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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!


Ben Pieters
Title: Director
Company: ESPTech Consultants
(Director, ESPTech Consultants) |

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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