Lendsqr vs Loandisk: Which loan management software is right for you?

The difference between a thriving lending business and one barely keeping its head above water often lies in one important factor: the loan management software. The right loan management system can be the difference between attracting and retaining customers, optimizing loan performance, reducing credit risks, and automating tedious tasks.

Ultimately, you can free up valuable time and resources to focus on what truly matters – building strong relationships with your borrowers and expanding your business.

Now, the dilemma is which loan management software, of all the options available today, is right for you. We’ve done the heavy lifting and narrowed down your choices to two prominent platforms: Lendsqr vs Loandisk.

Let’s dive into the specific features and functionalities of each platform that overlap and differ, and how they make a significant impact on your day-to-day operations.

About Loandisk

Loandisk is a secure, easy-to-use loan management software  designed for microfinance companies. It helps you manage all aspects of your loan operations in one place – from customer loans and savings accounts to client communications.

Loandisk streamlines your workflow with features like automatic SMS/email reminders, in-depth performance reports, and comprehensive loan tracking tools. Formally launched in 2015, Loandisk is headquartered in Sydney, Australia but can be used by lenders worldwide.

About Lendsqr

Lendsqr is a comprehensive loan management ecosystem and  platform designed to streamline the lending process for individual lenders, microfinance institutions, fintech startups, and commercial banks. Lenders can easily set up their operations, manage loan applications, make smart credit decisions, disburse funds, track collections, and generate insightful reports – all within one system.

It offers a full suite of features that streamlines the entire lending process, both for lenders and borrowers, by automating processes, reducing risks, and minimizing errors. Lendsqr also offers insights into creating compelling loan products for different sections of the market, such as SMEs and personal loan borrowers.

Founded in 2018 and headquartered in the United States with additional offices in Nigerian and the United Kingdom, Lendsqr is available to lenders worldwide. Lendsqr is particularly focused on empowering lenders by providing them with the lending technology they need to scale operations, reach and engage their target audience effectively.

Lendsqr vs Loandisk: Here’s how one loan management software compares to the other.

Getting started

The first thing to consider when choosing between Lendsqr vs Loandisk is how easy it is to set up an account and get started.

Loandisk offers a 30 days free trial on all accounts, allows lenders to configure default settings including currency, date format and company name, and then lenders can start using the account to add borrowers and loans. There is no set up fee but customization requests are on a paid basis. After 30 days, the price starts at $49/month for a startup account.

Lendsqr has a similar model with paid customization except the free account does not have an expiry date. Instead, you can sign up, get a free web app in 5 minutes, and issue your first loan in minutes.

Managing your loan products effectively

Both Loandisk and Lendsqr allow you to create loan products, configure loan fees, manage investors/savers, generate loan agreements and offer letters, add guarantors and manage your team access.

Similarly, lenders can have unlimited borrowers/clients and repayments on both platforms. This shared baseline means users can handle the essential process of loan origination and servicing on either software.

But Loandisk has a limit on the number of loans, users, and savings products a lender can manage, determined by a monthly plan. The Startup plan which costs $49 per month only permits 1 user, 2000 loans, and 1000 savings accounts, along with the general features available across all plans. To enjoy an unlimited version of this would cost $298/month on the Enterprise plan.

Lendsqr, on the other hand, offers no limits on loans, savings accounts, and users.

Loandisk also has a calendar view with financial events that helps lenders visualize loan disbursements, payments, and other vital financial events.

On the other hand, instead of a calendar, lenders can keep track of their financial events with the comprehensive dashboard Lendsqr provides.

Channels

The core of Loandisk is accessed through a web-based dashboard. Lenders can log in securely to create loans, track repayments, manage customer information, generate reports, and perform most of their essential loan management activities

On the other hand, Lendsqr supports web application and mobile app channels. As a cherry on top, Lendsqr offers lenders customization and development services for both channels.

