finPOWER Variable Loans Module

Consumer Loans are offered under a tight regulatory framework in both New Zealand and Australia. The Variable Loans module has been developed to meet the processing requirements in this environment. End Quote Image

The finPOWER Loans Module has been developed specifically to cater for the CCCFA has introduced in New Zealand, at the same time as catering for Australian clients that operate under the UCCC. Key features of the Loans module are:

Client Details

The Client file includes information regarding contact details, past addresses, notes with action dates, a photo of the client, referee and Loans and Deposits the client is associated with, either as the main lendee / lender, a joint name, a grantor or as a guarantor.

Full details are also held for any archived loans the client has been associated with.

Loan Types

The finPOWER Loans module allows for a great deal of flexibility in structuring the type of loan you offer. Default terms, fee caps, early settlement charges, loan elements and overdue letter rules are all set per loan type.

finPOWER Variable Loans, Details Sdump 2

Interest Calculations

The heart of the finPOWER Loan Module is its sophisticated interest calculation engine. Interest is calculated on the outstanding daily balance but there are a number of options that allow finPOWER to be configured to your specific requirements. These options include:

  • Interest free term
  • Interest free loan elements
  • Residual values
  • Deferred first payment
  • Variable frequency of interest charges, ie weekly, monthly etc
  • Optional annualising of interest charges
  • Interest debited only on Business days

finPOWER Variable Loans, Interest Sdump

Default Interest

When a Loan falls overdue additional default interest can be charged. This is calculated as part of the normal interest calculations and can be based on either the overdue portion of the loan or the entire loan balance.

Automatic transaction processing

The finPOWER Loans Module removes many of the mundane processing requirements of a loan ledger by combining them all into a common Automatic Transaction wizard. This wizard will, in a one step process:

  • Process overdue Transactions
  • Charge Interest and Fees that are due
  • Generate Statements

Bank Transaction Import

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.

Quick Payment Entry and Reversal for Unpaid Items

A transaction wizard allows for the quick entry of one-off payments and customised receipts can be printed during payment entry. Unpaid Items can easily be reversed from the Loan Enquiry Screen.

Credit Control

finPOWER has a wide range of credit control features that can increase the effective management of overdue accounts. These features include:

  • Overdue Letters for early detection and actioning of arrears. Letters ranging from mild reminders through to pre-possession and repossession authorities can be generated. Contract Forms, New Loan and Thank you letters can also be created.
  • A Monitor Flag can be set per loan for easy identification of problem loans.
  • The Loan Log records all credit control entries (such as letters and diary notes) so that an assessment of the history of the loan can be made at a glance.

"What if" Analysis

The Variable Loans Module provides powerful what if analysis on a loan given that the client wishes to make an additional payment or a withdrawal. The “What If” wizard details the effect on the term of the loan if the current repayments are maintained, or if the current term is maintained what effect does the withdrawal or extra payment have on the regular repayment amounts.

This is an ideal tool to quickly answer phone or counter queries from clients without actually processing the transaction.

finPOWER Loan What If, Results Sdump

Loan Adjustment Wizard

The Loan Adjustment Wizard allows you to adjust the interest rate and frequency of loan payments etc, and in doing so allows you to adjust either the loan term or regular repayment amount. This enables the loan to accurately reflect and record the changed circumstances, and the planned future repayments.

finPOWER Loan Adjustment, Repayments Sdump

Additional Withdrawals

From an existing Loan, a client can make an additional withdrawal. That withdrawal needs to be repaid within the existing structure of the loan, so the Withdrawal Transaction Wizard allows you to adjust either the term of the loan or the regular repayment amount to reflect the effect of the additional withdrawal. This is processed as part of the withdrawal transaction so the changed loan details are automatically recorded.

Loan Refinance

The Loan Refinance Wizard allows an open loan to be refinanced to a new loan. This may occur for a number of reasons including changing the type of loan a client has. The new loan information and amounts default from the old loan and a full audit trail is provided from one loan to the next.

Loan Quote

The Quote facility allows you to quickly prepare a two step quote for a client. Just select the loan type and enter the loan details, and all other the necessary calculations are made automatically. Once prepared, a custom Quote can be printed for the client, or if the client decides to proceed with the loan the new Loan can be added based on the Quote details.

Loan Write Offs

Small Debit and Credit loan Balances can be written off to help “clean up” a loan ledger. Write off’s can be undertaken on a per loan basis or automatically on a ledger wide basis.

Early Settlements

If a loan is to be fully repaid in full prior to the agreed term, accrued interest and fees can be calculated and charged. Also a set fee and a specified number of day’s additional interest can be charged.

SQL Server Database

With the development of finPOWER we have provided an interchangeable architecture that allows the system to operate with either a Microsoft Jet Database (the same database that is behind Microsoft Access) or a Microsoft SQL Server Database.