Tailor Made Automated Digital Working Capital Loan Origination and Management

LendFoundry Working Capital Loan Origination and Management Software takes into consideration the complex business requirements and provides a solution that appropriately balances portfolio risk and size. 

The platform is collaborative, supports multi-workflow, enables real-time decision making and is an end-to-end digital channel for lead management, customer onboarding, business verification, credit underwriting and loan portfolio management.

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Modular Working Capital Loan Software

Low-code modular architecture powers the platform to offer a high degree of reusability and ease of customization to build solutions tailor-made to suit unique business requirements. Deepen your customer relationship with the power of  personalized omnichannel contextual experiences.

Our Features

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For your Business Customer

  • Online all the way for a seamless truly digital paperless experience
  • Multi Channel application input support for easier lending
  • Borrower self service portal for transparent tracking through the application process and loan lifecycle
  • Configurable mobile and email management to automate notifications
  • Event driven Statement of Account and Loan Closure document generation
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For your Loan Origination

  • Connection with key credit risk analyzers, bureaus, watchlist, financial statement providers etc. to establish pricing and decision models with optimal loan risk 
  • Co Borrowing through multiple owners’ verification 
  • Streamlined workflow with configurable approval cycle. 
  • System driven consent capture & communication for speedy funding
  • Easily configurable loan terms
  • Setting of Credit Limit for Line of Credit/ Revolving Credit  product
  • Custom Workflows to support Credit & Risk Assessment
  • Quickly launch new loan products on same single platform for easy onboarding
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For your Loan Portfolio

  • Configurable Payment Hierarchies to align to business events
  • Variety of Amortization schedules, Actual/Actual, 30/360 for Term Loans and Line Of Credit Products
  • Supports multiple Repayment calculations - Equated Installments, Balloon, Bullet
  • Easy to configure additional discounts or fees on loans
  • Stop, skip and delay payments while maintaining yield targets
  • Multiple solutions for repayment processing including automated NACHA/ACH, Debit Card enabled funding and repayments files creation
  • Configurable mobile and email management to automate notifications
  • Event driven Statement of Account and Loan Closure document generation
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For your Business

  • Secure & Scalable Platform
  • SOC Type 1/2 certified
  • API for seamless integration with existing and future technology environment
  • Broker Portal for ecosystem partnerships and affiliate agents
  • MultiLingual capability 
  • User credential and role based access
  • Complete transaction log generation and storage for future audit purpose
  • Integrated document storage with classification and access control
  • Comprehensive Reporting and Analytics for current business requirements and support long term business vision

Frequently Asked Questions

Working capital loans are primarily short term business loans. Working Capital Loan is taken by businesses to meet the daily operational expenses. It is a very popular concept among businesses and helps the owners meet short term financial needs like covering wages, accounts payable, cash credit/overdraft, packing credit, bill discounting etc. Working capital loan software can be used to automate the entire loan life cycle and optimize the loan process.  

Working Capital Loans are driven by minimal documentation, offer lucrativeness and repayment flexibility. So as a lender the borrower details collected by the Loan Software coupled with the right set of verification enables the lender to mitigate risk and apply the best offer on the loan.

A Working Capital Loan Management Software has to support the functions of 

  • Loan Application
  • Document Submission
  • Data Enrichment
  • Document Verification
  • Qualify to generate an offer or reject application.
  • Offer Generation
  • Disbursement on acceptance of offer
  • Track repayments of the loan
  • Comprehend loan data for upsell, cross sell suggestions

The working capital formula tells us the short-term assets available after short-term liabilities have been paid off. It is a measure of a company’s short-term liquidity and is important for managing cash flow.

Working Capital = Current Assets – Current Liabilities

High Working Capital means a company has financial resources to meet all its short-term financial obligations. High working capital signals that a company is well managed and that it harbours the potential for strong growth.

