Leading the Way in Revolving Credit with Looms Lending System

What is a revolving loan?

A revolving loan refers to a line of credit approved by a financial institution that allows customers to draw funds as needed, up to a specified limit. As borrowers repay the amount used, the credit becomes available again for future use. The key advantage of a revolving loan is its flexibility in spending and fund management. It is ideal for individuals and businesses that require working capital for ongoing expenses or unexpected emergencies.

Advantages of a revolving loan

1. High flexibility – You can draw funds as needed without reapplying. This allows you to respond to emergencies or short-term funding needs conveniently and promptly.
2. Reusable afterrepayment – Once you repay the borrowed amount, the credit limit resets. This means you can draw funds again without the need to reapply. This makes it an excellent option for those requiring long-term working capital.
3. Liquidity management – This type of loan is ideal for businesses with recurring expenses or unpredictable income—such as salaries, raw material costs, or monthly bills. It enables continued operations without disruptions caused by cash flow issues.
4. Interest charged only on the amount used – Interest is applied only to the amount actually drawn. In contrast, long-term loans typically charge interest on the full loan amount from the outset. This helps reduce interest costs and supports more efficient financial management.
5. No reapplication needed – With an existing credit line, you can access additional funds immediately when needed, without having to reapply or go through the approval process again. This reduces paperwork and saves time for both borrowers and lenders, making access to funds quicker and more convenient.

Challenges facing revolving loanstoday

Although a revolving loan offers many advantages, it also presents several management challenges.

• Complex approval process – Applying for a revolving loan often involves a thorough and time-consuming review. This typically includes verification of personal documents, financial statements, credit reports, and other supporting materials. The requirements may vary depending on the type of loan and the policies of each financial institution. This complexity can lead to approval delays, especially when you need urgent funds for business or emergency purposes.
• Risk of over-indebtedness – A revolving loan provides convenient access to funds as needed. However, without proper spending plans or good financial control, you may end up borrowing more than necessary. This can lead to the accumulation of long-term debt, negatively impacting credit history and future repayment ability.
• Difficult tracking payments – Some organizations still rely on manual systems to track payments, making the process cumbersome and time-consuming. Staff must gather data, verify payment records, and follow up with customers individually. This increases the workload and raises the risk of delayed debt collection.

Discover the Looms System

Looms (Loan Origination Management System) is a digital platform that offers end-to-end online loan management. It streamlines the processes of loan application, approval, and tracking—making them more convenient and accurate. Looms is especially suitable for financial institutions and businesses looking to reduce operating costs and enhance lending efficiency.

Key Functions of Looms

1. White-label borrower portal

• Apply for loans easily through a digital platform, whether via a mobile application or a web browser on a computer.
• Submit required documents by uploading files directly to the lending institution.
• Verify your identity through an e-KYC process. Track your application status independently.
• Check payment due dates and receive automatic reminders before each due date.

2. Intelligent document processing

• Leverages AI to analyze and review borrowers’ financial documents—such as bank statements and vehicle registration books—helping to accelerate the loan approval process.

3. Risk management and credit scoring

• Analyzes the borrower’s ability to repay using various data sources, including pay slips, employment certificates, bank statements, social security contribution records, and credit bureau history.
• Utilizes the borrower’s credit score to support approval decisions and help reduce the default rate.

4. Loan disbursement and repayment

• View disbursement details—such as the approved amount, disbursement date, and status—via the bank transaction list and dashboard.
• Display the full repayment schedule, including principal, interest, fees, and penalties, while tracking customer payments.
• Generate summary reports for both loan disbursement and repayments.

5. Debt collection

• Assign debt collection tasks to staff through both automated and manual methods. You can create custom task groups such as call lists and field visits.
• Configure the system to send notification messages via email, SMS, or in-app notifications.

6. Integration with other systems

• Supports API integration with the organization’s accounting and ERP systems.
• Connects seamlessly with external systems, such as credit bureaus and bank gateway systems.

How Looms tackles the pain points of revolving credit?

1. Reduced approval time – Looms leverages AI and automation systems to process loan applicant data, such as income, financial history, and spending behavior. This enables rapid risk analysis and loan approval decisions. It significantly reduces approval time and improves efficiency for both customers and financial institutions.
2. Lower risk for financial institutions – Looms enables detailed analysis of customer data to assess repayment capacity. It can also verify credit information quickly and accurately using data from credit bureaus and banks. This helps identify high-risk customers early and supports more more effective lending decisions.
3. Improved customer experience – Looms consolidates all loan processes into a single platform. Customers can apply, receive approval, and track their loan status in real time through an easy-to-use interface. This eliminates the need to send documents through multiple channels or wait for callbacks, increasing transparency and building customer confidence.
4. Reduced operational costs – Looms’ automation system reduces the workload for staff in areas such as document collection, data verification, and debt collection. With automated notifications and continuous monitoring of debtor status, financial institutions can focus more on customer service and business growth.

Conclusion

A revolving loan is a financial tool that helps businesses manage liquidity effectively. However, managing this type of loan requires advanced technology to overcome existing challenges. Looms is a platform designed to address these issues. It streamlines the lending process, reduces risks, and improves efficiency for both lenders and borrowers. By implementing Looms, financial institutions and businesses can enhance their ability to deliver revolving loan services more effectively.

Click here to download Looms leaflet

To see our demo system, please feel free to contact us at thaisales@iconext.co.th or click our Inquiry Form.

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