The call for a management application for (private) loans is always expanding. Outdated systems can no longer satisfy the current demand, as loan constructions have become increasingly complicated. Beside the simple fixed and annuity loans, an increasing number of roll-over loans and derivatives are being closed. Furthermore, the valuation of such loans becomes more important as well. Not just for internal risk management, but also related to a required transparency in external reporting.
The ORTEC Loans Module (OLM) is an internet application that ORTEC offers on an independent basis (hosting). It allows the user to manage, simulate and value (private) loans. The application may be used for other illiquid assets as well, for instance with mortgages.
All the user really needs to start working with OLM is reliable internet access, and it makes the purchase of expensive hardware no longer necessary. The flexible calculating brain ensures that not every loan construction that is added to the model requires a separate functionality. In the current design, the so-called Event method, it is possible to simulate the cash flow development of all types of loans. This method has already proven its worth with more than hundred corporations and municipalities.
The application also contains extensive reporting abilities, from easy free fall schemes to comprehensive valuation and graphical reports. The Loans Module allows the user to employ multiple interest scenarios. Of course, the application also generates the accompanying accounting entries of the loans and the invoices for bookkeeping, which makes it easy to connect with the payable and receivable accounts.
Finally, the module is fully integrated with the liquidities prognosis module (LPM) offered by the BNG (Bank Dutch Municipalities) and developed by ORTEC. With both modules you possess an integral treasury system that will always display the management and valuation of your loans and your liquidity position in a direct and clear way.