What is the best accounting system for unsecured consumer loans?

My client is a firm that provides consumer loans on behalf of retailers and is implementing a new accounting system to track the loans. Primarily, they need to account for:

Loan origination
Interest accrual
Accrual reversal
Interest adjustment
Late payment fees
Payment
Charge off
Promotional rates

The loans are very similar to unsecured credit card lines.

Volumes are quite high, but the staff capabilities are moderate to low and I need the simplest option as possible. Is there an accounting system that is specifically tailored to managing this? Would I be better off with a generic general ledger? Any advice or tips welcome!

Answers

Ben Pieters Director • October 11, 2012

Hi, a typical accounting system cannot handle the complexities relating to interest calculations, early payments, fees, etc. You need a specialist solution which you can rather integrate to the GL, but forget about using your AR ledger for this. My company designed and developed such a system in 1999 and when I sold the business in 2009 we had more than 100 clients. If you are interested I can point you to the current owners for a brochure & demo..

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What is the best accounting system for unsecured consumer loans?

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