed Interest module can calculate the following Loan Types:
- Hire Purchase.
- Deferred First Payment.
- Interest Free Period.
- Interest Only Loans.
- Flat Interest Rate.
- Residual / Balloon Payments.
- Three Tier Interest Rate breaks.
- Uneven Cashflows via the Instalment Schedule.
Full information is kept on every Loan giving you easy access on all enquiries. Information includes Client and Guarantors, as well as financial details, current status, payment schedule, securities, letters, transactions and notes. All information is easily accessed and clearly presented.
Each Loan has its own Payment Schedule allowing adjustments to be made to the payment stream where a client’s financial situation changes. This enables you to record payment arrangements, and from then onwards all overdue balances are based on these adjustments.
You may import Bank Statement information into finPOWER. This means that when customers pay by automatic payment you can simply import the payments and avoid the task of keying these transactions, giving you greater accuracy and control.
True Batch Entry facilities allow transaction batches to be entered, saved, added to, edited, printed and reported on. A single screen allows for the quick entry of one-off payments.
The system will compute rebates for early settlements, based either on Rule of 78, Rule of 78 less 10%, Proportional, Sum of Instalments or Actuarial formula. At the time of settlement entry, the receipt and rebate postings are automated.
The system produces Overdue Letters for early detection and actioning of arrears. Letters ranging from mild reminders through to pre-possession and repossession authorities can be generated. Agreement Forms, New Loan and Thank You letters can also be created. The system uses the power of Microsoft Word to automate letter printing.
When a Loan falls overdue you can easily calculate the penalty interest that is liable, including any “processing” fees. Once the Penalty Interest has been generated it can be edited, added to, or deleted as required, and then finally committed to the loan.
Notes can be made against Loans detailing Credit Control contacts. You can include action dates to provide a daily follow-up list for credit control staff.
There is a wide range of standard reports in the system. These include:
- Trial Balance
- Aged or Detailed Overdue report
- Unearned Interest
- Interest Earned
- Principal / Interest Breakdown
- Weighted Interest Rate Report
- Cashflow projection
- Full Transaction Audit Trails.