Loan Servicing Software: Get Rid of the Backup Bother Once and for All

Even if you're extremely careful, you never know when a computer crisis might pop up. Moneylender Professional loan servicing software helps you prepare for that emergency so you won't lose any data. You've got two ways to back-up your loan information:

·      Backup Portfolio: In the File Menu, just click on this option to save a portfolio to another computer file. Each time you perform this backup you select the location.

·      Auto-Backup Portfolio: Enable this through the Backup tab in Moneylender Settings on the File Menu. Once you set up this option, MLP automatically copies your portfolio. Select:

o   The backup schedule: Anywhere from every five minutes to every six hours

o   The location: To be fully protected, choose a different drive, such as a flash drive or external hard drive. NOTE: if you disconnect the designated drive, your auto-backup system is deactivated. To re-start the process, you'll have to set it up again.

With Moneylender Professional loan software, your information is safe from dangers both inside and outside your computer. (Check out our Security page.)

Moneylender Professional's Time Machine: Auto-Generate Payment History Tool

With Moneylender Professional 2 loan servicing software, the past isn't static. Maybe you've taken over a loan that's current, but you're missing documentation. Perhaps you have a non-standard loan, or you discover you've made some mistakes entering data. In any case, you can go back as far as necessary to adjust payments. The Auto-Generate Payment History Tool (on the Tools menu) adds as many payment records as you need.

Choose the date you want the modification to begin ("First Day for New Payments"), whether it's at the start of a loan or somewhere along the way. Then you have two choices:

·       Identify the last date for the changes. Note that this date is included in the changes.

·       Set a total number of payments that advance from the starting date.

Finally, indicate the payment amount. Again, you have choices:

·       The regular payment amount already set for the loan

·       A different amount you input

Once you have the history, you can still go back into the loan to manage individual payments, if necessary. The Auto-Generate Payment History Tool is a quick and handy way to get a complete past record. Use it as is or as a starting point. Either way, it helps you save time and maintain accurate records… two real assets in the business world.

The Real Meaning of "Amount Due"

Whether lenders keep track of loans in a notebook, in Excel, or in dedicated loan software, "Amount Due" is an important number… but maybe not for the reason you think. Amount Due is theoretical compared to the actual payment you receive from a borrower.

Of course, you hope the concept and reality always match. In real life, though, that often doesn't happen. And that's where the difference becomes important.

When asking for a payment, Amount Due is how much the lender wants from the borrower right now. From a borrower's point of view, it's the agreed-upon sum to consistently pay. Amount Due is not directly connected to principal and interest. It’s not the actual payment. That does get applied, lowering the total that's owed.

If the Amount Due and installment aren't identical, the lender needs to take whatever actions the loan agreement established. For instance, if the payment is less than Amount Due:

·      A late fee could kick at the end of the grace period.

·      After at least 30 full days past due, the lender might inform credit reporting agencies that the borrower is behind.

What if the payment is at the other end of the spectrum? The borrower has paid more than the Amount Due. Typically, the lender applies the extra towards the principal.

Full payment, underpayment, overpayment: Amount Due is the standard that determines a loan's status, but it's separate from the funds themselves. After setup, Moneylender Professional loan servicing software handles all kinds of transactions, so you don't need to ponder the difference between theory and practice when entering payments.