The borrower-lender relationship: Why and how to nurture it during this crisis?

Most companies have seen their business operations seriously affected by the COVID-19 pandemic and the various government measures taken to mitigate its impact on the population.

Companies have to contend with various issues in the short, medium and long term, such as the closure of many companies’, clients’ and suppliers’ places of business, restricted opening hours, and working from home.

Businesses need to maintain the relationship of trust they have built with their lender a business partner with whom it pays to be proactive, show transparency and uphold best practices during these difficult times.

Continue reading this text by François Renaud, Brigitte Gauthier and Frédéric Boivin Couillard of Lavery.

12,000 Reasons why to use Loan Servicing Software as opposed to Spreadsheets!

I love spreadsheets, they are absolutely amazing for doing so many things. They are hugely flexible, powerful and allow you do to just about anything (almost). However, as we all know, they are also very dangerous because of human error!

I recently implemented Margill Loan Manager with a new client who had been using spreadsheets (Excel) to manage its loans. As loans were imported we noticed that the interest calculated in Margill Loan Manager was $6000 higher for a quarter (3 months) that in was in Excel.

When we looked at the formulas used to calculate interest, we immediately found the error. Notice the top calculation 245,000 x 14.5% is interest for 1 year, then divided by 12 for 1 month and multiplied by 3 for three months (very basic calculation method):

In the second calculation in the spreadsheet, notice that instead of a multiplication sign in the formula (12*3), a comma was inserted by error (12,3), thus the almost $6000 difference in total interest for those three months!

The same error was replicated a couple of times in the same loan and in other loans since this was used as a template.

This error could have cost the lender tens of thousands of dollars before being spotted.

Had the error been done the other way around, so to the advantage of the lender, even more serious legal repercussions could have resulted had this been a consumer loan.

So, if you use spreadsheets, do be double cautious. even better, invest in a proper loan servicing solution. Simply finding this error paid many times for the user’s Margill Loan Manager.

See also:

The impact of coronavirus on borrowers and lenders

As companies worldwide continue to assess and react to the outbreak of COVID-19, the consequences of the virus are increasingly having an impact on businesses on a global scale. An interesting article to read here.

What is #1 Loan Servicing Software in the World?

Very interesting question, but is there an answer?

Being number 1, being the Top is the ultimate goal for many… The ultimate achievement… The Gold medal!

We hear this in political speeches: we are the BEST, we are the GREATEST, never in the history have we been SO GREAT…

Vying to be Number 1 is also true for loan solution providers.

I thought I would write this article since I came across, simply by surfing the web and checking out other loan tech companies’ websites, that at least three companies have the #1 lending technology. Congratulations to all of you!

# 1 is taken three times so I guess this means Margill Loan Manager is the BEST, the GREATEST #2 software solution out there?

There are many good, even great loan software out there and many not-so-good ones that say they can do just about everything… but none can really. In the end, when you are looking for loan servicing software, what’s important, is that the solution fits your own special needs and that customer support is there for you.

PS: No hard feelings #1s…

Marc Gelinas, CEO
Margill Solutions

Your Credit Score May Soon Change. Here’s Why.

Your credit score — that all-important passport within the financial world — may be about to change. And it won’t necessarily be because of anything you did or didn’t do.  Read this article by Tara Siegel Bernard 

Margill Loan Manager 5.1 soon to be released – Release Notes available

Margill Loan Manager 5.1 will be released later in January or early February. Consult the Release Notes.

Margill Loan Manager 5.0 now available!

After a two-year process, Margill Loan Manager 5.0 is now available for download! A new look, but without changing the way you work, a host of new features to make your lives even easier. See the Release Notes: https://www.margill.com/en/margill-loan-manager-release-notes.

To download go to https://www.margill.com/get

Stay tuned for our 20 minute Webinar on what’s new in 5.0 for early October. We will send our clients an email with the date, time and link… Time well invested!

 

Cuomo Signs Bill Cracking Down on Small-Business-Loan Abuses

Interesting article by Zachary R. Mider about New York Governor Andrew Cuomo who signed a bill aimed at preventing predatory lenders from using the state’s court system to seize the assets of small businesses nationwide.  Read the article here.

Wall Street Prepares for the End of a Crucial Benchmark

LIBOR (London Interbank Offered Rate) is dying, warn global regulators, and there’s nothing banks can do to stop it. Here’s an interesting article on the subject by Lannah Nguyen and Alex Harris.

Supreme Court of Canada considers litigation funding for the first time

Canada’s highest court will soon have an opportunity to clarify the law on litigation funding. Find out more by following this link.