Getting started with the Loan Management module in ChecKmate

Loan Management helps you run a lending business. You keep a file on each borrower, create loans with a full repayment schedule, record payments as they come in and see who is behind.

It is built for money lenders, credit unions, microfinance shops and any business that lends cash and collects it back in installments.

Before you start

• On your Dashboard, open the Property & Services section and tap Loan Management.
• Loan Management is part of the Enterprise plan. If the tile looks faded with a lock, your plan needs an upgrade first.
• To keep the Property & Services section open on your Dashboard, go to Settings > Operations and switch on Always Expand Property & Services.

The module has six tabs: Dashboard, Borrowers, Loans, Collections, Collateral and Reports.

Step 1: Add a borrower

1. Open the Borrowers tab and tap Add Borrower.
2. Enter the Full Name. This is the only required field.
3. Add the Phone, Email, ID Number, Address, Employment and Income.
4. Choose a Risk Level: Low, Medium or High.
5. Under Guarantor Information, add the guarantor's name, phone, ID and Relationship if there is one.
6. Tap Add Borrower.

Always add a phone number. You need it to send payment reminders by WhatsApp.

To let a borrower check their balance and schedule online, tap Copy portal link in the Portal column and send them the link.

Step 2: Create the loan

1. Open the Loans tab and tap New Loan.
2. Pick the Borrower.
3. Enter the Principal Amount, the Interest Rate (%) and the Term (periods), which is the number of payments.
4. Choose the Interest Type: Flat Rate or Reducing Balance.
5. Choose the Payment Frequency: Daily, Weekly, Biweekly or Monthly.
6. Add a Processing Fee if you charge one.
7. Set your late fee. Late Fee Type can be a Flat Fee or a % Per Day, and Late Fee Value is the amount or percentage.
8. Check the Loan Summary. It shows the Total Payable, the Installment Amount and the Total Interest.
9. Tap Create Loan.

ChecKmate gives the loan a number, such as LN-000001, and builds the repayment schedule for you. With Flat Rate, the rate you enter is charged once on the whole loan, not every month. Check the summary before you save.

Step 3: Approve and pay out the loan

A new loan starts as Pending. In the Actions column on the Loans tab:

1. Tap the tick to Approve the loan. Its status changes to Approved. To turn it down instead, choose Reject Loan, give a reason and tap Confirm Reject Loan.
2. Tap the cash icon to Disburse it. Enter the Disbursement Date, the Method (Cash, Bank Transfer, Mobile Money or Cheque) and a Reference Number if you have one.
3. Tap Confirm Disbursement. The loan is now Active, and its due dates now count from the Disbursement Date.

Tap the eye icon to View Schedule. The Repayment Schedule lists every installment with its due date, principal, interest, amount paid, penalty and status. Tap the document icon for the Loan Agreement, which you can Print or Download PDF for the borrower to sign.

Step 4: Record repayments

1. Open the Collections tab and tap Record Payment.
2. Under Select Loan, pick the loan. The list shows each loan's balance.
3. Under Select Installment, pick the installment being paid. ChecKmate fills in the amount, plus any late fee owed.
4. Check the Amount, pick the Payment Method and add a Reference if needed.
5. Tap Record Payment.

The installment is marked paid, or partial if the borrower paid less. The loan balance goes down. When the balance reaches zero, the loan is marked Completed.

Collecting from many borrowers at once? Tap Bulk Pay, tick the installments being paid, choose the method and tap Record.

Every payment shows under Payment History. Tap the printer icon to print a receipt for the borrower.

Step 5: Follow up on late payments

The Due & Overdue list on the Collections tab shows every installment due today or earlier. You see the borrower, phone, amount, penalty and Days Late. Any loan with a late installment shows as Overdue on the Loans tab.

• Tap Remind to send that borrower a WhatsApp reminder.
• Tap Remind All to remind everyone on the list who has a phone number.

ChecKmate also sends daily WhatsApp reminders on its own, three days before an installment is due and again once it is late.

For a loan that is Active, tap the three dots in Actions for more options:

• Guarantors: add guarantors with their Liability (%), and mark one as called or released.
• Restructure: choose Extend Term, Adjust Interest Rate, Reschedule Payments or Full Restructure, give a reason and check the New Terms Preview. Paid installments are kept and the unpaid ones are replaced with a new schedule.
• Mark Defaulted or Write Off: both ask for a reason before they save.

Step 6: Record collateral

1. Open the Collateral tab and tap Add Collateral.
2. Pick the Loan and enter the Type, for example Vehicle or Equipment.
3. Add the Description, Serial Number, Estimated Value and Storage Location.
4. Tap Register Collateral. The item shows as held.

When the loan is paid off, tap Release. If you have to take the item, tap Seize.

Step 7: Watch your portfolio

The Dashboard tab shows Active Loans, Overdue Loans, Disbursed This Month, Collected Today, Upcoming Payments (7d), Portfolio Balance and more.

The Reports tab gives you your Collection Rate, PAR > 30 Days (money at risk), Default Rate, Total Disbursed, Total Collected and Interest Earned. Charts show Disbursements vs Collections, Arrears Aging and a Loan Status Breakdown.

Tips

• Enter the real Disbursement Date when you pay out. The due dates are counted from that day.
• Always pick the installment when you record a payment. That way the schedule and late fees stay correct.
• Check Due & Overdue every morning before you start calling.
• Print the Loan Agreement and get it signed before you disburse.

Related

• Receivables & Income: its Loans Given tab is a separate list for money you lend outside this module. Loans made here do not appear there.
• Customers & Invoicing: for customers who buy on credit rather than borrow cash.
• Reports: your wider business reports.