Lendsqr offers a full-service and highly scalable banking-as-a-service platform which means even a small time lender can get channel technologies and experience that rivals what large banks offer their customers.

If you are a rapidly growing lender targeting the retail market, you can get our mobile apps, which come in 3 variations. 

• Progressive Web App (PWA); a cheaper alternative for Microfinance Banks (MFBs). It can be delivered in 1 week. 
• White label; fully skinnable with colors, text and branding,
• Customisable mobile app

Lendsqr provides USSD functionality to reach underserved markets. Its web SDK feature enables lenders to integrate extra services such as “Buy Now, Pay Later” (B NPL) or embed loan services directly onto their websites. Moreover, the loan invitation feature allows lenders to upload prospects and send SMS and emails to customers.

Manage risks and make smarter lending decisions

Accurate and organized loan data is the foundation of any risk assessment.

Loandisk tracks repayment history, outstanding balances, and loan terms. Lenders can spot patterns of delinquency and adjust lending parameters accordingly. Since there’s no automatic way to verify borrower identities, Loandisk allows for manually storing borrower information beyond basic contact details. Lenders can input factors they deem relevant (income source, employment history, etc.) when collected through other means. This data could be used for rudimentary risk profiling.

In addition, Loandisk supports collateral management which provides a partial safety net against default and its reporting features could help visualize trends in loan performance, potentially highlighting riskier segments of a portfolio.

On the other hand, Lendsqr built Oraculi, a sophisticated loan decision engine designed to help lenders make more informed and data-driven lending choices. Oraculi isn’t a single tool, but rather a framework of interconnected modules that lenders can customize based on their needs. Some of these modules include:

Karma

Checks against databases of known defaulters and fraudulent actors to protect lenders.

Ecosystem

Taps into Lendsqr’s data network, allowing lenders to see a borrower’s activity with other lenders within the system.

Whitelist

This module allows a Lendsqr lender to create a specific loan product for a user or a group of users using either the user(s)’s BVN, phone number or email.

Statement

This provides information such as income, expenses, assets, debts, and a history of past payments and balances so lenders can determine if a borrower has a stable source of income and if they have sufficient resources to cover repayments.

Loci

Enables lenders to set custom rules based on real-time borrower data and transaction behavior.

Periculum

Uses advanced machine learning algorithms (classification, random forest, neural networks) to analyze transactions for potential fraud.

Credit bureau integrations

Access to traditional credit reports from credit bureaus.

Risk scoring

Oraculi can calculate customized credit scores based on the data gathered through its various modules. This score summarizes a borrower’s risk profile for the lender.

Loan recovery and payment processing

Loandisk allows lenders to manually input and record loan repayments made through external channels. This involves noting the amount repaid, date of repayment, method of repayment (cash, bank transfer, mobile money etc.). With features like “Set Collector”, “Set Collection Method”, and “Custom Fields”, lenders can track how repayments are received and tailor repayment workloads.

Lendsqr holds a significant advantage with payments integration. It supports card payments, which can be convenient for borrowers who prefer the ease and speed of using a debit or credit card.

Additionally, Lendsqr allows virtual account payments, which can simplify loan repayment by allowing borrowers to transfer funds directly from their bank accounts.

Payment links can also be generated and shared with borrowers, providing them with a simple and secure way to submit payments online.

Finally, Lendsqr offers direct debit functionality, allowing automated withdrawals from borrowers’ accounts on a scheduled basis. This can greatly reduce the risk of late payments and improve your cash flow potential.

Communication and customer support

On Loandisk, the bulk of the automated emails and SMS centers around key events in the loan lifecycle including payment reminders, loan updates, repayment confirmations, loan statements etc. 

Thereby reducing manual communication efforts for the lender. It also allows push notifications for borrowers, loan, e-signatures via the Loandisk API.

Lendsqr supports the same and more ways to reach borrowers, like live in app chats (if they have one), push notifications via mobile and web channels, and API integrations with other messaging channels including Freshchat, Infobip, Route Mobile, Mailchimp, SendGrid, etc.

