Using Source Companies


Often times lenders get customer referrals or they buy loans from other companies.  Source Companies are designed to help you keep track of the sources of your loans.  You can filter reports and the loan search by source company to help you monitor how loans from different sources perform.  Using the tools LoanPro provides, you should be able to make better decisions about how you acquire your loans and how your relationship with your source companies should be structured.

You can  set up new source companies at Settings > Loan > Source Company > Companies inside of your company account.

You can assign a source company to a loan at Loan  Settings > Settings inside the loan.

This article will go over how to use source company groups to get information necessary to your business.


One of the best ways to see how your source companies are performing is through summaries in the loan list. To view summaries for your source companies, navigate to Loans > Loan Manager inside your company account. Click the option near the top of the page to view the source company data.

This will show you number of accounts, outstanding principal balance, average principal balance, total payoff, average payoff, total amount due, average amount due, and average days past due.  This should give a good idea of how each source company is doing.


You can narrow the reports by source company.  The best way to get an idea of how a source company is doing is through the  custom query.  The custom query is located at Reports > Administration > Custom Query.

You can select any of the numbers that you believe will be helpful to add to the query.  We recommend  Net Charge Off, Remaining Principal Balance, Total Loan Amount, Amount Past Due, # of Days Past Due.

Net Charge Off – This shows the amount on each of these loans that you don’t expect to collect.  This is a good indicator of how well loans from this company have worked out.  Of course, this number will change as the loans mature, which is why we will look at some of the other numbers as well.

Remaining Principal Balance – This will show how much you’re in the loans in a given source company.  It will be good to divide this number by the total number of loans in the source company (something your spreadsheet application should be able to easily do) in order to see the average amount you’re in the loans.

Total Loan Amount – Divide the Remaining Principal Balance by the Total Loan Amount in order to calculate the percentage of your loans that still need to be paid off.  This will let you see how repayment of the loans is going.

Amount Past Due – This will show how delinquent the loans are in a given source company.  Divide this total by the number of loans to see how far the average loan is past due.

# of Days Past Due – This will show you how many days the loans in the source company are past due.  Divide the total by the number of loans to get an average days past due.


This should help you better understand your source companies and give a better way to compare one source company with another.  If you find that any source companies are doing significantly worse than the others, or if any are underperforming compared to your expectations, you may want to restructure your agreement with a particular source company.  You may consider a larger lender’s fee, or offering only full-recourse loans to that company.

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