Credit underwriting software reduces MSME defaults by replacing static, backwards-looking credit inputs with current financial data, bank statements, Goods and Services Tax Network (GSTN) filings, and multi-bureau queries that reveal a borrower’s actual repayment capacity at the point of origination. Platforms like Finezza integrate these data sources into a single assessment workflow, applying consistent scoring […]
Why MSME Borrowers With Clean P&Ls Still Default Despite Credit Underwriting
A small manufacturer in Coimbatore, supplying auto components to two large industrial buyers, applies for a working capital loan. The Profit and Loss (P&L) statement shows consistent revenue growth over three years. The balance sheet looks stable. The promoter’s credit score is above 700. The credit manager approves the loan. Eight months later, the account […]
How Bill Discounting Workflows Create Reconciliation Problems for Lenders
A lending operations team at a mid-sized NBFC runs a bill discounting portfolio of 400 active invoices across 30 buyers. At month-end, the Loan Management System (LMS) shows 12 accounts as outstanding, but the Core Banking System (CBS) has already registered payments for four of them. Three others have partial payments sitting in the CBS […]
5 Operational Challenges Costing Microfinance Lenders at Scale
Managing 2,000 active loans leaves room for improvisation. Field officers know borrowers personally, delinquencies can be tracked on a spreadsheet, and bureau reports get compiled manually once a quarter. The informality works because the numbers are still small enough for a person to hold in their head. Once the portfolio grows to 20,000 loans, that […]
The Lending Life Cycle Events Your LMS Should Automate But Probably Doesn’t
When lenders talk about Loan Management System (LMS) automation, the conversation usually centres on origination: faster document extraction, automated credit scoring, and straight-through processing for clean applications. These are real improvements, and they have compressed disbursement timelines across the industry. But the origination phase lasts weeks. The post-disbursement life of a loan lasts for years. […]
Why BNPL Lenders Need a Different LMS Than Traditional Term Loan Providers
When a borrower takes a 36-month personal loan, the Loan Management System (LMS) tracking it has a relatively predictable job. One disbursement, a fixed Equated Monthly Instalment (EMI) schedule, a reducing balance, and a clear Days Past Due (DPD) clock if a payment slips. The system knows what to expect from day one. Buy Now […]