The business of Credit and Asset Purchase Financing is a business that requires effective bookkeeping, especially when you have a larger chunk of your capital already advanced to customers as a loan with expected interest income.
An Accounting Software deployed for SMEs in this line of business will not only help management to understand the company’s financial positions, but will also help them to see and monitor their profit and/or loss position. For businesses in Nigeria; real-time customer’s account balance and bank reconciliation remain a key subject of concern that require immediate attention.
One of our clients had this challenge – upon approval of loans receivable in 3-6 months, customers start the repayment plan by making credit transfers to the bank accounts (Lender). Credit officers, who are in charge of tracking repayments do not have a direct access to the Credit Company’s bank statement, they miss such payment transaction as they aren’t aware of these payments. The customers, on their assumption that these periodic payments will be automatically recorded against their loan and interest payable, felt no need to do a follow up.
At the end of the loan tenor, the account officers sent a payment notice to the customers with the amount due. The customers upon this, requested for the statement of account and discovered the difference in the balance following the non-recognition/ non-recording of some payments. In order to trace the difference, the credit officer contacted the bank for a review of their statement and found repayment that were in the statement which were not recorded for the customers (borrower). These had been going on for a long time until we propose an application called “Bank Statement Pro.”
Our “Bank Statement Pro” didn’t just close the gap by providing the credit officer with the flexibility of importing multiple customers’ payment into QuickBooks Accounting Software, but also eliminated possible conflicts by reconciling all loan balances on the company and at the customer’s end.
When customers pay into the company’s bank account, it reflects in their weekly Statement of Account, downloaded from the bank’s mobile banking platform which is then recognized at the point of import via “Bank Statement Pro” and mapped to the respective customers’ name in QuickBooks for real-time reporting.
This is a typical example of how “Bank Statement Pro” is helping Loan/Credit companies to track their cash flow; all transactions arising from loan and interest repayment are now synced into “QuickBooks” to generate an accurate loan receivable report; customers are better informed of their actual balances when they request for their statement of account.
If you run a retail or corporate loan or credit services and would like to automate your accounting system, connect with us at info@accountingsoftware.com.ng or call 08105090001, 08084219399.