With more options, you can choose how to communicate with borrowers in a way that works for you and your customers.

Accounting

Whereas Lendsqr specializes on the lending side, Loandisk includes a double-entry accounting system, a well-established method used by many businesses to keep track of their money.

This system tracks all financial transactions, including income earned, expenses paid, assets owned, and debts owed.

Lenders have access to pre-built and customizable key reports like the balance sheet, profit and loss statement, and cash flow statement, vital for decision-making.

Additionally, Loandisk has payroll management, which can be particularly helpful for smaller businesses that may not have a dedicated HR or accounting department.

Loandisk allows lenders to create custom forms and then embed them into their websites. You can create contact forms for general queries, interest forms for loan products, pre-qualification forms, or survey forms for feedback.

On the other hand, Lendsqr provides configurable loan forms deeply integrated into the loan application process for automated workflows. Borrowers could easily apply for loans directly through Lendsqr’s platform.

Branch and account management

Loandisk allows lenders to create unlimited branches within the system and set minimum and maximum loan amounts for the branches.

You can assign staff to work at specific branches. Each role comes with specific permissions, so you can control what parts of the system each employee can access.

Lendsqr offers similar branch and account management features, as well as manage and streamline your customers and their transactions with branches and teams, so your team’s staff can only see and manage customers assigned directly to them.

API integrations

You can use the Loandisk API to extract information or post your data to Loandisk. For example, every time you get a payment via a payment processing company, you can send the request to Loandisk via the API and add the payment to the loan without having to manually enter payments. It can also be used to manage borrowers, loans, repayments, savings, savings transactions, e-signatures, staff, files, and push notifications.

Lendsqr offers a developer-friendly platform called Adjutor. This platform includes useful APIs like the account verification API, which checks the authenticity of customer account details. Also, there are decisioning APIs such as Karma, Ecosystem data, and Risk Assessment Criteria (RAC) API, allowing customization of risk control parameters to suit your loan business needs. 
Others include payment APIs and APIs for loan embedding. Find out how to use Lendsqr APIs to power your loan app.

Pricing structure

The final deciding factor when choosing between Lendsqr vs Loandisk for your loan business is the pricing.

Loandisk offers 4 plans catering to different business sizes  including Startup at $49/month, Business at $109/month, Company at $198/month, and Enterprise at $298/month.

Lendsqr also offers subscriptions which are  flexible and adaptable with pricing plans starting from a free account, then Starter at $40/month, Pro at $200/month, Business at $500/month, and Enterprise at $1000/month. It also offers pricing in Naira starting from N40,000 per month, which is a significant help for its large Nigerian base.

Lendsqr vs Loandisk: What’s your final answer?

To summarize, each loan management software has its strengths. Loandisk offers a 30 days free trial and $49/month starting cost, Lendsqr offers a free account and $40/month starting cost if you choose. Both can handle the essential process of loan origination and servicing. Loandisk is web based while Lendsqr offers multiple loan channels; Loandisk supports manual risk profiling while Lendsqr has an inbuilt loan decision engine. 

Loandisk supports payment via external channels and manual recording, Lendsqr integrates with payment gateways via APIs; Loandisk supports automated email, SMS, and push notifications while Lendsqr supports all three plus live in app chat. Both loan management softwares support branch and account management, with Loandisk offering a more comprehensive double entry accounting system.

The Loandisk API has multiple uses including managing borrowers, payments, loans etc. accessed upon request, while Lendsqr offers a developer friendly platform which includes account verification, payment, and decisioning APIs to manage the entire loan lifecycle.

Choosing between Lendsqr vs Loandisk for your loan business may not be an easy task, but once you prioritize your business needs and goals, you’d know when you’ve made the right choice.

If you do choose Lendsqr free loan management software and want to get started right away, simply reach out to us at [email protected] for immediate assistance.