How ZimpleMoney is Changing the Game for Loan Servicing and Payment Collection

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A few months ago, I set out to write an in-depth blog post about the best loan servicing software options available for real estate investors.

I was writing this article for real estate investors who sell their properties with seller financing (i.e. – people who need to calculate payments, create amortization schedules and track ongoing installment payments from their borrowers).

In my search for the best solution – I found a great method for setting up a fully automated “set it and forget it” system for collecting loan payments (and it didn’t require a loan servicing company to act as the middle man).

The best solution I could find for automatic ACH withdrawals was a service called ZimpleMoney. Check them out here:

ZimpleMoney isn’t so much a “loan servicing software” as it is a “back office automation product”. It’s a great solution for real estate investors utilizing seller financing, but it’s also a great solution for ANYONE who is lending money and wants to track AND fully automate the ongoing monthly, quarterly or yearly payments (e.g. – Car Dealerships, Doctors, CPAs, Trust Companies, Moms and Dads, people making 401k loans, etc.).

The video above explains how it works.

To set up a new loan with ZimpleMoney, you can simply enter in the information from your Promissory Note (the loan amount, interest rate, duration of loan, etc.) and it will emulate whatever is in your contract.

When a loan is created, both the lender(s) and the borrower(s) will have their own ZimpleMoney account – so they can log in at any time and see this data. Not all borrowers will be interested in doing this… but it’s there if/when they want to use it.

At the time of this writing, there are several different pricing plans available:

What’s the right plan for you? It depends on whether you’re an occasional lender or someone who regularly extends loans to your customers.

If you’re someone like me (who usually has at least a handful of loans outstanding at any given time), chances are – the ZimpleMoney Plus or the ZimpleMoney Pro “Business Plans” will make the most sense. The only significant difference between the two is the monthly cost. The “Plus” plan is $20/mo. The “Pro” plan is $35/mo.

What do you get for the higher monthly cost of Pro? Besides the slightly smaller setup fee for each new loan account ($35 for each new setup with the Pro plan, instead of a $39 for each new setup with the Plus plan), a Pro account offers you the ability to be an ACH Merchant. This essentially gives you more control over the creation of each new account. Rather than sending the borrower a link to create their own account and fill in their details, they can give their details directly to you, and then YOU can create their account for them.

Besides the monthly fee for the Plus and the Pro plans, here’s a breakdown of the additional costs associated with each type of account.

– Setup Fee (required to create each new loan) – $39 for Plus / $35 for Pro (Note: This fee can be passed on to the borrower as a “closing fees”).
– Transaction Fee – minimum of $3.99 for each regular payment collected, and up to $14.99 for every successful transaction (Note: These fees can be passed on to the borrower as “Taxes & Servicing Fees”).
– Insufficient Funds or Returned Items – $15 (when someone puts a stop payment and you try to process it multiple times).
– Notice of Change (NOC) Fee – $4.50 (when the Banking System or Federal System has to modify your account).

Also keep in mind, you can use ZimpleMoney with a FREE plan called ZimpleMoney Essential. This is ideal for someone giving the service a try for the first time – the only downside is, the cost of setting up each new loan is $159 (rather than the significantly reduced cost that comes with a Pro or Plus account).

So basically, if you’re planning to create new loans on a somewhat regular basis (i.e. – more than 2 or 3 new deals per year), it’s pretty easy to justify the cost of a Pro or Plus plan.

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