A Disbursement Account on the Lendsqr admin console is the central account where all loan-related transactions, both disbursements and repayments are processed for a lender.
How it works
When a Nigerian lender signs up on Lendsqr, a dedicated disbursement account is automatically created for them. This account serves two main purposes:
- Loan Disbursement (Outflows): Funds are sent to borrowers from this account when loans are approved.
- Loan Repayment (Inflows): When borrowers repay their loans, the funds return to this same account.
This setup ensures that all loan transactions are tracked and managed in one place, providing clarity and better financial control.
Read further: Disbursement account, settlements and transactions
Virtual account integration
Each disbursement account is linked to a virtual account number. This virtual account:
- Is unique to the lender.
- Is used to fund the disbursement account, lenders transfer money into it to make funds available for loan disbursement.
- Allows seamless inflows from borrowers during repayments.
The virtual account acts as the public-facing account for funding, while the disbursement account manages internal loan operations.
Why it matters
Having a dedicated disbursement account helps lenders:
- Maintain transparency in all loan-related transactions
- Easily track cash flow related to disbursements and repayments
- Operate efficiently without manual reconciliation
Further reading: Introducing third-party disbursement: A game-changing feature for lenders