Accounting for consumer loans

My assignment “Accounting for consumer loans” was created to explore the possibilities of allocating consumer credit in the LLC. The reason for choosing the topic is mainly based on personal interests.

It is based on the fact that I am employed in a company that, among other things, provides loans to entrepreneurs, but would like to expand the business to consumer loans, where we face problems of how to support and facilitate the business with programming.

And how to ensure the accounting accuracy and traceability of information, provide qualified personnel and, most importantly, meet all legal standards and requirements.

The goal was to investigate how many similar companies in Slovenia are dealing with how they solved the software problem, because if they are not a bank, it is extremely difficult or impossible to get a suitable computer program that allows transparent approval and management of consumer loans.

Furthermore, I wanted to point out the problem that despite the fact that banks offer “soft” loans, more and more people are opting for a loan from a private individual because the conditions with banks are such that it is extremely difficult for an individual to comply.

For the purpose of my thesis, I also took out a loan with a company that deals with consumer loans, so I convinced myself that the process was much easier and the costs were not excessively higher than taking out a short-term consumer loan with a bank.

I researched how to link administrative work processes with accounting and facilitate business, improve transparency, increase internal control, and reduce opportunities for error. To this end, I also interviewed consumer credit providers in Slovenia.

Although there are still relatively few such providers in Slovenia, at least those that offer loans with the approval of the Ministry and within the legal framework, I still learned something about the business of companies, although all are reluctant to talk about their nature and scope of business, especially now the times are not the rosiest due to the situation in the world and there is also a lot of risk in the field of consumer credit.