Virtual accounts are digital bank accounts that exist only online. Unlike traditional bank accounts tied to a specific branch or issued with a physical card, virtual accounts are created and managed entirely through digital platforms. They serve as unique identifiers for receiving and sending money, typically hosted under a parent account or banking relationship.
These accounts are not associated with physical cards or branches, which means users don’t need to visit a bank or carry a debit card to use them. Despite this, virtual accounts can perform many of the same functions as regular accounts. Users can receive transfers, make payments, and pay bills. Learn more here.
Virtual accounts come with real-time transaction tracking, enabling users and businesses to monitor inflows and outflows as they happen. Instant notifications further improve transparency, making it easy to confirm when a payment is received or processed.
Once your account setup process is complete, Lendsqr will seamlessly allocate a virtual account to each customer and lender. These accounts are automatically created and linked to the user’s profile, removing the need for manual setup. These virtual accounts are designed to fulfill two essential functions: facilitating loan disbursements and optimizing the loan repayment process.
For example, a borrower applies for a loan through a lender using Lendsqr. Once the loan is approved, the lender disburses the amount into the borrower’s virtual account. The borrower gets an instant alert and transfers the money to their personal account. When it’s time to repay, the borrower pays back in installments to the same virtual account. Each repayment is instantly detected, marked against their loan, and the lender gets real-time updates on repayment progress, all without manual tracking or intervention.
Funding virtual accounts
For Borrowers: To ensure timely loan repayment, borrowers can effortlessly settle their outstanding amounts by initiating a bank transfer to their designated virtual account. The Lendsqr platform will then automatically deduct the loan repayment when it becomes due, ensuring a seamless process.
For Lenders: Lenders seeking to finance their service or disbursement accounts can do so by performing a bank transfer to the virtual account’s bank name and number, as provided by Lendsqr. Rest assured, the funds will be made available within a span of just 5 minutes, ensuring quick access to your financial resources.