Accounting for Consumer Loans

The diploma thesis 'Accounting for Consumer Loans' was created with the aim of researching the possibilities of granting consumer loans in the form of a limited liability company. The reason for choosing this topic is primarily personal interest.

Problem

The diploma thesis 'Accounting for Consumer Loans' was created with the aim of researching the possibilities of granting consumer loans in the form of a limited liability company. The reason for choosing this topic is primarily personal interest. It is based on the fact that the author is employed in a company whose activity includes, amongst other things, granting loans to entrepreneurs and which would like to expand its activity to consumer lending.

With the latter, however, we encounter the problem of how to provide software support and facilitate business operations, how to ensure accounting accuracy and traceability of information, how to ensure qualified personnel, and how to comply with all legal norms and requirements. The aim was to research how many similar companies there are in Slovenia that deal with this and how they have solved the problem of software support. If you are not a bank, it is extremely difficult or impossible to obtain an appropriate computer programme that would enable transparent approval and management of consumer loans.

Furthermore, the author wanted to highlight another problem. Although banks offer 'favourable' loans, more and more people decide to take out a loan from a private lender, as the conditions at banks are such that it is extremely difficult for an individual to meet them, so they have no other option than to take out a loan from a private lender. For the purpose of the diploma thesis, the author also took out a loan from a company engaged in consumer lending, and thus also became convinced that the process is much simpler, and the costs are not excessively higher than when taking out a short-term consumer loan from a bank.

The author researched how to connect administrative work processes with accounting processes and how to facilitate business operations, improve transparency, increase internal control, and reduce the possibility of errors. For this purpose, the author also conducted an interview with providers of consumer lending in Slovenia. Although there are still relatively few such providers in Slovenia, at least those that offer lending with ministerial permission and within the legal framework, the author nevertheless managed to find out something about the operations of the companies.

In the latter, they are reluctant to talk about their method and scope of business; especially now, when times are unpredictable due to the situation in the world, and there is also a great deal of risk present in the field of consumer lending.