VeendHQ Vs. Lendsqr: Which loan management software is right for you?

The difference between a flourishing lender and one that’s struggling to stay afloat is often evident in one critical factor: the lender’s technology or, in this case, the lender’s loan management software (LMS). 

The right loan management software can mean the difference between keeping customers happy, managing loans effectively, and saving time on manual tasks. Ultimately, it’s about freeing up a lender’s time to build relationships with borrowers and grow their loan business.

The options can be overwhelming when choosing the best loan management software for your lending business. Two of the top players in the field are VeendHQ and Lendsqr, each boasting excellent features and benefits. But which one truly stands out? Today, we’ll compare VeendHQ and Lendsqr, exploring their capabilities and potential drawbacks. Whether you’re looking to enhance your current system or seeking a new solution, we will provide valuable insights to guide your decision.

About VeendHQ

VeendHQ is a loan management software provider created to democratize ‘credit right’ in Nigeria and Africa by making credit accessible to Africans through the empowerment of financial institutions with the infrastructure and ecosystems needed to manage all aspects of their loan operations, from origination to collection.

VeendHQ was founded in 2021 by Olufemi Olanipekun, who is the Chief Executive Officerand Ebenezer Ajayi, who is the Chief Operating Officer. The company is headquartered in Lagos, Nigeria, and is well on its way to helping individuals and businesses access finance on demand.

In November 2023, VeendHQ got into Techstars Accelerator program, with an additional $120k investment added to their initial $390k pre-seed raised.

About Lendsqr

Lendsqr is an easy-to-use cloud-based loan management software that simplifies the lending process for individual lenders, microfinance institutions, fintech startups, and commercial banks. It allows lenders to set up their operations, handle loan applications, make informed credit decisions, disburse funds, track collections, and generate detailed reports – all in one place.

With features automating the lending process, Lendsqr helps reduce risks and minimize errors. It also provides valuable insights for creating attractive loan products for various market segments, such as small businesses and personal loan borrowers.

Founded in 2018 by Adedeji Olowe and serving customers in multiple countries, Lendsqr serves lenders globally by empowering them with the technology they need to grow their operations and effectively engage their target audience.

Getting started 101

When considering any loan management software, the first step should be to see how simple and fast the setup process is. 

To get started with VeendHQ as a lending organization or business, schedule a consultation with their team. After the consultation, you’ll be provided a referral code to sign up.

With Lendsqr, you can start your lending operations without needing consultations. Sign up and approve your first loan within minutes — probably the fastest in the market. We fully agree with this claim.

Reach the right audience using the right channels

Channels play a vital role in loan management. They can significantly impact a lender’s business accessibility, either enhancing or hindering it.

VeendHQ provides their lenders with multiple channels to manage loan origination:

• Weblink origination channel
• USSD origination channel
• POS origination channel

On the other hand, Lendsqr supports web applications and mobile app channels. To top it all off, Lendsqr offers customization and development services for these channels, providing lenders with tailored solutions.

Lendsqr offers a full-service and highly scalable banking-as-a-service platform, which means even a small lender can access channel technologies and an experience comparable to those offered by large banks.

For rapidly growing lenders targeting the retail market, Lendsqr provides three variations of mobile apps: Progressive Web App (PWA), a cost-effective option for Microfinance Banks (MFBs) with a delivery time of one week; White label, which allows complete customization with colors, text, and branding; and Customizable 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” (BNPL) 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.

Take control of your loan products and financial portfolio

VeendHQ and Lendsqr allow lenders to create loan products, customize loan fees, generate loan agreements and offer letters, include guarantors, and manage team access. This includes the flexibility to edit, activate, or deactivate specific loan products, ensuring that loan offerings are fine-tuned to suit the lender’s target market. 

However, Lendsqr takes the extra leap by providing savings, investments and bill payment services, doubling down on the claim that we offer a full-service and highly scalable banking-as-a-service platform.

Manage risks and make smarter lending decisions

Data is the key to a proper risk assessment, enabling a lender to make smarter lending decisions. So, it is necessary that any lender shopping for loan management software critically considers the decisioning capabilities of said LMS. 

VeendHQ recognizes the common challenge faced by lenders in manually approving and disbursing loans, which often leads to delays. To address this issue, they offer a credit decision engine that allows lenders to evaluate borrower’s creditworthiness and identify delinquency patterns efficiently. Through VeendHQ’s loan origination solution, Originate AI, lenders can leverage reliable data sources for automated credit decisions. It has been reported that lenders using VeendHQ have experienced default rates ranging from 0.8% to 5%. 

On the other hand, Lendsqr developed Oraculi, an advanced loan decision engine aimed at assisting lenders in making better-informed and data-driven lending decisions. Oraculi comprises a collection of interconnected modules that lenders can tailor to their specific requirements. Some of these modules include:

• Karma conducts checks against databases of known defaulters and fraudulent actors to safeguard 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 whether a borrower has a stable source of income and 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 provide 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

While both platforms handle payment collection, they approach it with different platforms.

VeendHQ allows payment collection via several means: wallets, bank transfers, mobile money, and automated collection through direct debit mandate. It is integrated with payment platforms like Remita, Providus Bank, Flutterwave, Okra, ITEX, etc. 

Lendsqr holds a significant advantage with payment 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, giving them a simple and secure way to repay loans. Direct debit functionality is also made available to allow authorized and automated withdrawals from borrowers’ accounts on a scheduled basis. 

Some of Lendsqr’s payment provider integrations include Paystack, Remita, Monnify, SeerBit and NIBSS. Lendsqr lenders can also utilize international payment channels like Stripe, Helcim, and GoCardless.

Communication and customer support

VeendHQ offers several communication channels for lenders to stay connected with their borrowers and provide strong support. These include automated emails, SMS, and push notifications. Most communications focus on key events in the loan lifecycle, such as payment reminders, loan updates, repayment confirmations, and loan statements. This automation significantly reduces the need for manual communication efforts by the lender.

Lendsqr offers the same communication channels and more, such as live in-app chats (if available), push notifications via mobile and web channels, and API integrations with various messaging services like Freshchat, Infobip, Route Mobile, Mailchimp, SendGrid, and others. With this wide range of options, a lender can select the communication methods that best suit them and their borrowers.

Branch and account management

Lendsqr, unlike VeendHQ, allows lenders to create unlimited branches within the system and set minimum and maximum loan amounts for the branches.

A lender can go further and assign staff to work at specific branches. Each role comes with specific permissions, so the lender can control what sections of the system each employee can access. This way, staff can only see and manage customers assigned directly to them.

APIs for integration

While VeendHQ boasts of its API-driven credit infrastructure and availability of robust APIs, limited public information is available about its features or configuration process.

On the contrary, 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 and VeendHQ for your loan business is the pricing. 

VeendHQ offers a transactional fee of 2% per loan Disbursed (Excluding TAX and Third-Party Fees). Like Lendsqr, the VeendHQ lending platform requires no installation or setup fees. For more information on their pricing tiers, contact their support team.

Lendsqr’s pricing model provides greater flexibility and transparency. With pricing plans like Starter at N40,000/month and Pro at N200,000/month. Lendsqr also operates on a subscription basis, offering a grace period to retain access to subscribed features until funding or downgrading to a free plan. Simply put, there’s a payment option suitable for every lender.

Lendsqr vs VeendHQ: What’s your final say?

Figuring out which software is better for your loan business, Lendsqr or VeendHQ, can be tricky. But by focusing on your specific needs and goals and taking in all of the information above, you’ll be able to make the best decision.

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.