Top 10 “Must Haves” in Your Lending Analytics Report

Quickcheck Canada
July 8, 2016

The government requires that lending companies fill out a quarterly, bi-annual, and annual report. Each report includes information that will give the government insights into your business, and when combined with other reports they receive, insights into how the industry is functioning as a whole. Also, the lending analytics report is going to help a payday loan company identify any problem areas within their business and deal with them appropriately. This is why it's so important to ensure that the right information is being included in the overall report. Here are some of the main things that need to be included in the lending analytics report:

  • Loan Activity
    • How many payday loans were granted?
    • How many people were loans granted to?
    • How much were the dollar value of the loans?
    • What was the dollar value of all the loans granted in the period combined?
    • What was the total markup charged on the cost of borrowing?
    • How long was the average borrowing term?
    • How many loans defaulted?
    • How much did you receive in collections?
    • How many loans were sold to debt collectors?
    • Did you provide any discounts or incentives?
    • What amount of your revenue comes from payday loans?
  • Borrowing Patterns
    • How many loans were given to borrowers the same day they paid off their last payday loan?
    • How many individual borrowers were there with what quantity of payday loans in the reporting period?

Other Beneficial Information To Include In Your Business Reporting

  • A report from the CEO. This report is going to be the CEO's take on how things are going and what needs to be improved.
  • An auditor's report. This report is going to be a statement from an auditor on how the company is doing financially and if they are operating within the confines of the law.
  • A balance sheet. The balance sheet is going to analyze assets, liability, and the owner's equity.
  • Information about interest rates on loans below a certain dollar amount.
  • Statistics on collection rates and collection times.
  • Information on the screening processes used to determine a borrower's loan eligibility, and how it has changed from the previous year.
  • Analytics of employee performance. Employees need to be performing well and within a certain target range or the company will not be profitable overall.

Making Use of the Information

While the government is going to want to see this information for their own purposes, a smart company owner or executive is going to take advantage of these reports as well. If a business owner notices that most of their profits come from offering loans that are below $200, then they can focus on this and ensure they are making their company as profitable as possible. Also, if collection rates on bigger loans is low, then the company can increase the screening process for someone who is wanting to get a more substantial loan. There are many ways a good lending company can come up with an informative report and take advantage of the information on it. Also, there are plenty of programs that a lending company can use to help them automate these reports to be issued quickly and easily. One example of quality software that can do this is Quickcheck Canada, which is a program that can make it much easier to operate a payday loan business by managing customer data, generating automated government and employee reports, automating collections messages and streamlining business operations.

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