TurnKey Lender in the Loan Management Process

Owned by TurnKey Lender
Last updated: Jun 15, 2024
4 min read

While the exact loan management process is highly adaptable, some main process stages can be automated or semi-automated by TurnKey Lender.
The following articles will describe the exact setting and a step-by-step guide for tailoring and adjusting each step in the Turn Key Lender, while this is just an overview and a convenient reference list

The Lender gets ready to work (sets up the system)

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Whether it is a big bank, a peer-to-peer credit unit, or a loan application point at the vendor’s store, there is a lot of work to be done before the first client can come. With TurnKey Lender you can set up your digital office and define: your company details and brand style, your users and partners, calendar and available products, details and documents required from the customers, rules used to assess the customer, etc.

(see Lender Sets-Up the SystemUNDEFINED )

 

 

Potential Customer comes to the Lender

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First of all, the potential Customer needs to apply for the Loan. This may happen in one of the following ways:

  • Customer requests funds from a Lender: A Potential Customer approaches the Lender’s office, calls, or leaves an application on the Lender’s website.

  • Customer requests services or goods from a Vendor: A Potential Customer wants to purchase some goods or services from the Vendor and asks the Lender to provide the funds to pay for it as a Loan.

Initial Customer details are collected

When the application form is filled it, it contains not only information about the Customer’s requirements but also information about them and (for SME) about the business that they represent.

Turnkey Lender allows you to:

  • Define what information must or can be collected to register the Customer

  • Define what information must or can be provided to register a Loan request

  • Define what Loan details must or can be requested at the origination stage

  • Define if any additional checks must or can be run at the original stage

Collateral details are collected

If necessary, you can also input information about the collateral for the loan to TurnKey Lender, assess the collateral value, and check if the amount is enough for the loan application.
See https://turnkey-lender.atlassian.net/wiki/pages/createpage.action?spaceKey=TLKB&title=Lender%20Collects%20and%20Maintains%20Information%20about%20the%20Collateral&linkCreation=true&fromPageId=3751772161 section for more details.

Lender checks available information of the Customer

Fortunately, with TurnKey Lender, you don’t have to pass the collected information between rooms and offices or arrange piles of documents in the director’s cabinet.

TurnKey will automatically process all the information collected during the application stage, match it to decision rules defined for your company, and aggregate it in a convenient risk assessment report.

The lender is making a decision

At this point, the Lender may go directly to the decision or extend the flow, for example:

  • Request additional checks

  • Request additional information (send for reprocessing)

  • Change the loan conditions (e.g. following a conversation with the customer).

  • Suggest the Customer a different offer (usually, if the Loan under required conditions cannot be provided to this customer) or Approve the existing application.

Agreement is reached

The Customer selects the best offer (if applicable) and signs the agreement.

To ensure consistency, you can incorporate the agreement into the Loan Application processing flow.

It can be added to the system externally, but it can also be automatically generated by TurnKey Lender using your template and details of a particular Customer and Loan. Moreover, if your account is integrated with a document signing service, such an agreement will be automatically sent to the customer for signing.

Funds a disbursed and Loan is serviced

When the loan has been approved, it is time to start servicing the loan.

If the Credit Product foresees any down payments, the funds cannot be disbursed until those have been made. The disbursement itself can be made beyond TurnKey Lender and registered in the system. However, if your account is integrated with a payment service provider, the funds can be disbursed to the Customer’s or Vendor’s account automatically.

The same is true for payments.

TurnKey Lender supports every necessary tool for the management of a happy flow (when all the funds are collected in time), as well as for the management of bad debt, automatic application of late fees, etc.