Loan Collections

Loan Collections helps teams manage overdue accounts through cases, activities, strategies, follow-up dates, and resolution tracking.

Navigation: Loan Accounts > Operations > Collections

Workspace Reference

Workspace	How Users Reach It	What Users Usually Do There
Collections	Loans -> Operations -> Collections	Create collection cases, assign officers, log activities, set next follow-up dates, and close resolved cases.
Loan Accounts	Loans -> Operations -> Accounts	Review borrower balance, schedule, arrears, and repayment history before collection action.
Loan Operations	Loans -> Operations -> Accounts	Process repayment, restructure, write-off, recovery, or reversal when a collection outcome requires it.
Reporting	Reporting -> Reports	Review arrears, portfolio-at-risk, follow-up, and recovery performance reports where configured.

What Collections Is For

Use Collections when a loan requires active recovery follow-up. A collection case gives the team one place to track the account, priority, assigned officer, actions taken, next follow-up, and final resolution.

Key Concepts

Concept	Meaning
Collection Case	The main follow-up record for an overdue loan account.
Collection Activity	A call, SMS, visit, legal notice, note, payment promise, or other action logged against the case.
Collection Strategy	The planned approach for recovery, including contact frequency and assigned responsibility.
Early Warning Flag	A system signal that the account needs attention, such as high days past due or repeated partial payments.

Creating A Case

1. Open Loan Accounts > Operations > Collections.
2. Click New Collection Case.
3. Select the loan account.
4. Review the account number, borrower name, product, outstanding balance, days in arrears, and account state in the lookup list.
5. Set priority and severity.
6. Choose the reason for opening the case.
7. Assign an officer if known. If the loan account already has a credit officer, the form can prefill that officer as the assigned collection agent.
8. Set the opened date if it should differ from the current business date.
9. Submit the case.

Use batch entry only when several cases are being created from the same review exercise.

Case Fields

Field	How To Use It
Loan Account	Select the borrower account that requires follow-up. Use the account number, borrower name, product, arrears days, and outstanding balance to confirm the right account.
Priority	Indicates how quickly the case should be handled. High priority cases should appear at the top of daily follow-up queues.
Severity	Indicates the seriousness of the credit issue. Severity may be high even when priority is medium, for example where legal or fraud risk exists.
Reason Code	Explains why the case was opened: past due, broken promise, skip trace, legal action, voluntary default, or other.
Assigned Agent	The officer responsible for follow-up. This may default from the loan account officer but can be changed by an authorised user.
Opened Date	The date the collection case begins. This is important for case ageing and follow-up reporting.

Case Statuses

Status	Meaning
Open	Collection activity is ongoing.
On Hold	Follow-up is paused, often because of restructure review, dispute review, or management instruction.
Closed	The case has been resolved, settled, written off, or moved to another formal process.

The Collections table can be filtered by status and priority. Use those filters during daily follow-up so officers focus on active high-risk cases instead of scanning all cases.

Logging Activities

Use Log Activity from a case row to record each contact or action.

Common activity details include:

• activity type such as phone call, SMS, email, visit, field visit, legal notice, note, or other
• contact method, such as the phone number called, email used, branch visit, or field contact route
• outcome such as promise to pay, no answer, left message, paid, partial payment, refused, dispute, or other
• next action date for the next planned follow-up
• notes for the next officer or reviewer

The activity history should explain what has been attempted and what should happen next.

Row Actions

Action	Purpose
Edit Case	Change status, priority, severity, reason, or assigned agent.
Log Activity	Add a call, visit, notice, note, or follow-up result without changing the main case details.
Close Case	Mark the case as resolved after confirmation. Closing should be used only when the recovery issue is settled or moved to another formal workflow.

Daily Collections Review

A practical daily review flow is:

1. Filter to Open cases.
2. Sort or filter by High priority.
3. Review days in arrears, arrears bucket, outstanding balance, reason, and assigned officer.
4. Log every contact attempt or field action.
5. Set the next action date after each activity.
6. Move cases to On Hold only when there is a clear reason, such as restructuring review or legal escalation.
7. Close only after repayment, approved settlement, write-off, restructuring, or formal transfer is complete.

Collection Strategies

A strategy describes how the account should be handled. It can include:

• strategy type, such as soft collection, hard collection, field visit, or legal route
• priority level
• contact frequency
• next contact date
• assigned officer

Strategies are useful where collection handling needs consistency across many accounts.

Early Warning Flags

The system can flag accounts that show collection risk. Examples include:

Flag	What It Means
High Days Past Due	The account has crossed a configured arrears threshold.
Repeated Partial Payments	The borrower keeps paying less than due.
Reduced Cashflows	Recent payments suggest weakening repayment capacity.

Treat flags as decision support. Officers should still review the account context before taking action.

Closing A Case

Close a case only when the collection reason has been resolved or formally transferred to another process.

Before closing, confirm:

• the latest action is logged
• the resolution reason is clear
• any promise-to-pay or settlement has been reviewed
• any write-off, restructuring, or legal action is handled in the correct workflow

Permissions

Access normally depends on separate permissions for viewing cases, creating cases, updating cases, logging activities, and maintaining strategies.

If a button or tab is missing, check the user's role and the active service profile.

Related Guides

• Loan Accounts
• Interest in Suspense
• Loan Operations