Some of the best ways to increase working capital as a business are:

  • Manage expenses better to improve cash flow.
  • Incentivize receivables.
  • Establish a penalty for late payments.
  • Negotiate on vendor payment terms.
  • Reduce costly debts.
  • Take advantage of tax incentives.
  • Improve inventory management.

Working capital margin refers to the additional amount that a business must maintain over and above its regular working capital required to meet unforeseen expenses.

Working Capital margin in terms of funding, is what a lender is going to earn by providing a working capital loan to businesses.

The best working capital loan options are: 

  • Short term loans: One of the most popular of all working capital loan options, these loans give business owners access to a lump sum amount for a period of 3 months to 1.5 years. Business owners then return the principal along with the interest at the end of the term. 
  • Merchant Cash Advances: MCA provides the small business owner a lump sum of cash in advance to help support their working capital requirement. The business then pays back the sum in the form of a predetermined percentage of their daily credit and debit card sales.
  • SBA Loans: SBA loans are the U.S. Small Business Administration-backed loans that offer small businesses capital injections to the tune of $5 million that help them in solving a variety of issues.
  • Working capital LOC: Working capital Line of Credit (LOC) is a working capital funding model through which the creditor or funding partner gives the business access to a predetermined amount of funds that the business can use as and when they want.
  • Factoring: Also known as invoice financing in this option, business owners can sell unpaid invoices for a fee and get cash in exchange. The fee they pay is for the lender to cover their risk of assuming these account receivables. 

This article provides further detailed insights in Working Capital Loans

Working capital loan software can digitise the loan lifecycle completely thus increasing system efficiency leading to greater customer satisfaction.

Customisable interfaces can be configured to match the business workflow and predefined rules can validate applications. Data integration can help enrich borrower data for better decision making, reducing chances of fraud.

Pricing rules can provide customers with best possible offers helping create optimal risk environment.

Centralised document manager can help store and retrieve documents within the application window.

Analytics from the customer data can drive business to recognise profit centres and strategize accordingly.

Working Capital Loans are usually unsecured and are provided on the basis of the financial condition of a business and there is a validation of the businesses financial capability in addition to the borrower’s profile. If the loan amount is very high, some form of collateral is sometimes taken. 

The working capital loan being a collateral free loan product poses a higher risk factor for financial institutions when compared to other loans. In order to optimize, the business follows a stringent process and monitors the loan performance regularly. 

LendFoundry Working Capital Loan Origination and Management Software takes into consideration the complex business requirements and provides a solution that appropriately balances portfolio risk and size. The platform is collaborative, supports multi-workflow, enables real-time decision making and is an end-to-end digital channel for lead management, customer onboarding, business verification, credit underwriting and loan portfolio management.

On the Loan Origination side, the collateral free simplified application process with minimal documentation makes it convenient to apply for loans digitally with complete visibility to the borrower on the application status. Automated processing facilitates speedy loan origination including borrower verification, business health check, decision making and underwriting. Api driven integrations with an ecosystem of data providers ensures borrower data enrichment for lower risk exposure and better decision making. Intelligent Automation helps to reduce mandatory manual intervention to aggregate information/ results from different data sources and update them on the loan software thus reducing chances of human errors. Our microservice architecture ensures a seamless integration with your existing and future technology environment making it a one stop future proof solution. Actionable intelligence in assessing credit worthiness using multiple data sources including business listing, business financials, social reviews, fraud detection and prevention enables you to lower risks and present the best risk weighted offer. The solution is thus cost optimized with enhanced efficiency in servicing the applications.

On the Loan Management side your customers get a self-service portal offering a single window view of their loans, payments, statements and also facilitates periodic, timely communications. For your support teams, they get everything required at one place and access to dashboards to manage loan portfolios efficiently. For your business, it provides Analytics and AI tools to identify the next best upsell and cross sell opportunities.

Built using a low-code modular architecture, the platform offers a high degree of reusability and ease of customization to build solutions tailor-made to suit your unique business requirements.

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