Step 2 – Informal enquiries

If a payment is missed, particularly the first payment, we recommend you refrain from immediately get heavy with the borrower. If there is an innocent mistake jumping the gun will damage your relationship with the borrower and your reputation with the introducing broker.

The borrower may have swapped a digit in the bank account number accidentally when they set up the transfer etc. The best thing to do is contact the broker who arranged the loan and ask them to contact the borrower. If this gets you nowhere within 48 hours send an email to the borrower. If they avoid you then ask us to write to their lawyer.

The borrower has seven days from the due date before the higher rate of interest kicks in. You want the borrower to know that you want them to pay before then. This generates goodwill and keeps communication channels open. Goodwill leads to performing loans being rolled over upon expiry.

You can email the borrower but it is unwise to speak to them over the telephone. By keeping your communication in writing it ensures the borrower does not later claim that you verbally promised some sort of indulgence. If you do speak with the borrower, send them an email immediately after the conversation confirming what was said or agreed to in that conversation. Your email will trump both your recollections should recollections later differ.