Affordable lending app for small lenders: how to compare the real cost

If you lend on a small scale, you want software that costs less than the time and mistakes it saves. The headline price rarely tells you what you will actually pay, so compare the whole cost.

Look past the monthly price

• Per-user fees: a cheap plan that charges for every collector or data-entry person grows quickly.
• Limits: caps on loans, customers or documents that push you into a dearer plan.
• Setup and migration charges: ask whether importing your existing loans costs extra.
• Add-ons: reminders, borrower access and reports are sometimes sold separately.
• Minimum terms: a long contract is a cost if the software does not fit.

Work out the cost per loan

Divide the yearly cost by the number of loans you manage. A plan that looks dear for ten loans can be cheap for two hundred, and the other way round.

Count the cost of not switching

Spreadsheets and notebooks are free, but a missed EMI, a lost document or a disputed balance is not. Estimate what one such mistake costs you in a year and compare it with the yearly price of the software.

Check that you can leave

A reliable lending app lets you export your data and tells you how long it keeps it after you stop. Ask before you start, not when you want to leave.

Try before you pay

Use a free trial with a handful of real loans. Check that the schedule matches your own working, that payments produce receipts, and that the team you have can use it without training.