Do You Want to Increase the Likelihood of Borrower Payments?
As a lender, one of your highest priorities is ensuring that borrowers make their payments. With the help of an in-depth underwriting process and a PaaS, Insight provides insight to online lenders in the subprime lending industry. If you struggle getting your borrowers to make payments on time, check out some of these strategies. They will help you increase the odds of borrower payments.
1. Set Up Recurring Payments
Let’s face it: life gets busy. It’s easy to lose track of bills- including making the next payment on a loan. If you’re struggling to get your borrowers to pay on time, setting up recurring payments or automatic reminders can benefit your company by ensuring that the payments are automatically withdrawn. As a result, your stress can be reduced by making these payments more predictable.
2. Know Your Lead
Investigating your lead requires hours of work, but in the end, could save you a lot of money. Knowing your lead, their budgets, financial history, current situation, etc. could potentially save you a lot of headaches and money. However, this process is time consuming.
You can get the best of both worlds; Save time and investigate your leads properly using our primary software, Decision Cloud. It is a cloud-based underwriting and analytics platform that allows lenders to create and identify their most profitable underwriting models. Integrated with a variety of loan management systems and lead providers, Decision Cloud enables technical agility across the platform in order to create solidified connections between companies and efficient workflows.
Using Insight’s Decision Cloud platform, you can automate this verification process by creating a decision waterfall. Machine learning and comprehensive A/B testing, makes it possible for our platform to help lenders empower their business and protect themselves and borrowers against online lead fraud.
3. Offer No-Penalty Accelerated Payments
The more payments a borrower makes, the sooner you get your money back. In some cases, you may want them to make payments ahead of time. While this may decrease what you can earn from them in interest, it also creates a cushion that allows you to get more payments from the borrower in the early days of the loan.
Accelerated payments help your borrowers pay off their loans sooner, which can be very appealing for borrowers who want to get out of debt. Offering accelerated payment options may also help borrowers prioritize the loan when they start trying to pay down debt. On the other hand, if you take out penalties for early payoff, borrowers may wait to pay off their loans with you.
4. Make Payment Simple
Ideally, making payments on a loan should be as convenient for a borrower as possible. The days when borrowers had to send in their payments by mail each month are long gone! Today’s buyers want to be able to pay online or from their mobile devices. They want both reminders delivered via email and to have multiple payment options; such as: credit card, debit or online money transfer systems. The more options you offer your borrowers, the easier and more convenient it is for them to make those payments–and the greater the likelihood that they’ll take care of their payments in a timely manner.
Our underwriting and analytics platform is designed to help lenders choose the best, safest, and most ideal borrowers. In turn, increasing the likelihood of consumer payments for online lenders. Decision Cloud is designed to make it easier for lenders to choose ideal leads, and avoid picking up leads that are continuously getting shopped around in the subprime lending industry. We provide the applications and flexibility necessary to increase your return on investment, decrease your overall acquisition costs and eliminate the unknown.